What can the G20 and Central Banks do to deal with monetary and financial challenges in context of the COVID-19 crisis while preparing the way to a new normal in monetary policy?

The discussion about ending the exceptional monetary and financial measures and policy strategies adopted after the 2008 Financial Crisis to return to a “new normal” in monetary policy, gained momentum in 2019 both among policy makers and in the academic research circles. Leading central banks started strategic reviews that should have reached conclusions before the end of 2020. These developments reflected advances in theory, empirical evidence and policy experience as well as new concerns about financial stability, income and wealth distribution, and growing global financial interdependence. However, the Covid-19 pandemic has created a new situation. Its economic consequences will persist for a substantial period and will require new special short-term measures by central banks, well-coordinated with fiscal authorities, to stabilize economies and safeguard financial stability; together with a medium-term strategy for phasing out these crisis measures. This panel will discuss monetary and financial strategies for dealing with the economic shocks triggered by the COVID-19 crisis, and what the G20 and do to support these at a time when multilateralism is in crisis and reaching consensus on the coordination of monetary and financial strategy is difficult. How can central banks and financial authorities maintain financial stability while providing the liquidity required for moderating economic shocks? What lessons can (or cannot) be learned in this regard from the global financial crisis in 2008? How can monetary and financial response measures be designed in a way that prepares for an exit strategy in 2-3 years to return onto the path towards a “new normal” in monetary policy? How can the G20 support this while including central banks and fiscal authorities from other countries?

