Past Event

The euro-zone crisis and its impact on the global economy

This event was co-organised by Bruegel and the Korea Institute of Finance, as part of the project "Public diplomacy, policy research and outreach devoted to the European Union and EU-Korea relations". Agenda here 15 January (Tuesday) 19:00-20:30 Welcoming Dinner Venue: Seoul Royal Hotel 16 January (Wednesday) 9:30-9:50 Opening Remarks Chang-Hyun Yun, President, Korea Institute of […]

Date: Jan 16 - Topic: Macroeconomic policy

This event was co-organised by Bruegel and the Korea Institute of Finance, as part of the project "Public diplomacy, policy research and outreach devoted to the European Union and EU-Korea relations".

Agenda here

15 January (Tuesday)

19:00-20:30 Welcoming Dinner

Venue: Seoul Royal Hotel

16 January (Wednesday)

9:30-9:50 Opening Remarks

  • Chang-Hyun Yun, President, Korea Institute of Finance, Korea
  • Guntram B. Wolff, Deputy Director, Bruegel, Belgium
  • Tomasz Kozlowski, Ambassador & Head, Delegation of the European Union to the Republic of Korea

9:50-10:00 Keynote Speech

  • Je-Yoon Shin, First Vice Minister, Ministry of Strategy and Finance, Korea

10:0012:00 Session 1: Anatomy of the Euro-zone Crisis (Why did it happen?)

The crisis of the euro area has revealed specific problems related to public finance sustainability and resolution of sovereign debt crises, excessive imbalances and competitiveness problems, the difficulties in supporting economic growth in countries that became under market pressure, asset price divergences and private sector debt accumulation, discrepancy between banking sector integration and the weaknesses of the EU framework for regulation, supervision, and crisis resolution, and the difficulties in making prompt and effective euro-area wide policy decisions. Which were the main causes of the crisis and what would be the ideal solutions to these issues?

Chair: Jung-Sik Kim, Professor, Economics Department, Yonsei University

Speakers:

  • Joon-Ho Hahm, Professor/Director, Center for International Studies, Yonsei University, Korea – presentation here
  • Myong-Hwal Lee, Senior Research Fellow/Director, Korea Institute of Finance, Korea- presentation here
  • Benedicta Marzinotto, Research Fellow, Bruegel, Belgium -presentation here
  • Stephanie Riso, Head of Unit, Fiscal Policy and Surveillance, DG ECFIN, European Commission -presentation here

12:00-13:00 Lunch Break

13:00-15:00 Session 2: Analysis of the Responses to the Euro-zone Crisis (What has been done?)

A large number of institutional changes were triggered by the euro crisis, such as various new agreements on policy surveillance, coordination, rule-enforcement, and financial assistance. The European Central Bank also introduced decisive measures to support the banking sector, as well to ease the tensions of government bond markets. How adequate were these measures – in light of the institutional and political constraints of the euro-area? At the same time market participants, and in particular, banks also responded to the crisis. Direct exposure of banks to distressed euro-area sovereigns deteriorates bank balance sheets, thereby making it more difficult for the bank to supply sufficient credit. Major turbulence in the banking sector of a euro-area country, not to mention a possible exit of a country form the euro-area, can easily lead to financial mayhem even outside the euro area due to the high-level financial linkages. What are the banks’ strategic responses to the Euro-zone crisis and how can they finance the economy under such risks?

Chair: Guntram B. Wolff, Deputy Director, Bruegel, Belgium

Speakers:

  • Zsolt Darvas, Research Fellow, Bruegel – presentation here
  • Mansoo Jee, Research Fellow, Korea Institute of Finance, Korea – presentation here
  • Jaewoo Lee, Chief Korea Economist, Bank of America Merrill Lynch – presentation here
  • Bart Oosterveld, Managing Director, Head of Sovereign Risk Group, Moody’s Investors Service – presentation here

15:00-15:15 Coffee Break

15:15-17:15 Session 3: The Future of European and Asian Economies after the Euro-zone Crisis (What to do going forward?)

Given the size and the importance of the euro-area in trade and financial linkages, the resolution of the euro-area crisis can have major repercussions on other economies in the world, including in Asia. What are the politically realistic scenarios for the resolution of the euro-area countries? What lessons can be drawn from the Japanese lost decade and the aftermath of the 1997/98 Asian crisis for Europe? How did authorities in Asia respond to the euro-area crisis and what are the prospects for Asia considering alternative scenarios for the euro-area crisis?

Chair: Gongpil Choi, Senior Advisor, Korea Institute of Finance, Korea

Speakers:

  • Bon-Sung Gu, Senior Research Fellow/Director, Korea Institute of Finance, Korea – presentation here
  • Masahiro Kawai, Dean, Asian Development Bank Institute
  • John Junggun Oh, Professor, Economics Department, Korea University, Korea- presentation here
  • Guntram B. Wolff, Deputy Director, Bruegel, Belgium- presentation here

17:15-17:25 Closing Remarks

Guntram B. Wolff, Deputy Director, Bruegel, Belgium

18:00 Casual Dinner (on invitation only)

This event will be held as part of an 18-month project on ‘EU-Korea policy responses to the global financial and economic crisis and the scope for internationalisation of the financial services industry’ that has received a grant from European Commission budget line 19.05.01 ‘Public Diplomacy, Policy Research and Outreach Devoted to the European Union and EU-Korea Relations’. Opinions expressed are the authors’ alone.

