The past eight years have seen the global economy experience of a number of severe financial crises, including the subprime crisis in the US and the European debt crisis. These events share the characteristic that small initial shocks, concentrated within a particular part of the economy, eventually spread through financial markets and prices, leading to widespread turmoil. In response to these and similar events in emerging market economies, researchers have analyzed models of "macro-prudential" policymaking, or policies aimed at preventing the onset of financial crises as opposed to those that act to mitigate the severity of crises once they begin. The goal of this conference is to bring together researchers studying the interaction of pecuniary externalities and policy; from those studying international capital flows and "sudden stops", in which foreign capital abruptly flees the domestic economy, to those studying domestic banking crises.

The academic organizers of the conference are Eric Young, Professor of Economics, and Zach Bethune, Assistant Professor of Economics, both at the University of Virginia.