Venture Capital and Financial Stability

Document Type

News Article

Publication Date

4-13-2024

Abstract

In her new paper, Interest Rates, Venture Capital, and Financial Stability, forthcoming in the Illinois Law Review, Professor Hilary Allen adds a new question: what are the risks to financial stability? Allen claims that low interest rates fueled the growth of venture capital, which is itself prone to inflating bubbles and exacerbating panics. She ultimately argues that financial regulators need to be more attuned to unexpected places where funding tends to flow during periods of accommodative monetary policy.

Source Publication

JOTWELL: The Journal of Things We Like

Link to Full Text

Share

COinS