Past Event

The 13th World Knowledge Forum – The Great Breakthrough: New Solutions for the Global Crisis

Bruegel will co-organise a session in this year’s World Knowledge Forum – you can see the details of the session below. Panel title: "The global consequences of deleveraging" Co-organizers: Asian Development Bank and Bruegel Date and time: October 9, 17:00–18:20 Venue: Grand Hall Scope: The session will cover the various dimensions of deleveraging in the […]

Date: Oct 8 - Topic: Global Economics & Governance

Bruegel will co-organise a session in this year’s World Knowledge Forum – you can see the details of the session below.

Panel title: "The global consequences of deleveraging"

Co-organizers: Asian Development Bank and Bruegel

Date and time: October 9, 17:00–18:20

Venue: Grand Hall

Scope: The session will cover the various dimensions of deleveraging in the US, Europe, and Japan, and address its implications for emerging countries.

Moderator: Phil Smith, General Manager of Reuters News, North Asia

Panelists:

  • Jean-Louis Beffa, Honorary Chairman, Compagnie de Saint-Gobain
  • Erik Berglof, Chief Economist, European Bank for Reconstruction and
    Development
  • Mitsuhiro Fukao, Professor of Economics, Keio University
  • Jean Pisani-Ferry, Director, Bruegel
  • Changyong Rhee, Chief Economist, Asian Development Bank
  • Jorge Sicilia, Chief Economist, Banco Bilbao Vizcaya Argentaria SA

Synopsis:

The European debt crisis that has dominated policy discussions in recent times is a particularly acute aspect of a broader syndrome: by and large, all major advanced economies are confronted by a major deleveraging problem that affects in various proportions governments, households, and the financial sector. The implementation of Basel III in January 2013 is even
likely to exacerbate this deleveraging problem. In Europe the problem is compounded by systemic flaws in the functioning of the currency area but it is not of larger magnitude than elsewhere.
With the major advanced economies simultaneously going through the deleveraging process, there will undoubtedly be implications on long-term global growth prospects. Inevitably, there will be spillovers to emerging economies, not only in terms of slower growth but also in terms of capital flows, exchange rates, and financial market stability. Furthermore emerging countries themselves are not immune to excess leverage. Recessions can cause asset prices to decline, affecting the soundness of the banking sector even in emerging markets, especially those with large holdings of real estate and household debt.
There have also been differences of opinion about how the ensuing crises have been handled in these economies and the appropriate roles of monetary and fiscal policies in resolving the crises.
To assess these issues, this session will consider the following questions:

  • Private vs. public deleveraging, real vs. financial deleveraging: When it affects more than one category of agents, as is the case in several countries, what is the desirable sequencing?
  • Impact of Basel III on deleveraging: What are the possible consequences of Basel III on advanced countries’ deleveraging? What are the implications for banks’ riskier businesses, such as financing of infrastructure projects in developing countries? What are the impacts for trade financing?
  • The extent of deleveraging: How much deleveraging have advanced economies achieved? How much more needs to be done and over what time frame?
  • The balance between deleveraging and growth: What policies should advanced economies adopt to support economic recovery while deleveraging (i.e., reducing debt and stabilizing financial markets)?
  • The implications of deleveraging: What does the deleveraging processes in advanced economies mean for themselves and for emerging economies?
  • Lessons from deleveraging: How could emerging economies avoid the spillover effects of deleveraging in advanced economies? How could they secure the soundness of their banking sectors while advanced countries are deleveraging?
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Opinion

Why China should fear the EU's carbon border tax

Expect Beijing to soon start lobbying against the proposal.

By: Alicia García-Herrero Topic: Energy & Climate, Global Economics & Governance Date: July 26, 2021
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Blog Post

A world divided: global vaccine trade and production

COVID-19 has reinforced traditional vaccine production patterns, but the global vaccine trade has changed considerably.

