The problem is that this can amplify swings in financial conditions and lead to the emergence of financial imbalances. Recall the link between credit growth and future financial stress that I just mentioned. Then, during the downturn when credit risk increases, banks are required to increase capital holdings, thus exacerbating the economic weakness and financial stress.
He is also member of the High-level Advisory Board of the United Nations on the sustainable development goals (SDGs) and engages for the equality of opportunity for disadvantaged children in various NGOs. His research work focuses on macroeconomics, inequality and European integration.