[vc_empty_space height=”10px”]
How have different governments around the world responded to the health and economic crisis and what are some of the innovative responses that will stimulate the economy and ensure a sustainable recovery?[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Randall%20S%20Kroszner%22%2C%22job_role%22%3A%22%20Deputy%20Dean%20for%20Executive%20Programs%20and%20Norman%20R.%20Bobins%20Professor%20of%20Economics%2C%20University%20of%20Chicago%20Booth%20School%20of%20Business%20(United%20States)%22%2C%22content%22%3A%22Randall%20S.%20Kroszner%20is%20Deputy%20Dean%20for%20Executive%20Programs%20and%20Norman%20R.%20Bobins%20Professor%20of%20Economics.%20Kroszner%20served%20as%20a%20Governor%20of%20the%20Federal%20Reserve%20System%20from%202006%20until%202009.%20He%20chaired%20the%20committee%20on%20supervision%20and%20regulation%20of%20banking%20institutions%20and%20the%20committee%20on%20consumer%20and%20community%20affairs.%20In%20these%20capacities%2C%20he%20took%20a%20leading%20role%20in%20developing%20responses%20to%20the%20financial%20crisis%20and%20in%20undertaking%20new%20initiatives%20to%20improve%20consumer%20protection%20and%20disclosure%2C%20including%20rules%20related%20to%20home%20mortgages%20and%20credit%20cards.%20He%20represented%20the%20Federal%20Reserve%20Board%20on%20the%20Financial%20Stability%20Forum%20(now%20called%20the%20Financial%20Stability%20Board)%2C%20the%20Basel%20Committee%20on%20Banking%20Supervision%2C%20and%20the%20Central%20Bank%20Governors%20of%20the%20American%20Continent%20and%20was%20a%20director%20of%20NeighborWorks%20America.%20He%20chaired%20the%20working%20party%20of%20the%20OECD%2C%20composed%20of%20deputy%20central%20bank%20governors%20and%20finance%20ministers%2C%20on%20policies%20for%20the%20promotion%20of%20better%20international%20payments%20equilibrium.%20As%20a%20member%20of%20the%20Fed%20Board%2C%20he%20was%20also%20a%20voting%20member%20of%20the%20Federal%20Open%20Market%20Committee.%5CnSince%201990%2C%20Kroszner%20has%20taught%20at%20the%20University%20of%20Chicago%20Booth%20School%20of%20Business.%20He%20was%20director%20of%20the%20George%20J.%20Stigler%20Center%20for%20the%20Study%20of%20the%20Economy%20and%20the%20State.%20He%20served%20as%20editor%20of%20the%20Journal%20of%20Law%20%26%20Economics%20and%20has%20been%20associate%20editor%20of%20a%20number%20of%20other%20academic%20and%20policy%20journals.%20He%20was%20a%20member%20of%20the%20board%20of%20directors%20at%20the%20National%20Association%20for%20Business%20Economics%20and%20the%20Financial%20Management%20Association.%5CnDr.%20Kroszner%20serves%20as%20the%20Chair%20of%20the%20Financial%20Research%20Advisory%20Committee%20of%20the%20Office%20of%20Financial%20Research%20of%20the%20US%20Treasury.%20He%20is%20a%20member%20of%20the%20Federal%20Reserve%20Bank%20of%20Chicago%E2%80%99s%20Academic%20Advisory%20Council%20and%20of%20the%20board%20of%20advisors%20of%20the%20Paulson%20Institute.%20In%20addition%2C%20he%20is%20a%20research%20associate%20of%20the%20National%20Bureau%20of%20Economic%20Research..%20Kroszner%20received%20a%20Sc.B.%20(magna%20cum%20laude)%20in%20applied%20mathematics-economics%20(honors)%20from%20Brown%20University%20in%201984%20and%20an%20M.A.%20(1987)%20and%20Ph.D.%20(1990)%2C%20both%20in%20economics%2C%20from%20Harvard%20University.%5Cn%22%2C%22image%22%3A%2231889%22%2C%22linkedin%22%3A%22%22%7D%2C%7B%22name%22%3A%22Lucrezia%20Reichlin%22%2C%22job_role%22%3A%22Professor%20of%20Economics%2C%20London%20Business%20School%20(United%20Kingdom)%22%2C%22content%22%3A%22Lucrezia%20Reichlin%20is%20Professor%20of%20Economics%20at%20the%20London%20Business%20School%2C%20non-executive%20director%20of%20AGEAS%20Insurance%20Group%20and%20Eurobank%20Ergasias%20SA%2C%20as%20well%20as%20chair%20and%20co-founder%20of%20Now-Casting%20Economics%20ltd%20and%20a%20trustee%20of%20the%20International%20Financial%20Reporting%20Standards%20Foundation.