1. Of Prancing Horses and Bolted Stable Doors “The Chaplain’s Interesting Questions 2008/9” No 1 Sidney Sussex College 17th October 2008

2. Mr. Massimo M Beber Fellow in Economics Sidney Sussex College Cambridge CB2 3HU http://people.pwf.cam.ac.uk/mb65/ INTERNATIONAL ECONOMIC SECURITY Redland/ MBA - Cambridge INSTEP Programme 2010 http://people.pwf.cam.ac.uk/mb65/redland The Pitt Building,: Tue 3 rd May 2011

3. Lt. Gen. Mikhail Kalashnikov with vodka (20 th September 2004) EVOLUTIONARY LIBERALISM: FROM POWER TO PLENTY?

5. “Greed is good”

6. Prudential Ratios in Banking AssetsLiabilities Liquidity ReservesDeposit Liabilities Government SecuritiesNon-Deposit Liabilities Loans Equity (Shareholders’ wealth.

8. “You stupid boy!”

9. Two Hypotheses on finance Efficient Markets – Finance “oils the wheels” of the market – It speeds up income convergence at lower cost in current consumption – Rational expectations ensure stability – Competition empowers rational expectations Financial Instability – Expectations intrinsically volatile – Volatility creates real economic damage – This damage can be long-lasting (hysteresis) – Prudential regulation must be strict

10. EUROPEAN FINANCIAL REGULATION: BETWEEN EMH AND FIH Source: Committee of European Banking Supervisors Annual Report 2004.