John Lipsky, first deputy managing director of the International Monetary Fund (IMF), presented the Fund’s views on its role in dealing with the current financial turmoil in capital markets at a Peterson Institute meeting held March 12, 2008.
Turmoil in capital markets continues to spread, heightening concerns about global stability. The forces of economic and financial globalization that underpinned sustained strong growth earlier this decade are producing unprecedented challenges today. There is a growing consensus that a global response is required, but views on the scope and scale of the challenges—and on the needed policy measures—are still evolving. The IMF, with its global membership and its unique responsibility for promoting financial stability and economic growth, has been analyzing potential risks and assessing possible remedies, and is engaging its member countries in a dialogue regarding prospective responses.
Before joining the Fund a year ago, Lipsky was vice chairman of the JPMorgan Investment Bank. In this position, he advised the firm's principal market risk takers, published independent research on the principal forces shaping global financial markets, was actively engaged with JPMorgan's key clients, and represented the firm around the world with senior public and financial sector decision makers. Previously he served as JPMorgan's chief economist and as Chase Manhattan Bank's chief economist and director of research. He served as chief economist of Salomon Brothers, Inc. from 1992 to 1997.