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Crisis Response: Different Aspects. Dr. Jacob A. Frenkel Chairman, JPMorgan Chase International Chairman, Group of Thirty (G30 ) Former Governor, Bank of Israel. S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L. Panel Discussion II
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Crisis Response: Different Aspects Dr. Jacob A. Frenkel Chairman, JPMorgan Chase International Chairman, Group of Thirty (G30) Former Governor, Bank of Israel S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L Panel Discussion II The Seventeenth Dubrovnik Economic Conference Croatian National Bank Dubrovnik, June 29-July 2. 2011
Global Imbalances • Imbalances in International Payments • Imbalances in Macro Policies • Imbalances in the Euro-System
International Payments Imbalances • Current Accounts Imbalances • Who Holds US Treasuries? • International Reserves • Savings Imbalances
Current Account of Balance of Payments US$ billions, 2011
Imbalances in Macro Policies • Global Interest Rate Cuts • Nominal and Real Interest Rates • Central Bank’s Balance Sheets • Fiscal Deficits and Public Debt
Federal Reserve Balance Sheet Assets: Total Assets & Security Holdings
Imbalances in the Euro-System • Unemployment & Productivity • Budget Deficits and Public Debt • Savings and Payments Imbalances • Spreads, CDS, and Banks • “Bad Zones” and the Crisis
Fiscal Position: General Government Balance – Select Euro Area Economies
Change in Gross National Saving Rate: Select European Counties (2000 – 2010)
Change in Gross National Saving Rate: Select European Counties (2000 – 2010) Change between 2000-2007 Change between 2007-2010
Bank Holdings of Domestic Government Securities (% of total bank assets)
Gross National Saving Rate and Budget Deficit (% of GDP 2010)
Gross National Saving Rate and Budget Deficit (% of GDP 2010)