Members in the News

  • November 21, 2014
  • Mario Draghi, President of the European Central Bank, gave the keynote speech on Friday for the Frankfurt European Banking Conference. Draghi gave an analysis of the economic situation the Euro area is facing and the ECB's monetary policy response. Draghi emphasized the issue of inflation, stating that a long period of too low inflation can embed in inflation expectations, and that firm anchoring of expectations is needed. As a result, Draghi expects the Eurosystem's balance sheet to expand to early 2012 levels.
  • Turner on Credit-Fueled Growth
  • November 10, 2014
  • Adair Turner, Senior Fellow at the Institue for New Economic Thinking, writes on the end of Germany's credit-fueled expansion, and the dangers of attempting to continue credit backed growth. Turner concludes that stimulating growth and increasing inflation without generating higher private or public leverage is critical, and that the only way to do so is to run increased fiscal deficits, permanently financed by central-bank money. According to Turner, growth fueled by increases in leverage only delays the problem and makes it worse in the end.
  • Feldstein on Mexico's Energy Reforms
  • October 28, 2014
  • Martin Feldstein, Professor of Economics at Harvard University, writes in Project Syndicate that Mexico is poised to become Latin America's economic star in the coming decade. Reorganization of state-owned energy companies will accelerate technological acquisition and help Mexico access untapped resources. The engery reforms will also allow Mexico to accesslow-cost gas from Canada, potentially resulting in a 20% decrease in electricty costs for Mexican manufacturers.
  • Summers' Working Paper on Chinese Growth
  • October 22, 2014
  • Lawrence Summers, professor at Harvard and G30 member, along with Lant Pritchett, recently published a working paper for the National Bureau of Economic Research on Chinese growth and potential slowdown. Summers states that, historically, periods of rapid growth are rarely persistent. Developing nations often face discontinuous drop-off in growth druing greater periods of rapid growth.
  • Dudley: Restoring Confidence in Reference Rates
  • Ocbtober 3, 2014
  • In a speech at the New York University Stern School of Business, William C. Dudley, President of the Federal Reserve Bank of New York, gave a talk on the history, purpose, and practice of reference rates, specifically focusing on LIBOR. Dudley concludes that LIBOR had design weaknesses and incentive structures that encouraged manipulation and conflicts of interest. To restore confidence in these rates, Dudley suggests that the definition of LIBOR should be broadened to more accurately reflect large bank funding patterns, and an alternative reference rate should be created for transactions like interest rate derivatives.
  • Carney on Insurance and Finance
  • September 25, 2014
  • Mark Carney, Governor of the Bank of England, delivered a speech to the Institute and Faculty of Actuaries on putting the right ideas into practice. In addition to suggesting that interest rates will begin to rise in the near future, Carney says that tailored captial standards that promote a level playing field, new frameworks to hold insurers accountable, and robust global standards for global systemic insurers are all needed now to preserve the role of insurance in the global financial system.
  • Draghi Speaks on European Growth
  • September 16, 2014
  • In the keynote speech for the Eurofi Financial Forum, President of the European Central Bank and G30 member, Mario Draghi, spoke on European growth and prospects for the future. Draghi stated that no monetary or fiscal stimulus can be succesful unless accompanied by regulation that fosters growth. Declines in investment must be countered by a regulatory environment favorable to growth, and by diversifying sources of financing for companies.
  • Rogoff Discusses the Death of Inflation
  • September 8, 2014
  • In an opinion piece for Business Standard, G30 member and professor of Public Policy and Economics at Harvard, Kenneth Rogoff, dicusses whether or not inflation is truly dead. Rogoff suggests that inflation is a social choice instead of a technocratic one, and warns that many of the political and social factors that have restricted inflation in the past are now retreating. Inflation, while dormant now, may return in the future.
  • Summers on Secular Stagnation
  • September 7, 2014
  • In an article written for Financial Times, G30 member and Charles W. Eliot University Professor at Harvard University, Lawrence Summers, suggests that bold reform may the only solution secular stagnation in the United States. Summers writes that active support for demand will be neccessary, but ultimately insufficient at achieving growth of even 2 percent over the next decade. Summers argues that bold structural reform, such as infrastructure investment and immigration reform, will be essential in increasing the productivity and size of our labor force.
  • Hildebrand on the European Central Bank
  • August 18, 2014
  • In an article in the Financial Times, G30 member and Vice Chairman of BlackRock, Philipp Hildebrand discusses monetary policy in the eurozone and warns that the European Central Bank should not follow the example of the Federal Reserve in their quantative easing measures. Mr. Hildebrand emphasizes that the problems with the ECB are structural and that Europe needs to fix its banking system in order to facilitate economic growth.
  • Rajan Discuses Financial Inclusion in India
  • August 11, 2014
  • In a speech, G30 member and Governor of the Reserve Bank of India, Raghuram Rajan speaks about the perils of crony capitalism and offers a solution, India‚Äôs new plan to increase financial inclusion. Rajan argues that improving financial inclusion through cash transfers to the poor will empower the poor and force providers to improve their services through competition, eventually breaking the cycle of corruption and poor public services.

Member Publications

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  • Long-term Finance and Economic Growth
  • 2013
  • The report examines critical constraints on the supply of long-term finance and calls for reforms that can strengthen the flow of capital into long-term investments by governments, institutional and individual investors.