Claudia Buch: The intersection of academic and real-world economics

Remarks (virtual) by Prof Claudia Buch, Vice-President of the Deutsche Bundesbank, at the CORE (Curriculum Open-access Resources in Economics) Econ Workshop "Teaching and learning with Die Wirtschaft", 24 February 2023.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Dear Participants,

Let me, first of all, thank the organisers for inviting me to give this talk on the occasion of the launch of the German edition of CORE Econ.

Over the years, I have followed the CORE project very closely as it is based on a concept that is very close to my thinking about economics – and about teaching economics. Let me highlight a few features which I think are particularly relevant – the importance of evidence-based policymaking, of understanding frictions in markets, of linking theory and evidence, and of using case studies.

In developing these arguments, I will use examples from financial stability policies, which is one of my main responsibilities at the Bundesbank. Financial stability is, in short, about the ability of the financial system to perform its functions for the real economy – even in times of stress and structural change.

1 Current assessment of financial stability

To analyse financial stability issues, the Bundesbank focuses on vulnerabilities in the financial system, risks that could expose these vulnerabilities, and resilience in the financial system with regard to shocks.