On October 25th visitors of Baltic Investors Forum will have a chance to witness economic duel of the age. Highly respected economist Dr. Nouriel Roubini, presenting western attitude, will be challenged by the most prominent Japanese economist Richard C. Koo joining the panel for discussion. These two foremost global economy stars along with other experts unexpectedly will meet at a round table discussion about balanced economic policies and secure financial systems. The discussion will be moderated by Vendeline von Bredow, Deputy Editor of The Economist.
“U.S. and Europe are facing an extremely rare type of recession, which is driven by the private sector debt and liabilities minimization. This form of the recession is still relatively little known for professionals of the economy, leading to different points of view on what steps in developing economic policies should be taken by each states”,- notes Richard C. Koo.
According to him, thankfully, Japan, unlike Western countries, has already faced this kind of economic problem 15 years earlier. Similarly to this tricky situation, Japan has faced with full ineffectiveness of fiscal and monetary policy when the private sector is minimising debt instead of maximising profits. Famous economist, notes that it is not difficult to explain euro zone situation taken in mind reasons of this type of recession. Maastricht Treaty did not foresee possibility of this kind of recession and protection tools to prevent it. According to R. C. Koo, Spain would be able to catch up with Germany, which has chosen successful solution to the recession, in 2015, Greece – 2016 and Portugal – only in 2018, having in mind current prognosis.
“European economies must recognize their lengthy structural weaknesses and strive for a more sustainable development models regarding aging population and therefore changing labor market”, – states dr. N. Roubini. According to him, in those countries where during pre-crisis period consumption and investment to spheres, which are unrelated to trade, were encouraged, macroeconomic policy should promote export and international competitiveness. According to N. Roubini, such changes can already be seen in the Baltic region.
Richard C. Koo is the Chief economist at Nomura Research Institute, a visiting professor at Waseda University, many times elected as most reliable Japanese economist. Currently he is serving as a Senior Advisor to Center for Strategic and International Studies (Washington D.C.). His latest book “The Holy Grail of macroeconomics – lessons from Japan’s Great Recession” has been translated into four languages.
Baltic Investors Forum is an international forum, which aims to promote business development, improve investment environment and discuss future prospects. The two-day event will become a Baltic countries business connector and bring together key decision-makers in the Baltic region: global and regional economic experts, state and business leaders, academicians, international and local media.
Registration for the event is on up until October 15th , 2012. Register here:
http://bif.investorsforum.lt/en/home/registration