The Global Financial Crisis

May 9, 2012

Elections in Europe: the "Network" Effect

The electoral map of Europe changed on the weekend.  If there is one clear message that the people of France and Greece sent to their governments, it is that, like Howard Beale in the movie Network, they are mad as hell and aren't going to take it anymore. The election of François Hollande, who campaigned on converting the euro zone fiscal stability pact to a growth pact, and political disarray in Greece, introduce additional uncertainty to the outlook.

We live in interesting times.

May 14, 2012

Risk, Uncertainty and the Problem of Adjustment

Efforts to form a new government in Athens failed over the weekend, raising the prospects of new elections and Greece’s possible exit from the eurozone. Financial markets have responded predictably: equity prices are down while bond yields are at new euro-era highs in Spain, but down in Germany. Meanwhile, ominous warnings issue forth from Brussels about a possible amicable divorce between Greece and its euro zone partners.

May 4, 2012

The Euro Crisis: The North vs the Southern Periphery

For the past two weeks, I have been a guest of the Bank of Finland’s Institute of Economies in Transition (BOFIT) where I am involved in projects studying the development of China’s financial markets and whether economic growth rates in Asia’s emerging markets, among other countries,  have de-coupled from growth in the advanced economies of the world (my presentation is available here).

Friday, May 4, 2012

Kick Argentina out of the G20? Absurd

The Toronto Star

Expelling Argentina from the G20 "would be the beginning of the end" for the international leaders forum, writes CIGI Chair of Global Governance Jorge Heine.

Tuesday, May 1, 2012

Grants of up to $250,000 available for researchers through CIGI-INET’s Spring 2012 Program

Declan Kelly and Eric J. Weiner
News Release

The Centre for International Governance Innovation (CIGI) and the Institute for New Economic Thinking (INET) are accepting research proposals for their joint Spring 2012 Grant Program, with grants ranging in value from $25,000 to $250,000.

April 27, 2012

Thinking Fast and Thinking Slow About Europe

A consequence of the financial crisis is the rising prominence of the field of behavioral economics. One of the most distinguished proponents of the view that the rational agent so commonplace in economic models does not exist is Daniel Kahneman, 2002 Nobel Laureate in economics. In the remarkable book Thinking, Fast and Slow Kahneman argues that while some decisions rely on intuition, others are deliberate and require reasoning and deduction.

Friday, April 27, 2012

The Challenge for Rio+20: Countering Two Decades of Inaction

Interviewee: David Runnalls / Interviewer: Declan Kelly

To mark the 20th anniversary of the 1992 Earth Summit, the United Nations is holding its Conference on Sustainable Development in Rio de Janeiro in June 2012. For a better understanding of the issues at play and a sense of what to expect from “Rio+20,” we talk to CIGI Distinguished Fellow David Runnalls.

Tuesday, April 24, 2012

A tale of two very different summits

The Hindu

"The outcomes could not have been more different — one a resounding success, the other a remarkable fiasco," writes CIGI Distinguished Fellow Jorge Heine in comparing the recent BRICS summit and the Summit of the Americas.

April 20, 2012

Prospects for Global Re-Balancing and the Future of Economic Cooperation

CIGI and the Brookings Institution co-hosted a lunchtime seminar on the G20 Mutual Assessment Process (MAP) at the Canadian embassy in Washington, D.C. on the margins of the IMF-World Bank spring meetings. To encourage the frank exchange of views, the seminar was held under the Chatham House Rule by which participants are not identified.

April 20, 2012

Jobs and Inclusive Growth: the IMF finally catches up to reality

Last year, the IMF created a working group to examine one of the most pressing issues facing the global economy and development today: jobs and inclusive growth. The problem exists in both the developed world and the developing world. Indeed, the Arab Spring and protests throughout southern europe have brought this issue to greater light. The working group reported its preliminary findings today at the IMF World Bank Spring Meetings, seeking the feedback of civil society actors and think tank fellows like yours truly.

April 19, 2012

Should We Fear Inflation?

I had the privilege of attending the recent Institute for New Economic Thinking (INET) conference in Berlin which was also co-sponsored by CIGI. There was considerable discussion about the continuing crisis in the euro zone, and the suitability of dealing with mounting debt problems through fiscal austerity.

April 19, 2012

Capital controls: a panacea to global imbalances?

At the IMF and World Bank spring meetings in Washington, D.C., there continues to be great talk  about the merits of capital controls. Particularly because we live in a time where developed countries continue to have low interest rates and developing countries have high interest rates that effectively cause a rapid and large influx of capital moving into developing and emerging market economies.

Wednesday, April 18, 2012

CIGI experts available for comment on IMF and World Bank Group spring meetings

Media advisory

Looking for expert commentary on the spring meetings of the International Monetary Fund (IMF) and the World Bank Group? The Centre for International Governance Innovation (CIGI) will have experts available for media interviews.

April 18, 2012

Is Constrained Discretion the Future of Global Financial Regulation?

The previous post, The Governance of Global Capital,makes the point that efforts to strengthen the Financial Stability Board (FSB) are needed to get the governance of global capital "right." The over-arching goal is to prevent another financial crisis that could undermine the international consensus on open, dynamic and liberal trade and payments.

Wednesday, April 18, 2012

Thomas A. Bernes: Overview of Paradigm Lost Conference

"The dominant issue was the situation in Europe, where the mood was that, clearly, Europe has not yet found a solution to its problems," CIGI Executive Director Thomas A. Bernes discusses the highlights of INET's Paradigm Lost Conference in Berlin and new initiatives for the CIGI-INET partnership.

Wednesday, April 18, 2012

Is Dr. Jim Yong Kim right for the job?

CBC Radio -- The Current

CIGI Senior Fellow Bessma Momani says Dr. Jim Yong Kim comes to the role of World Bank president "without understanding both the policy side and the economic side" of development.

Wednesday, April 18, 2012

Will the BRICS Nations Evolve into a More Powerful Bloc?

Gene Kuleta
Latin America Advisor

“ All indications are that this 'emerging-powers club will continue to grow into a significant agenda-setting body,” CIGI Distinguished Fellow Jorge says of the fourth annual BRICS summit, as part of the Latin America Advisor's Featured Q&A.

Tuesday, April 17, 2012

CIGI co-sponsors conference on strengthening the FSB

News Release

CIGI, along with the Bank of Mexico and the Bank of Canada, was a co-sponsor of a conference on the strengthening of the Financial Stability Board (FSB), held in Mexico City April 12-13, 2012.

Tuesday, April 17, 2012

Welcome Remarks at INET's Paradigm Lost Conference

Speakers include Thomas A. Bernes, Robert Johnson, Peter Jungen, and Philip Murphy

Robert Johnson (INET Executive Director), Peter Jungen (INET Board Member), Philip Murphy (US Ambassador to Germany) and co-sponsors Thomas Bernes from CIGI and Bernard Lorentz (Mercator) welcome delegates to INET's Paradigm Lost: Rethinking Economics + Politics Conference in Berlin 2012.

Tuesday, April 17, 2012

Paul Martin: Reflections on the Politics of Deficit Reduction

Speakers include Paul Martin

The Right Honorable Paul Martin, Former Prime Minister of Canada, discusses how Canada eliminated the deficit in the 1990s which was the worst of the G7 at the time. In doing so he discusses the timing and the need for governments to place greater emphasis on bringing the country's population onside when tough decisions are required.