Geneva Report launch: Much Money, Little Capital, and Few Reforms

Authors Stijn Claessens and Beatrice Weder di Mauro present the key findings of the 27th Geneva Report on the World Economy, Much Money, Little Capital, and Few Reforms: The 2023 banking turmoil. Stefan Ingves (Toronto Centre; Former Governor, Sveriges Riksbank) shares his remarks on the report as well.

The report highlights that despite much post–global financial crisis reform, large funding vulnerabilities emerged due to expansionary monetary policies, particularly in the United States. As interest rates rose, these fragilities triggered solvency concerns and led to large liquidity withdrawals last year. These fragilities persist due to incomplete regulations. Structural inefficiencies in banking systems remain significant, notably in Europe, with many banks lowly valued. And globally the resolution regime for systemic banks proved to be inadequate. To address these challenges, the report calls for more integrated economic and financial stability policies, improved supervisory powers and coordination, and more robust recovery and resolution regimes.

A discussion with the audience moderated by PIIE president Adam S. Posen follows. This event is part of PIIE’s Macro Week 2024.

PRESENTERS

Stijn Claessens 
Executive Fellow, Yale School of Management

Beatrice Weder di Mauro 
President, Centre for Economic Policy Research (CEPR); André Hoffmann Chair of Economics, Climate, and Nature Finance, Geneva Graduate Institute

DISCUSSANT

Stefan Ingves 
Chair, Board of Directors, Toronto Centre; Former Governor, Sveriges Riksbank

MODERATOR

Adam S. Posen 
President, PIIE