Solution Sessions
Voices of the 2020 Young Global Changers
Ninety young people from around the world were selected to participate in the 2020 Global Solutions Summit as Young Global Changers. These young changemakers from academica, business and civil society contribute and debate in their various working groups on the Summit topics. Watch the video with statements and questions by the YGC Working Group on International Financial Architecture! The Young Global Changers regularly contribute to the Young Global Changers blog. Browse through the YGC blog and read more articles, written by the Young Global Changers’ community.
Policy Briefs
Countercyclical sovereign financing mechanism for EM economies post Covid-19 recovery: opportunities for multilateral action by the G20
Alvin Lumbanraja - Kellogg School of Management, Northwestern University, Evanston IL (USA), Andry Asmoro - Bank Mandiri, Jakarta (Indonesia), Teuku Riefky - University of Indonesia (LPEM FEB UI)
Resetting the global financial safety net for the Covid-19 recovery
Haihong Gao - Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS), José Antonio - Ocampo School of International and Public Affairs (SIPA), Columbia University, New York (USA), Ulrich Volz - SOAS University of London, William N. Kring - Pardee School of Global Studies, Boston University
Policies for managing a wave of sovereign debt crises
Mitu Gulati - Duke University School of Law, Durham (USA), Patrick Bolton - Columbia University, New York (USA), Ugo Panizza - Fondazione Luigi Einaudi, Turin (Italy)
Mitigating and managing the effects of climate change on macro-financial stability and sovereign risk
John Beirne - Asian Development Bank Institute, Tokyo (Japan), Nuobu Renzhi - Capital University of Economics and Business (CUEB), Beijing (China), Ulrich Volz - SOAS University of London
Exiting the Covid global recession: policy proposals
Claudio Morana - CefES University of Milano-Bicocca (Italy), Nuno Cassola - CefES University of Milano-Bicocca (Italy); CEMAPRE University of Lisbon (Portugal), Patrizio Tirelli - University of Pavia (Italy); Griffith University, Brisbane (Australia),
Addressing governance in the token tconomy
Alejandro Garofali - Pica European Institute of International Studies (EIIS), Stockholm (Sweden), Jonathan Violante - Pica European Institute of International Studies (EIIS), Stockholm (Sweden)
A world recovery fund to overcome developing countries post-Covid debt woes?
Alicia García Herrero - Bruegel, Hong Kong University of Science and Technology, and NATIXIS.
Using risk securitization to ensure against pandemic-related risk
Steven L. Schwarcz - Duke University School of Law, Durham (USA)
The need for a development-centred climate change policy at the International Monetary Fund
Amar Bhattacharya - Brookings Institution, Kevin P. Gallagher - Global Development Policy Center, Boston University, USA, Laveesh Bhandari - Center for Social and Economic Progress (CSEP), New Delhi (India), Marilou Uy - Intergovernmental Group of Twenty-Four (G24), Rishikesh Ram - Bhandary Global Development Policy Center, Boston University (USA), Toby Melissa C. Monsod - University of the Philippines and Financial Futures Center, Manila (Philippines)
The emergence of new monies and the need to prepare the financial system for the digital age
Claude Lopez - Milken Institute, José Siaba Serrate - Argentine Council for International Relations CARI
International standards and the role of central banks in global financial governance
Daniel Bradlow - Centre for Human Rights, University of Pretoria (South Africa), Stephen Park - University of Connecticut (USA)
Ensuring ESG impact: four actionable recommendations for a dependable path
Claude Lopez - Milken Institute, José Siaba Serrate - Argentine Council for International Relations CARI
Expanding the global financial safety net
Haihong Gao - Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS), José Antonio Ocampo - School of International and Public Affairs, Columbia University, Kevin P. Gallagher - Global Development Policy Center, Boston University, USA, Ulrich Volz - SOAS University of London, William N. Kring - Pardee School of Global Studies, Boston University
Covid-19 crisis: How should the G20 support heavily indebted low-income countries?
Abebe Shimeles - African Economic Research Consortium (AERC), Kathrin Berensmann - German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), Njuguna Ndung’u - African Economic Research Consortium (AERC)
Assessing the impact of stablecoins on the international monetary system: G20 and IMF to study the impac of Facebook’s libra project
Bertrand Rioux - King Abdullah Petroleum Studies and Research Center (KAPSARC), Eiji Ogawa - Tokyo Keizai University, Fatima Yousef Al Sabaie - Bahrain Center for Strategic International and Energy Studies, José Siaba Serrate - Argentine Council for International Relations CARI
Time to implement a tech-driven sovereign debt transparency initiative: Concept, design, and policy actions
Emilios Avgouleas - School of Law, University of Edinburgh, Rym Ayadi - Euro-Mediterranean Network for Economic Studies (EMNES), CASS Business School
Monitoring countrie’s commitment against illicit financial flows
Aitor Pérez - Elcano Royal Institute, Gerardo Rodríguez - Universidad de las Américas Puebla
Digital money is here: G20 (Thinking) must go digital. A systemic agenda is necessary to steer the risky transition process and reap long-term benefits
Claude Lopez - Milken Institute, Halit Ünver - Research Institute for Applied Knowledge Processing, University of Ulm, José Siaba Serrate - Argentine Council for International Relations CARI, Pavel Trunin - Gaidar Institute for Economic Policy, Sergey Drobyshevsky - GAIDAR Institute for Economic Policy
Bigtech companies: An inclusive and global regulatory framework is needed
Claude Lopez - Milken Institute, José Siaba Serrate - Argentine Council for International Relations CARI
Monetary policies, strategies, and the Covid-19 crisis
Franco Bruni - Bocconi University Milan, José Siaba Serrate - Argentine Council for International Relations CARI
Coordinated and comprehensive fiscal and monetary stimulus for tackling the Covid-19 crisis
Jean Dong - Australia-China Belt and Road Initiative, Naoyuki Yoshino - Financial Research Centre, FSA Institute, Nella Sri Hendriyetty - Center for Regional and Bilateral Policy, Ministry of Finance Indonesia, Peter J. Morgan - Asian Development Bank Institute (ADBI)
Monetary Policies Strategies and the COVID-19 Crisis
Franco Bruni - Bocconi University Milan, José Siaba Serrate - Argentine Council for International Relations CARI
Digital Money Is Here: G20 (‘s Thinking) Has To Go Digital, Too
José Siaba Serrate - Argentine Council for International Relations CARI, Claude Lopez - Milken Institute, Halit Ünver - Research Institute for Applied Knowledge Processing, University of Ulm, Pavel Trunin - Gaidar Institute for Economic Policy, Sergey Drobyshevsky - GAIDAR Institute for Economic Policy
Commentaries and Articles
T20 Recommendations Report: International Financial Architecture for Stability and Development
Compiled by Dennis Görlich (IfW Kiel), Katharina Lima de Miranda (IfW Kiel) and Juliane Stein-Zalai (IfW Kiel)
A Coordinated, Unlimited and Flexible Insurance Policy to Respond to the Pandemic
By Gonzalo García-Andrés (Elcano Royal Institute)
Supply and Demand Shocks in the COVID-19 Pandemic: An Industry and Occupation Perspective
By Anton Pichler, François Lafond, J. Doyne Farmer, R. Maria del Rio-Chanona, Penny Mealy (University of Oxford – Institute for New Economic Thinking)
Realizing the low-carbon future – Global Solutions Journal
Green finance in emerging markets – Global Solutions Journal
Vas-Y: Public-privatepartnership model for unlocking private investment for fragile states – Global Solutions Journal
EU solidarity in exceptional times: Corona transfers instead of Coronabonds
By Daniel Gros (CEPS)
This is what the economic fallout from coronavirus could look like
By Nouriel Roubini (Stern School of Business)
The economic, political and moral case for a European fiscal policy response to COVID-19
By Thorsten Beck (Cass Business School)
The Greater Trade Collapse of 2020: Learnings from the 2008-09 Great Trade Collapse
By Richard Baldwin (Graduate Institute Geneva)
COVID-19 and global capital flows
OECD Policy Responses to Coronavirus (COVID-19)

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