Members in the News
January 20, 2015
In an interview with CNBC, Axel Weber, chairman of UBS, speaks about the volatility of the market in 2015 and the state of the Swiss economy. Despite the expectation of the ECB announcing a form of quantitative easing, he warned that “something will give in the end.” In regards to the Swiss economy, he said that the country will experience an impact on growth with UBS downgrading their growth prospects for the next two years.
January 16, 2015
In an interview in Handelsblatt, Christian Noyer, Governor of the Banque de France and member of the Governing Council of the ECB, discusses both the debt level in Greece and the Euro area. He argues that if a government bond buying program was in place, there should be a cap on the percentage of how much is bought, such that financing would primarily be undertaken by the private market. Noyer concludes with a reflection on the role the ECB should have in the future and on his second term as Governor.
- January 2, 2015
- In a Project Syndicate article, Kenneth Rogoff, Professor of Economics and Public Policy at Harvard University, discusses the effectiveness of economic sanctions considering the current state of world affairs. He points out that "the effects of sanctions are often fairly disappointing" but also argues that "sometimes sanctions do work," drawing on the successful sanctions used to help end apartheid in South Africa. Rogoff also comments on the economic and geopolitical situations in Russia and North Korea.
- December 23, 2014
- Adair Turner, Senior Fellow at the Institue for New Economic Thinking, writes about the cost of fossil fuels, the economy, and human welfare in a piece for Project Syndicate. He discusses the economics of alternative energies such as solar power, hydrogen, and biofuels. Furthermore, he argues that "we do not need fossil fuels to support propsperous economies."
- December 9, 2014
- It is with sadness that the Group notes that Karl Otto Pöhl, former President of the Bundesbank and former G30 Member, passed away on Tuesday. Pöhl headed the central bank from 1980-1991 and is credited with defeating the high inflation that hampered Germany in the 1970s and 80s. Pöhl will be remembered for his firm focus on price stability, independence, and growth.
- Born in Hanover in 1929, Pöhl studied economics in Göttingen before becoming involved in government. He is survived by his four children. The leadership and members of the Group of Thirty well remember his active engagement as a member of the G30, and mourn his passing.
- December 4, 2014
- Gail Kelly, CEO and Managing Director of Westpac, has been named as a finalist in Morningstar's 2014 CEO of the Year award. Kelly has been Westpac's CEO for the last six years.
- Morningstar recognizes her for her strong leadership after taking over as CEO during the global financial crisis. Under her guidance, Westpac has steadily increased dividends since the worst of the crisis and Westpac's stock prices have outperformed the ASX 200 by thirty percentage points since February 2008.
- 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.