%20She%20is%20a%20columnist%20for%20the%20Italian%20national%20daily%20Il%20Corriere%20della%20Sera%20and%20a%20regular%20contributor%20of%20Project%20Syndicate.%20Reichlin%20received%20a%20Ph.D.%20in%20Economics%20from%20New%20York%20University.%20She%20has%20held%20a%20number%20of%20different%20academic%20positions.%20From%202005%20to%202008%20she%20was%20the%20director%20general%20of%20research%20at%20the%20European%20Central%20Bank.%20From%202009%20%E2%80%93%20April%202018%20she%20was%20non-executive%20director%20of%20UniCredit%20Banking%20Group%20and%20from%202013-2016%20she%20was%20chair%20of%20the%20Scientific%20Council%20at%20the%20Brussels%20based%20think-tank%20Bruegel.%20Reichlin%20has%20been%20an%20active%20contributor%20to%20the%20life%20of%20the%20Centre%20for%20Economic%20Policy%20Research%20(CEPR)%20over%20the%20years.%20She%20has%20been%20research%20director%20in%202011-2013%2C%20first%20chair%20of%20the%20CEPR%20Euro%20Area%20Business%20Cycle%20Dating%20Committee%2C%20co-founder%20and%20scientist%20in%20charge%20of%20the%20Euro%20Area%20Business%20Cycle%20Network%20and%20she%20is%20now%20a%20trustee.%5CnShe%20is%20a%20Fellow%20of%20the%20Econometric%20Society%2C%20the%20British%20Academy%2C%20the%20European%20Economic%20Association%2C%20and%20Academia%20Europaea.%20In%202016%20she%20received%20the%20Birgit%20Grodal%20Award%2C%20European%20Economic%20Association%2C%20and%20the%20Isaac%20Kerstenetzky%20Scholarly%20Achievement%20Award.%5CnReichlin%20has%20published%20numerous%20papers%20on%20econometrics%20and%20macroeconomics.%20She%20is%20an%20expert%20on%20forecasting%2C%20business%20cycle%20analysis%20and%20monetary%20policy.%20She%20is%20currently%20working%20on%20a%20book%20about%20the%20European%20Central%20bank%20during%20the%20crisis.%20She%20pioneered%20now-casting%20in%20economics%20by%20developing%20econometrics%20methods%20capable%20of%20reading%20the%20real%20time%20data%20flow%20through%20the%20lenses%20of%20a%20formal%20econometric%20model.%20These%20methods%20are%20now%20widely%20used%20by%20central%20banks%20and%20private%20investors%20around%20the%20world.%20Her%20papers%20have%20appeared%20in%20top%20scientific%20journals%2C%20including%20the%20American%20Economic%20Review%2C%20Review%20of%20Economic%20Studies%2C%20Review%20of%20Economics%20and%20Statistics%2C%20Journal%20of%20Econometrics%2C%20Journal%20of%20Monetary%20Economics%20and%20Journal%20of%20the%20American%20Statistical%20Association.%5Cn%22%2C%22image%22%3A%2231890%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Flucrezia-reichlin-828a6441%2F%22%7D%5D” title=”Speakers” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Amanda%20White%22%2C%22job_role%22%3A%22Director%20of%20institutional%20content%2C%20Conexus%20Financial%20(Australia)%22%2C%22content%22%3A%22Amanda%20White%20is%20responsible%20for%20the%20content%20across%20all%20Conexus%20Financial%E2%80%99s%20institutional%20media%20and%20events.%20In%20addition%20to%20being%20the%20editor%20of%20Top1000funds.com%2C%20she%20is%20responsible%20for%20directing%20the%20global%20bi-annual%20Fiduciary%20Investors%20Symposium%20which%20challenges%20global%20investors%20on%20investment%20best%20practice%20and%20aims%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%2C%20and%20political%20contexts.%20She%20holds%20a%20Bachelor%20of%20Economics%20and%20a%20Masters%20of%20Art%20in%20Journalism%20and%20has%20been%20an%20investment%20journalist%20for%20more%20than%2025%20years.%20She%20is%20currently%20a%20fellow%20in%20the%20Finance%20Leaders%20Fellowship%20at%20the%20Aspen%20Institute.%20The%20two-year%20program%20seeks%20to%20develop%20the%20next%20generation%20of%20responsible%2C%20community-spirited%20leaders%20in%20the%20global%20finance%20industry.%22%2C%22image%22%3A%2231872%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Famanda-white-101a7515%2F%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]
Key takeaways
Randy Kroszner
Everyone wants to know whether we are setting ourselves up for a crash.
