International Finance
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.
Next Steps in the Sovereign Debt Restructuring Debate
CIGI is co-hosting an Expert Group Meeting on sovereign debt restructuring at the United Nations tomorrow. The meeting will be held against a backdrop of intensifying concerns about the future of the single European currency and the potential disruption that could result from a Greek exit from the euro zone. In this regard, after a hiatus of several years the unfolding crisis in Greece reanimates the debate on sovereign debt restructuring that raged a decade or more ago.
Financial Stability Board: The Arduous Road to Mission Accomplished
Since the international financial crisis of 2008, the G20 has devoted extensive attention to the improvement of international financial regulatory standards. Having agreed on a wide range of new standards, the G20 is now facing growing questions about whether these will actually be implemented at the national level in a consistent manner. In addition to recommitting themselves to adopt these standards, the G20 leaders should use the 2012 Mexican summit to strengthen the capacity of the Financial Stability Board (FSB) to address this issue.
Fundamentals Lost: Failures of Policies and Governance to Promote Economic Growth
As we approach the Los Cabos summit, it is easy to be downbeat about the state of the global economy. The G20 goals of a full recovery from the Great Recession and putting the global economy on a sustainable growth path, as outlined in the Cannes Action Plan for Growth and Jobs, are not only far from realization, but they have also suffered serious setbacks due to failures of policy and governance.
The Euro Zone’s Hour of Decision
The euro zone’s steady inexorable crisis has accelerated as efforts to form a Greek government failed and new elections were called.
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.
The Challenges of Monetary Policy
Mark Carney, the Governor of the Bank of Canada and chairman of the Financial Stability Board, has an interesting contribution on the role of monetary policy in the Financial Times. In it, he argues that this is not the time to abandon the inflation-targeting framework that has served Canada so well. I agree. During the crisis, the Bank of Canada adopted extraordinary measures to relieve stresses in the financial system and to preserve the flow of credit to the economy.
Good ideas on global finance governance must navigate the shoals of interest-based lobbying
It is tempting to think that good ideas will prevail, even (or especially) in technical issues such as those on the global financial governance agenda. Yet this type of advance may prevail in areas such as those relating to the highly complicated but vital "Basel III" framework, so-called because it represents the third round of standards put forward by the Basel Committee on Banking Supervision, a forum of international bank regulators.
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).
Kick Argentina out of the G20? Absurd
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.
Grants of up to $250,000 available for researchers through CIGI-INET’s Spring 2012 Program
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.
A tale of two very different summits
"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.
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.
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.
The Woman Who Could Have Led the World Bank
I had the pleasure of hearing Dr. Ngozi Okonjo-Iweala speak yesterday at the Brookings Institution. She is a known figure in economics as the Nigerian minister of finance, but is even more known today for having challenged the US-European convention of having an American at the helm of the World Bank.
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.
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.
CIGI experts available for comment on IMF and World Bank Group spring meetings
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.
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.
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.