On the future of Euro currency
Original article by Monica Dorhoi
Often times I am asked to explain my economic thinking on how to fix the world economy.
Few minutes ago I was reading a headline from Fortune from October 10, 2016 where the headline said everything “Jamie Dimon Thinks the Euro Is Doomed”
I could not say enough to contradict it.
A day earlier I attended the meeting of the Euro50 group held in Washington DC during a major annual banking convention. I could not disagree more with Mr. Jamie Dimon as my former mentor Andrew Crockett the former President of the Bank of International Seetlement would too.
Impressive and challenging to the audience as topic was, the reponse was up to par. Notable are the comments of Paul Tucker, the former Deputy Central Banker of the Bank of England now professor at Harvard University.
“Without a doubt” Tucker stated that “the Brexit is an adverse event and is the greatest recorded threat in the economic integration.” The also stressed that the “Capital markets integration is not working”.
On the future of the European integration
“Without a doubt, it is clear that Turkey will never be allowed in the European Union” Tucker also stated, “in spite of the numerous reactions.”
On the European legal system as obstacle to the Euro
Tucker repeatedly stressed that the European Union rule of the Supreme Court is the European Court of Justice and is not accepted in UK. The decisions of UK are made by judges and not by panels of jurors and UK will never be able to accept the European Court of Justice.
He clearly spelled out how the Bank of England plans to mange its currency and if the so-called Brexit negative influences were to come into play, they will be dealt as part of the original response. Although the different responses were discussed ahead a new relationship UK and EU it is the political uncertainty that dominated the agenda and the downgraded forecast growth rate was lowered from 3.5% and 2%.
The Bank of England to respond accordingly will have to craft a new relation UK and EU, where the EU as the common framework will not be a viable option.
To the extent EU-UK comes into play the harmonization of the system is essential even going forward for a successful Euro currency.
On financial failures
by Dr. A Monica Dorhoi
I remember it even now. Vividly. Ice cream cone in hand while passing by Lehman Brothers HQ in September 2008, while their staff were rushing out of the building leaving for the day … or good …and caring with themselves cardboard boxes. it was serendipity of timing.
As an international financial regulator I was watching in dismay. My ice cream looked good and wanted to say, go back in the building. Let’s fix it. And soon after that we did it.
The story of the financial implosion of 2008 is described with a very fresh point of view in my latest book. So is the rescue that ensued – the so called bailout by the different financial authorities on behalf of the shareholders.
Every time I participated into fixing global financial debacles, I kept on saying to myself that I was born to understand things. And I still believe it. It came naturally for me to specialize on financial disasters, crises and rapid response.
Read my latest book on the topic “Results and Performance of the World Bank Group of 2012 (2013) World Bank Independent Evaluation Group, Washington DC”
Are we there now again?
No. We are not.
About Monica Dorhoi, PhD
Dr. A. Monica Dorhoi is an anticorruption expert celebrating in 2015 a decade since she was awarded PhD degree in anticorruption and economics. Hundreds of studies and books have now as foundation this seminal dissertation. Her award winning PhD dissertation is called [precise quote]: “Anti-corruption Strategies and Fighting Corruption in Central and Eastern Europe, Ph.D. Dissertation, Michigan State University, July 2005”
Dr A Monica Dorhoi has worked on benchmarking the income and asset disclosure standards in 78 countries. The work is documented in one of the most influential books in the field.
Since 2010, she is also a proud meditation teacher and Chair of the World Bank/IMF Staff Meditation Club (international staff). The international appointment is one of the highest in the corporate world supporting meditation.
See latest articles of Monica Dorhoi at mdorhoi.wordpress.com