Companies who are raising equity or debt and holding the cash can build a stronger “fortress balance sheet” to make them more resilient.
The question is whether and when the Federal Reserve can pull back their additional support to avoid inflation. However, in the short run the major risk is deflation, not inflation, and the Fed will do everything possible to avoid a deflationary scenario.
Lucrezia Reichlin
Monetary and fiscal policies in response to COVID-19 have been very different to the GFC period. We are likely to see increased innovation in coordination between monetary and fiscal policy.
One key question is whether Europe will be able to cope with individual country national debt by transferring risk between countries.
We should not be complacent of the possibility of inflation, however central banks have several instruments to counteract the potential risk, assuming they act in a timely manner.
A reduction of stimulus too early could result in a deflationary spiral.
Central banks will eventually think about how broad their investment mandate should be including sustainable investing, but we are not there yet.
[vc_empty_space height=”10px”]
Poll results
What do you think is the number one potential unintended long-term consequence from the policy responses to the crisis? (for example inflation, or inflated asset prices)
The Florida State Board of Administration has made some strategic moves to take advantage of opportunities in the dislocation, including in private equity, distressed debt and active listed equities.. But CIO, Ash Williams, is concerned about the underlying real economy.
How can investors work together to combat inequality? In this podcast episode Amanda White speaks to the president of CalPERS, Henry Jones, about his own experience and the fund's journey in tackling diversity and inclusion, in particular issues of racism.
This episode explores the key pillars of a sustainable recovery including the three important long term trends that need to be addressed climate change, loss of biodiversity and inequality.
It explores the key role for the finance industry which includes building new models that are not only about maximising monetary profits but also transition theory, and the value of ecological and social capital.
COVID-19 has delivered an enormous global shock, leading to steep recessions in many countries. The baseline forecast by the World Bank envisions a 5.2 per cent contraction in global GDP in 2020—the deepest global recession in decades.
Nigel Topping who was appointed by the UK Government as the High Level Climate Action Champion for United Nations climate talks, COP26 joins Fiona Reynolds, chief executive of the PRI, in conversation with Amanda White, editor of Top1000funds.com This episode focuses on climate change and how, amongst and despite, the short-term focus of this COVID-19 crisis, we can mobilise government, business and investors into action around this important issue of climate change.
The global COVID-19 pandemic has highlighted the need for better risk management tools to handle longevity and ageing. This paper by Wharton's Olivia Mitchell, offers an assessment of the status quo prior the coronavirus; evaluates how retirement systems are faring in the wake of the shock; examines insurance and financial market products that may render retirement systems more resilient for the world’s ageing population; and looks at the potential role for policymakers.
For the economic recovery from the COVID-19 crisis to be durable and resilient, a return to ‘business as usual’ and environmentally destructive investment patterns and activities must be avoided. To avoid this, economic recovery packages should be designed to “build back better”.
Leave a Comment
You must be logged in to post a comment.
Login