Read about event More on this topic
 

Upcoming Event

May
25
14:30

How can we support and restructure firms hit by the COVID-19 crisis?

What are the vulnerabilities and risks in the enterprise sector and how prepared are countries to handle a large-scale restructuring of businesses?

Speakers: Ceyla Pazarbasioglu and Guntram B. Wolff Topic: Macroeconomic policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event More on this topic
 

Upcoming Event

May - Jun
31-1
10:30

MICROPROD Final Event

Final conference of the MICROPROD project

Speakers: Carlo Altomonte, Eric Bartelsman, Marta Bisztray, Italo Colantone, Maria Demertzis, Filippo di Mauro, Wolfhard Kaus, Steffen Müller, Gianluca Santoni, Verena Plümpe, Andrea Roventini, Valerie Smeets, Nicola Viegi, Markus Zimmermann and Javier Miranda Topic: Macroeconomic policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event
 

Past Event

Past Event

[Cancelled] Shifting taxes in order to achieve green goals

[This event is cancelled until further notice] How could shifting the tax burden from labour to pollution and resources help the EU reach its climate goals?

Speakers: Niclas Poitiers and Femke Groothuis Topic: Green economy, Macroeconomic policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 12, 2022
Read about event More on this topic
 

Past Event

Past Event

How are crises changing central bank doctrines?

How is monetary policy evolving in the face of recent crises? With central banks taking on new roles, how accountable are they to democratic institutions?

Speakers: Maria Demertzis, Benoît Coeuré, Pervenche Berès, Hans-Helmut Kotz and Athanasios Orphanides Topic: Macroeconomic policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 11, 2022
Read article Download PDF More by this author
 

Book/Special report

European governanceInclusive growth

Bruegel annual report 2021

The Bruegel annual report provides a broad overview of the organisation's work in the previous year.

By: Bruegel Topic: Banking and capital markets, Digital economy and innovation, European governance, Global economy and trade, Green economy, Inclusive growth, Macroeconomic policy Date: May 6, 2022
Read article Download PDF
 

Policy Contribution

European governance

Fiscal support and monetary vigilance: economic policy implications of the Russia-Ukraine war for the European Union

Policymakers must think coherently about the joint implications of their actions, from sanctions on Russia to subsidies and transfers to their own citizens, and avoid taking measures that contradict each other. This is what we try to do in this Policy Contribution, focusing on the macroeconomic aspects of relevance for Europe.

By: Olivier Blanchard and Jean Pisani-Ferry Topic: European governance, Macroeconomic policy Date: April 29, 2022
Read article Download PDF More on this topic
 

Working Paper

The low productivity of European firms: how can policies enhance the allocation of resources?

A summary of the most important policy lessons from research undertaken in the MICROPROD project work package 4, related to the allocation of the factors of production, with a special focus on the weak dynamism of European small and medium-sized enterprises (SMEs).

By: Grégory Claeys, Marie Le Mouel and Giovanni Sgaravatti Topic: Macroeconomic policy Date: April 25, 2022
Read article More on this topic
 

External Publication

What drives implementation of the European Union’s policy recommendations to its member countries?

Article published in the Journal of Economic Policy Reform.

By: Konstantinos Efstathiou and Guntram B. Wolff Topic: Macroeconomic policy Date: April 13, 2022
Read article Download PDF More on this topic More by this author
 

Working Paper

Measuring the intangible economy to address policy challenges

The purpose of the first work package of the MICROPROD project was to improve the firm-level data infrastructure, expand the measurement of intangible assets and enable cross-country analyses of these productivity trends.

By: Marie Le Mouel Topic: Macroeconomic policy Date: April 11, 2022
Read about event More on this topic
 

Past Event

Past Event

Macroeconomic and financial stability in changing times: conversation with Andrew Bailey

Guntram Wolff will be joined in conversation by Andrew Bailey, Governor of the Bank of England.

Speakers: Andrew Bailey and Guntram B. Wolff Topic: Macroeconomic policy Date: March 28, 2022
Read article
 

Opinion

European governance

How to reconcile increased green public investment needs with fiscal consolidation

The EU’s ambitious emissions reduction targets will require a major increase in green investments. This column considers options for increasing public green investment when major consolidations are needed after the fiscal support provided during the pandemic. The authors make the case for a green golden rule allowing green investment to be funded by deficits that would not count in the fiscal rules. Concerns about ‘greenwashing’ could be addressed through a narrow definition of green investments and strong institutional scrutiny, while countries with debt sustainability concerns could initially rely only on NGEU for their green investment.

By: Zsolt Darvas and Guntram B. Wolff Topic: European governance, Green economy, Macroeconomic policy Date: March 8, 2022
Read article More on this topic More by this author
 

Opinion

The week inflation became entrenched

The events that have unfolded since 24 February have solved one dispute: inflation is no longer temporary.

By: Maria Demertzis Topic: Macroeconomic policy Date: March 8, 2022
Load more posts