In late May, the Oxford Martin School’s Director, Professor Ian Goldin, joined the Group of Thirty to discuss current major challenges facing the global financial system.
The Group of Thirty is a non-profit, international organisation, which brings together leaders from private and public sectors. It aims to deepen understanding of international economic and financial issues, to explore the international repercussions of decisions taken in the public and private sectors, and to examine the choices available to business and policymakers.
Under the leadership of Jean-Claude Trichet - the former head of the European Central Bank - and hosted by Christian Noyer, Governor of the Banque de France, the meeting was attended by central bankers from leading economies; chairmen of global private sector banks; current and former heads of international financial institutions, and a small number of leading academics.
Professor Goldin, together with Nobel Laureate Professor Paul Krugman, led a session on the future of globalisation. Ian drew on his recent book, The Butterfly Defect, to argue that systemic risk is endemic in globalisation but that countries should be wary of becoming risk averse. He shared his insights into why governments, international bodies and businesses alike need to improve their understanding and management of systemic risk in order to prevent greater inequality and to facilitate sustainable growth. Professor Goldin, pictured above with French Prime Minister Manuel Valls, showed how nationalism and protectionism is a real threat, with recent elections demonstrating a desire of many to retreat from further globalisation. The book and its arguments were well received and led to an extensive discussion of the issues raised.