In his lecture, Professor Holmström will discuss why credit markets operate fundamentally differently from equity markets and why this matters for financial stability. By taking information view, he will explain how the deliberate opacity of debt can enhance liquidity. He shows why every major financial crisis is essentially a debt crisis, and how these dynamics should shape policy on transparency, capital buffers, and banking regulation. The discussion will also explore new risks brought by the rise of digital payments, including the rapid growth of stablecoins.
A global authority on contract theory, Holmström received the 2016 Nobel Prize in Economics for his groundbreaking research on incentives and governance. He has co-authored the influential book Inside and Outside Liquidity with fellow Nobel laureate Jean Tirole. Before joining MIT in 1994, Holmström taught at Yale University and Northwestern University, and served on the boards of Nokia Corporation and Aalto University.
EBS is much more than a university. It is a vibrant community where emerging talent and experienced thinkers collaborate to shape the future of business. Nearly 1,000 students, hundreds of continuing education participants, dozens of university linked companies, and more than 70 international partners create an environment that fosters bold ideas, innovation, and positive societal change.
Additional information:
Meelis Kitsing
Rector of EBS
Meelis.kitsing@ebs.ee
Tel. +372 503 3667
