The risks of financial institutions and markets in Serbia-microeconomic and macroeconomic approach

The goal of this project is to provide a comprehensive and integrated analysis of risks related to the financial sector in the Serbian and other markets. The project consists of seven research topics. The first topic is related to the improvement of risk assessment and management models for financial institutions. The second topic addresses the influence of fiscal and monetary policy on the stability of financial system and real sector of the economy. The third topic treats the problem of public and external debt, as well as the issue of balance-of-payment crisis. The fourth topic is related to design of network of European financial institutions, associated risks, and mechanisms of transfer of crisis from one financial group to another, or from one financial group to the entire region. This topic also treats the problem of asymmetric information, moral hazard, and regulatory coordination under regional entanglement of financial institutions, as well as the optimal monetary policy in the absence of a common fiscal policy. The fifth topic studies the mortgage and real estate market as the most important investment class in Serbia and other countries. The sixth topic is associated to issues of asymmetric information and moral hazard in corporations, and their influence on price formation and liquidity of financial markets. The seventh topic consists of the application of power law to default risk, financial bubbles and crises.