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Past Event

A Global Economy and Development Event

Perspectives on the Global Economic Landscape

Global Economics, Monetary Policy, Emerging Markets, Competitiveness, Financial Markets


Event Summary

The global economic landscape is changing, reflecting the U.S. financial crisis and unresolved global imbalances. Advanced economies are faltering, while emerging market economies continue expanding. Currencies have moved sharply, and the U.S. dollar has depreciated considerably, leading some to even question the dollar’s future as a reserve currency.

Event Information

When

Tuesday, July 22, 2008
10:30 AM to 12:00 PM

Where

Falk Auditorium
The Brookings Institution
1775 Massachusetts Ave., NW
Washington, DC
Map

Contact: Brookings Office of Communications

E-mail: events@brookings.edu

Phone: 202.797.6105

On July 22, Global Economy and Development at Brookings hosted John Lipsky, first deputy managing director of the International Monetary Fund, for a conversation on the evolving global economic landscape. Lipsky will provide a perspective on the economic outlook and the role of currencies in the global economy.

Following Lipsky’s remarks, an expert panel will discuss the challenges confronting the global economy and the financial markets in greater detail. Panelists include David Lipton, head of global country risk management for Citigroup, and Domenico Lombardi, Brookings nonresident senior fellow and president of The Oxford Institute for Economic Policy. Lael Brainard, vice president and director, Global Economy and Development and Bernard L. Schwartz Chair in International Economics, will provide introductory remarks and moderate. After the program, panelists will take audience questions.

Read the speech by John Lipsky »

Transcript

JOHN LIPSKY: In the 1985 to '91 episode of dollar depreciation, there really was no viable alternative to the dollar as the sole reserve currency. The Japanese, German, and U.K. economies were much smaller than that of the U.S., and their financial markets were less developed and far less liquid.

Today, the euro area economy is of a similar size to that of the United States. Each accounts for roughly a quarter of world GDP, based on market exchange rates. Its financial markets are deep and liquid, although not yet equivalent to that of the United States in that regard, and it accounts for a large share of world trade. Thus, while the dollar will not be replaced as the dominant international currency, it is quite likely that, eventually, the dollar will begin to share this role with the euro.

Participants

Introduction and Moderator

Lael Brainard

Vice President and Director, Global Economy and Development

Featured Speaker

John Lipsky

First Deputy Managing Director
International Monetary Fund

Panelists

Domenico Lombardi

Nonresident Senior Fellow, Global Economy and Development

David Lipton

Head, Global Country Risk Management
Citigroup


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