By: Lionel Guetta-Jeanrenaud, Niclas Poitiers and Reinhilde Veugelers Topic: Global Economics & Governance Date: July 20, 2021
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Opinion

Increasing the global supply of essential medical supplies: Time for Europe to step up its global leadership

Europe has already made a significant financial contribution to beating the pandemic, now it has the oppurtunity and moral responsibility to do more.

By: Anne Bucher and Guntram B. Wolff Topic: Global Economics & Governance Date: July 19, 2021
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Blog Post

The European Union’s carbon border mechanism and the WTO

To avoid any backlash, the European Union should work with other World Trade Organisation members to define basic principles of carbon border adjustment mechanisms.

By: André Sapir Topic: Energy & Climate, Global Economics & Governance Date: July 19, 2021
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External Publication

Building the Road to Greener Pastures

How the G20 can support the recovery with sustainable local infrastructure investment.

By: Mia Hoffmann, Ben McWilliams and Niclas Poitiers Topic: Global Economics & Governance, Testimonies Date: July 15, 2021
Read article More on this topic More by this author
 

Opinion

Could the RMB dislodge the dollar as a reserve currency?

The dollar remains the world’s largest reserve currency, but it is facing both domestic and external risks.

By: Alicia García-Herrero Topic: Global Economics & Governance Date: July 14, 2021
Read about event
 

Past Event

Past Event

Financing for Pandemic Preparedness and Response

How can we better prepare for future pandemics? In this event, co-hosted by the Center for Global Development and Bruegel think tanks, speakers will present "A Global Deal for Our Pandemic Age", a report of the G20 High Level Independent Panel on Financing the Global Commons for Pandemic Preparedness and Response.

Speakers: Masood Ahmed, Victor J. Dzau, Amanda Glassman and Lawrence H. Summers Topic: Finance & Financial Regulation, Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: July 14, 2021
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Podcast

Podcast

What should public spending look like?

What should we do about the increase in public spending due to COVID-19? Bruegel Director Guntram Wolff and Former Deputy Secretary-General of OECD Ludger Schuknecht discuss.

By: The Sound of Economics Topic: Global Economics & Governance Date: July 14, 2021
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Upcoming Event

Sep
1
11:00

Resolving today’s global health crisis, and avoiding future pandemics

Bruegel Annual Meetings, Day 1- How do we exit the COVID-19 pandemic and ensure the world of tomorrow is less vulnerable to future pandemics?

Speakers: Jeremy Farrar, Amanda Glassman, Tharman Shanmugaratnam and Guntram B. Wolff Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels
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Upcoming Event

Sep
1
15:00

The future of EU-Africa relations

Bruegel Annual Meetings, Day 1 - A discussion of the state of play and outlook of EU-Africa relations.

Speakers: Masood Ahmed, Maria Demertzis, Amadou Hott, Vera Songwe and Jutta Urpilainen Topic: Global Economics & Governance Location: Palais des Academies, Rue Ducale 1
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Upcoming Event

Sep
2
16:00

Navigating a more polarised world: policy implications

Bruegel Annual Meetings, Day 2 - Are we entering a new age in the relationship between international economics and global politics? Is Europe well-equipped for this new world?

Speakers: Hélène Rey, Jean Pisani-Ferry, Adam Tooze and Sabine Weyand Topic: Global Economics & Governance Location: Palais des Academies, Rue Ducale 1
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External Publication

A Global Deal for Our Pandemic Age

Report of the G20 High Level Independent Panel on Financing the Global Commons for Pandemic Preparedness and Response.

By: Tharman Shanmugaratnam, Lawrence H. Summers, Ngozi Okonjo-Iweala, Ana Botin, Mohamed El-Erian, Jacob Frenkel, Rebeca Grynspan, Naoko Ishii, Michael Kremer, Kiran Mazumdar-Shaw, Luis Alberto Moreno, Lucrezia Reichlin, John-Arne Røttingen, Vera Songwe, Mark Suzman, Tidjane Thiam, Jean-Claude Trichet, Ngaire Woods, ZHU Min, Masood Ahmed, Guntram B. Wolff, Victor J. Dzau and Jeremy Farrar Topic: Global Economics & Governance Date: July 9, 2021
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