At present, the international financial sector is recovering from the crisis, at the same time, the effectiveness of the global financial system and coordination are also spread suspicion. What we really need a financial system? How to achieve debt re-balance? Financial Crisis will happen again right? In the Sept. 9 at the Oxford Chinese Financial Forum, from the Sino-British financial experts to discuss these issues further, that in the post-crisis era, reconstruction of a new financial system or reform the existing financial system imperative.

Reflection

In 2003, 2004, golden age of rapid economic growth, economists have been talking about the danger of a crisis may occur, but most people refuse to admit that it may become a reality, so in 2007 the crisis did come, it was found global financial system so fragile.

Now the international community again to discuss how to reform the financial system, talking about how to build a new financial system, first to sort out global financial markets today, what is the scene. CASS member Yu Yongding, China World Economic Society, believes that the current financial market rules in the post-Bretton Woods system under control. In this case, some countries, current account deficit is no mechanism to force even after its change this. “After the Bretton Woods system in solution of current account adjustment, it should be said is not particularly successful.” He proposed to reform this system, otherwise the situation can not be optimistic about the future. “If 90 years in the last century will still be maintained, then we can see that, because of this current imbalance in the absence of timely and smooth adjustment of the imbalance situation is now getting worse.”

Transition economists, chief economist and president of the European Bank for Reconstruction and Special Adviser Love that the current international financial system is efficient, does not need to reinvent the wheel, only its necessary improvement. He said the crisis today is called the Great Depression more appropriate. And 30s of last century compared to the Great Depression, the Western economy is undergoing a process of decline.

Bogeluofu that although the initial impact of the crisis during the Great Depression worse than that, but not for long, get in the way when the market intervention. “The big financial institutions, the parent company subsidiaries following the support there are public sector and private sector cooperation is the upcoming Great Depression of the seriousness of the much fall.”

“Some of the worst affected countries are actually relatively low level of financial integration of countries.” Bogeluofu that emerging economies are the winners of this crisis. Several times before the crisis, emerging markets are more affected, but this time of financial crisis, emerging markets have been hit not so much. This shows that in the early stages of this crisis, emerging markets more flexible.

Imbalances in the face of the global debt situation, Yu Yongding that this situation more dangerous, can not long exist, he said, “A nation can not long maintain the current account deficit or the current account surplus. John Maynard Keynes once said, the international income branch imbalance, if not handled properly, could lead to war, or even lead to revolution. “Yu Yongding, a view that the international balance of payments imbalances are not sustainable, such an imbalance to be corrected sooner or later, as a way to correct, if not smooth, fast, and it could be very tragic. If you continue to delay a few years later the situation was no fundamental change, then, is difficult to avoid this tragic situation. The international community must work together again as soon as possible to achieve a balance.

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