Dimitrios Tsomocos

Dimitrios Tsomocos

Professor of Financial Economics


Saïd Business School University of Oxford Park End Street Oxford OX1 1HP

Profile

Alongside his role at the School, Dimitrios is a Fellow in Management at St Edmund Hall, University of Oxford. He is also a Senior Research Associate in the Financial Markets Group at the L.S.E.

Dr. Dimitrios Tsomocos is Professor of Financial Economics at Saïd Business School, University of Oxford & Fellow in Management at St Edmund Hall, University of Oxford. He is also a Senior Research Associate at the Financial Markets Group at the London School of Economics.

A mathematical economist by trade, his main areas of expertise include:

  • Banking and regulation
  • Endogenous money, liquidity, and financial instability
  • Incomplete asset markets
  • Theoretical asset pricing
  • Systemic risk
  • Issues of new financial architecture

Dimitrios’s research has had a substantial impact on economic policy around the world. In particular, he analyses issues of contagion, financial fragility, interbank linkages and the impact of the Basel Accord and financial regulation in the macroeconomy, using a General Equilibrium model with incomplete asset markets, money and endogenous default. He is working towards designing a new paradigm of monetary policy, financial stability analysis and macroprudential regulation. He publishes frequently in leading journals, including Journal of Mathematical EconomicsEconomic TheoryJournal of Money, Credit and BankingJournal of Financial StabilityAnnals of Finance, International Journal of Central Banking, and Journal of Economics.

He co-developed the Goodhart – Tsomocos model of financial fragility in 2003 while working at the Bank of England. The impact has been significant and more than ten central banks have calibrated and are calibrating the model, including the Bank of Bulgaria, Bank of Colombia, Bank of England, Bank of Jamaica, the Bank of Korea, Bank of Russia, and the Central Bank of Chile. In 2011, Dimitrios provided testimony to House of Lords for the Economic and Financial Affairs and International Trade Sub Committee’s report, ‘The future of economic governance in the EU’.

Dimitrios has been an economic advisor to one of the main political parties in Greece and regularly provides commentary on the state of the Greek economy to local and international media. He has worked with central banks in countries including England, Bulgaria, Colombia, Greece, Korea and Norway to implement the Goodhart – Tsomocos model and advise them on issues of financial stability. He also serves as a Senior Research Associate at the Financial Markets Group at the London School of Economics.

Since joining Saïd Business School in 2002, Dimitrios has contributed to the design and implementation of the school’s teaching and research programmes. He has served as Director of the MSc in Financial Economics and was instrumental in creating the DPhil Programme in Management Studies (Financial Economics).  He supervises doctorate students at both the Saïd Business School and the Department of Economics. Some of his former students have joined leading academic institutions around the world as assistant professors after obtaining their DPhils, and some joined IMF, Federal Reserve Board, Bank of England, and Bank of Thailand. Prior to joining Saïd, Dimitrios taught at Columbia University, and was an economist at the Bank of England. He holds a BA, MA, M.Phil. and a PhD from Yale University.

See Dimitrios's personal website.

Research

Dimitrios explores banking and regulation, incomplete asset markets, financial instability and systemic risk, and new financial architecture.

Financial stability and systemic risk

Recently his research focused on developing a new framework and associated models to assess financial stability and systemic risk.  These models provide policy responses for financial crises management and prevention. In addition, together with Professor Charles A.E. Goodhart and their co-authors and students, Dimitrios has calibrated and tested these models using data from the Bank of England and other central banks and has suggested new metrics of financial stability.

Banking and financial regulation

Dimitrios’ work is this area has been widely published in the leading international economics and finance journals. He is currently working on developing a general equilibrium theory of financial regulation and macroprudential policy which attempts to create a model of regulatory policy within a dynamic framework that can be used by central banks, governments and international organisations.

Money, default and incomplete asset markets

Dimitrios’ work establishes the linkages of endogenous money creation, liquidity, default and missing financial markets. It assesses the macroeconomic consequences and welfare properties of liquidity, default and collateral.

View Dimitrios' research.

Engagement

Dimitrios is an expert in financial economics and his work has had a substantial impact on economic policy around the globe.

While working at the Bank of England, he co-developed the Goodhart-Tsomocos model of financial fragility, which has been calibrated by more than ten central banks. His initial work has been published in two volumes, edited with C.A.E. Goodhart, by Edward Elgar Publishing Ltd in 2012.

Dimitrios is currently developing a general equilibrium theory of financial regulation and macroprudential policy that can be used by central banks, governments and international organisations for crisis prevention and management.

In 2011 Dimitrios provided testimony to the House of Lords for the Economic and Financial Affairs and International Trade Sub Committee’s report: ‘The future of economic governance in the EU’.

An advisor to one of the main political parties in Greece and numerous central banks, Dimitrios regularly contributes to the Greek and international business press on financial stability issues. In a 2010 Financial Times article Dimitrios proposed how to resolve the debt crisis in Greece and in a January 2011 article in the Greek publication Κεφάλαιο he accurately predicted that the austerity programme imposed on Greece by the Troika would fail. His proposals and contributions to the international press on the introduction of a dual currency and controls on international capital flows have stimulated debate on the resolution of the sovereign debt crisis of the Club Med countries and the international capital imbalances.

Dimitrios is currently an Associate Editor for numerous publications including the Annals of Finance, Economic Theory and the Greek Economic Review. He also serves on several editorial and advisory boards for journals including the Open Economics Journal, the Journal of Risk Finance and Decisions in Economics and Finance.

Dimitrios was awarded the 2004 Bank Sabadell prize for his work on the economics of banking. He is a frequent speaker at major global conferences, universities, corporations and research institutes. A few of his recent speaking engagements include the 2012 Bank of Korea Conference on ‘Systemic Risk and Financial Stability’, the 2011 CCBS-LSE Conference on financial regulation, the 7th Annual Cowles GE Conference at Yale University, and the Office of Financial Research and the Financial Stability Oversight Council in Washington, D.C.

He has also served on the Faculty Board of Saïd Business School, the Steering Committee of the Oxford University Centre for Business Taxation and the Finance and Investment committees of St. Edmund Hall.

Teaching

Dimitrios teaches undergraduate and graduate programmes at Saïd Business School.

He was instrumental in creating the DPhil programme at Saïd Business School, and many of his DPhil alumni have gone on to become leaders in the finance and banking industry at prestigious international organisations including the IMF, European Central Bank, Banque de France, Central Bank of Chile, University of Warwick, Higher School of Economics (ICEF) and the University of Piraeus.

Dimitrios has also created a number of other courses at the School, including Advanced Asset Pricing and Market Microstructure, Fixed Income, Derivatives Valuation, and Asset Pricing.

He has held visiting professorships at numerous universities including Columbia University Graduate School of Business, International College of Economics and Finance, Athens University of Economics and Business, University of Athens Department of Economics and Universidad de los Andes in Colombia.

Dimitrios teaches:

  • Advanced Asset Pricing and Market Microstructure (MBA, MPhil)
  • Asset Pricing (MBA, MFE)
  • Derivatives Valuation (MBA, MFE)
  • Finance (undergraduate)
  • Fixed Income (MBA, MFE)
  • Fixed Income and Derivatives (MBA, MFE)
  • General Management (undergraduate)