Robert Hockett, professor of financial and monetary law at Cornell University Law School, says the long-lasting crisis in the Eurozone, as well as more recent signs of trouble in the Chinese and American economies should be high on the agenda.
Bio: http://www.lawschool.cornell.edu/faculty/bio_robert_hockett.cfm
Hockett says:
“This week's annual Autumn Meeting of the IMF and World Bank in Lima promises to be especially fateful. With the future of the Euro still anything but certain and – more ominously – the prospect of an all-out crash and great depression in China looking increasingly likely, the world's economic leaders will have much to talk about.
“Add to that the signs of slack now showing in the world's sole economic bright spot of the past few months – the U.S. – and the stage is set for serious growth and safety net measures to be proposed, debated, and – we had better hope – quickly implemented.”
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Andrew Karolyi, professor of finance at the Johnson Graduate School of Management, examines the problem of capital outflows from emerging markets ahead of the upcoming International Monetary Fund and World Bank annual meeting in Lima. He agrees with IMF’s Christine Lagarde on the need to have a proactive policy management – especially by emerging economies – but says individual countries present individual challenges.
Bio: https://www.johnson.cornell.edu/Faculty-And-Research/Profile/id/gak56
Karolyi says:
“Time is of the essence. Net capital outflows out of emerging economies are projected to hit $540 billion by year’s end according to the International Institute of Finance, the first year of negative net outflows since 1988. An important fraction of these outflows stems from lingering uncertainty about the U.S. Federal Reserve’s action or inaction on interest rates in 2015. Ironically, the Fed cites turbulence in emerging markets as a reason for their action. A vicious cycle ensues.
“Global investors care about the resiliency of the markets and market institutions that support their investments in emerging economies, but some have stronger institutions than others.
“Many EMs such as China, Indonesia, Russia and Pakistan feature unusually stringent foreign accessibility restrictions, and a far too slow pace of capital account liberalization than others such as Malaysia, South Africa, Chile, and Thailand. Evidence suggests that flows may very well recede more dramatically from those countries that have liberalized their markets more slowly.
“A number of EMs such as China, Colombia, and Venezuela, have weaker corporate transparency and disclosure rules and a much slower pace of corporate governance reforms than others such as Chile, India, and Korea. Flows may very well recede more dramatically in 2015 from those countries with weaker governance reforms.
“Operational inefficiencies hold some EMs like Nigeria, Turkey, and Russia, back from attracting flows relative to other EMs with better exchange trading rules and with more reliable clearance and settlement systems like Korea, Taiwan, and Mexico. Flows in 2015 may be racing to the exits faster in those countries that have not reduced their operational inefficiencies.”
Cornell University has television, ISDN and dedicated Skype/Google+ Hangout studios available for media interviews.
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