Members in the News

  • 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.
  • 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.

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