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Managing Capital Flows During Current Financial Turbulance and Risks to International Financial Stability

Description (selected)

Paris, France

April 29-May 2, 2008

 

The global economy is in its fifth year of continuous growth.   However, overlapping with the global current account imbalances, the recent credit crunch crises in advanced economies arising from undisciplined sub-prime mortgage loans in the US is likely to have an impact on the global economy.  These sub-prime mortgages have been packaged as securitized assets and sold to major banks and investors (equity and hedge funds) all across the world.   The issue of re-pricing risk and market risk management practices overlaps with that of sub-prime lending and securitization because under-pricing of risk is argued to have spurred demand for such assets.

 

This policy seminar provides cutting edge analysis of the current issues in financial market turbulence and widening global imbalances, coupled with the heightening of risks to financial stability and global economic growth arising from (1) unprecedented hike in oil prices; (2) declining value of US dollar against Euro and other currencies leading to a realignment of major currencies; (3) slowing down of the US economy.  What are the policy options for central bankers and ministers of finance in economic management during such a confluence of rapid global changes? 

 

First, the seminar discusses stylized facts about the capital flows, including the factors determining the external positions and the international currency exposures.  Second, the discussion centers around credit crunch, contagion across countries arising from securitized assets, role of sovereign wealth funds, hedge and equity funds in the ongoing financial turbulence.  Third, the seminar focuses on international financial architecture issues, including implementation of the Basel II recommendations.  Fourth, the discussion is on core subjects, such as currency and banking crises, issues in managing large foreign exchange reserves, exchange rate arrangements and monetary unions.  Finally, risks to financial stability and options for economic management are discussed.

 

Partners: Center for Pacific Basin Monetary and Economic Studies of the Federal Reserve Bank of San Francisco, the Bank of England, and the Banque de France

 

 

Application

This is a fee based senior policy seminar ($2000). To apply, please click here.

 

Contact:

Task Manager:  Raj Nallari

Tel: 1-202-458-4448;   fax 1-202-676-9810

 

Program Assistant:  Maxine Alonso Pineda

Tel:  1-202-473-0884;   email: mpineda1@worldbank.org

 

 




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