b'Faculty ResearchFelipe ElaineWillStevieKeithInderMahfuz B G Silva Mauldin Demer Neuman Czerney Khurana ChyTrulaske Accounting Faculty Publish Impactful ResearchBy Kelsey Allen responded, extending its balance sheet and using the money New research from faculty in the Trulaske College of Busi- generated to purchase assets from the market, an interven-ness School of Accountancy gives us insights into the besttion known as quantitative easing. way to respond to a global financial crisis, how CFOs canThe Fed acted like the protagonist of the policy develop skills for their modern roles and responsibilities, aresponse, Silva says. What happens is we have a bigger new way to predict internal control quality, and how database of U.S. dollars relative to other countries. The U.S. visualization can make audits more effective. Heres a look atdollar is relatively depreciated when compared to other four researchers and their findings. currencies. This can come with negative consequences The Best Way to Respond to a Globalbecause it generates bubbles in other markets and destabi-Financial Crisislizes capital flows in other countries. The ongoing global recession caused by the pandemic, on The global pandemic triggered a deep economic down- the other hand, elicited a response by the Federal Reserve turn in the U.S., leading some to compare the Great Lock- and 20 other central banks that not only intervened in their down to the Great Recession. Although the 2008 Globalown domestic markets but also coordinated globally with Financial Crisis and the pandemic have different causes, theone another. consequences are similar.Silva and his colleagues wanted to know if this multilateral New research from Felipe Bastos Gurgel Silva, anresponse to the pandemic mitigated the losses experienced assistant professor in the School of Accountancy at theby emerging market economies during the subprime crisis. Trulaske College of Business, compares these crises andThey found that while unconventional monetary policies offers insights into how central banks can respond to futurelike quantitative easing successfully lowered the disaster disasters in the financial market.risk for the U.S. during both crises, the unilateral interven-Whenever we have two events that are similar, thetion from 2008 to 2014 increased disaster risk in emerging similarities themselves dont tell us much, Silva says. Itsmarket economies. However, when multiple central banks by comparing the differences between the financial crisisact together, like during the global pandemic, there is a and the pandemic that Silva was able to identify importantdecline in disaster risk for both advanced economies and lessons for the U.S. and global economies.emerging markets. The key difference between the Great Recession and theThe advantage when you have a multilateral action by global pandemic were the responses by central bank gover- central banks is that you dont have distortions because nors and policymakers from major emerging market econo- everybody is expanding, Silva says. Its more destabi-mies. During the Great Recession, when the epicenter of thelizing when you have a single central bank acting. If there crisis was the U.S. market, the Federal Reserve unilaterallyis a major crisis, it is better to have the monetary policy 14 School of Accountancy'