World’s Top Financial Experts Lecture on Crisis Solutions wkf2011 l 2011.08.09

Mahmoud Mohieldin, Naoyuki Shinohara, Xia Bin,
Alexander Huberts, Andrei Shleifer (left to right,
up to down)

The first ever downgrade of US credit ratings sent a wave of panic across global investors, and triggered the collapse of financial markets in the US, Asia, and rest of the world. With so much at stake, the financially-battered US can no longer make unilateral decisions on its next move.

The dilemma confronting the once-proud world’s largest economy - monetary expansion or austerity - is a particularly tricky one with potentially disastrous results. A third round of quantitative easing (QE) could risk further downgrading of the nation’s credit rating, while a misguided debt reduction and excessive belt-tightening can direct the US to follow in the footsteps of Japan’s lost decades.

All would be solved if the US regains its sturdy growth from years earlier, but no one has their hopes high for such a miracle. If the US is unable to save itself, the only others capable of stepping in are the International Monetary Fund (IMF), the World Bank (WB), and the People’s Bank of China (PBC).

In view of recent turmoil, Maeil Business Newspaper invited chief specialists from the IMF, the WB, and the PBC to the 12th World Knowledge Forum to shed light on solutions that can stave off another round of financial crisis. The list of distinguished speakers will include Mahmoud Mohieldin, Managing Director of the World Bank and former Minister of Investment of Egypt; Naoyuki Shinohara, Deputy Managing Director of the IMF; Xia Bin, member of the monetary policy committee of the PBC most renowned for his critical view on economic realities; Alexander Huberts, President of Investments and Finance at BNY (Bank of New York) Mellon Corp, the world’s largest custody bank, most well known for his new policy of charging service fees instead of interests for large deposits; and Professor Andrei Shleifer of Harvard University, most well known for his analysis of investor behaviors in relation to financial crises.

[2011.08.10 Written by Hyun-gyu Shin - Samji Chung / edited by Soyoung Chung]

[ⓒ Maeil Business Newspaper &, All rights reserved]