Angelo Ranaldo

Angelo Ranaldo is Professor of Finance and Systemic Risk at the University of St.Gallen and Member of the University's School of Finance. Professor Ranaldo has served as a consultant and scientific advisor to international institutions such as the Bank of England, Bank of International Settlements, European Central Bank, and European Money Market Institute. He was recently appointed to the Bank Council of the Swiss National Bank.

Expertise

Professor Ranaldo is studying the main frictions within the financial system that make it less efficient and less stable. In particular, he focuses on three interacting and mutually reinforcing frictions: market illiquidity, balance sheet constraints of financial intermediaries, and institutional aspects such as monetary regulations and policies. The rationale of his research agenda is that if the balance-sheet capacity of financial intermediaries is depleted, their ability to intermediate markets and provide liquidity is reduced. This is especially true in over-the-counter markets that are heavily dependent on dealers, such as the currency market. In his current projects, he proposes innovative and accurate methods for measuring the liquidity of the currency market, showing its dependence on the financial health of dealers and demonstrating that illiquidity causes price inefficiency in forms of deviations from non-arbitrage conditions.