An evening of monetary policies and networking at fpmi inside
05. May 2010, Munich Financial Centre Initiative
Renowned speakers and anything-but-small talk among and with financial high-potentials and experts: this lively mix characterized the second fpmi inside. Held on April 22, 2010, the get-together featured a kickoff speech by Alois Müller, president of the Munich office of the Deutsche Bundesbank.
The first fpmi inside was held on November 2009 by Munich Financial Center Initiative (which is known by its German abbreviation of “fpmi”). The get-together was attended by the high potentials and experts dispatched by their financial companies’ executive or managing directors to attend it. April’s event followed the same format. It was held on the premises of the Munich Stock Exchange, which are located on Munich’s Karolinenplatz square. Some 80 guests were in attendance.
The evening was kicked off by words of welcome from Christine Bortenlänger, speaker of fpmi and member of the managing board of the Munich Stock Exchange, and by a lecture from Alois Müller on “Monetary policies: the challenges to be mastered in the crisis”. In her talk, Bortenlänger had cited several of the many opinions on this subject. The opinions’ common denominator: the view that monetary policymakers had faced challenges of an import last seen in the 1903’s. Müller preferred to see the policymakers as having dealt with a “great responsibility”. Comprising the resorting to “unusual measures” by the Eurosystem and other central banks, their efforts had led to a substantial regaining of stability on financial markets and in economies as a whole. The still-large encumbrances and recognizable risks for Germany’s economy should, however, neither be overlooked nor not dealt with, stated Müller.
The crisis is now showing signs of coming to an end. Müller made it clear that this has to be accompanied by a halting of these extraordinary monetary policies. Of key importance is finding the right time for doing such. “It can’t be too early – or too late.” Müller cited an important step towards normalcy as being the relaunching of the past’s interest rate tenders.
Müller expounded upon two hotly-discussed issues that had emerged in the wake of the crisis. He doesn’t see any thoroughgoing proof of the much-feared credit crunch’s actually existing. He views a number of the ideas being discussed as to how to improve the regulations applying to banks as “making sense”. Earning his praise was the concept of increasing banks’ capital backing.
“Differences within the USA are greater than those in the Eurozone”
The discussion following Müller’s talk centered around the current situation in Greece and its ramifications. The question was raised as to whether the crisis was caused by the failure to have a single set of financial policies’ accompanying the institution of a single currency. Müller’s response was to describe the currency union as being a net benefit for Germany. Had the euro not become the currency of Greece, there would have been upward pressures upon the D-Mark’s rates of exchange. This would have had a negative effect upon the country’s economy. The true cause of the crisis is that such countries as Greece or Portugal have failed to make use of the advantages accruing to their economies from the currency union. While viewing the Eurozone as not constituting an optimal currency union, Müller described the USA as also showing deficiencies in this area. “The differences existing within USA are, in some cases, greater than those in the Eurozone.”
The question was then raised as to which instruments could be availed of by such underperforming countries in the Eurozone to replace rates of exchange and of interest in dealing with laggings in productivity and competitiveness. Müller’s response was to accord a high priority to the labor market. He views the instituting of a system of financial compensation as not being feasible. The only way to make up for these divergences is the undertaking of in-country readjustments, even in those cases in which such processes proved painful. Müller was asked as to his prediction as to the course of development of the euro-dollar rate of exchange. His response was brief. It’s not a subject on which he had anything to say, as no predictions had any particular likelihood of coming true.
The discussion on monetary policy, Greece and rates of exchange was set forth during the ensuing reception, at which the get-together’s participants busily pursued their networking and exchangings of views.
Christine Bortenlänger, the get-together’s hostess, was highly satisfied with it. “The get-together brought together Munich’s leading experts on monetary policies and many of our city’s high potentials. The ensuing talks, discussions and networking detail the vitality and viability of fpmi inside,” she concluded.
The first fpmi inside was held on November 2009 by Munich Financial Center Initiative (which is known by its German abbreviation of “fpmi”). The get-together was attended by the high potentials and experts dispatched by their financial companies’ executive or managing directors to attend it. April’s event followed the same format. It was held on the premises of the Munich Stock Exchange, which are located on Munich’s Karolinenplatz square. Some 80 guests were in attendance.
The evening was kicked off by words of welcome from Christine Bortenlänger, speaker of fpmi and member of the managing board of the Munich Stock Exchange, and by a lecture from Alois Müller on “Monetary policies: the challenges to be mastered in the crisis”. In her talk, Bortenlänger had cited several of the many opinions on this subject. The opinions’ common denominator: the view that monetary policymakers had faced challenges of an import last seen in the 1903’s. Müller preferred to see the policymakers as having dealt with a “great responsibility”. Comprising the resorting to “unusual measures” by the Eurosystem and other central banks, their efforts had led to a substantial regaining of stability on financial markets and in economies as a whole. The still-large encumbrances and recognizable risks for Germany’s economy should, however, neither be overlooked nor not dealt with, stated Müller.
The crisis is now showing signs of coming to an end. Müller made it clear that this has to be accompanied by a halting of these extraordinary monetary policies. Of key importance is finding the right time for doing such. “It can’t be too early – or too late.” Müller cited an important step towards normalcy as being the relaunching of the past’s interest rate tenders.
Müller expounded upon two hotly-discussed issues that had emerged in the wake of the crisis. He doesn’t see any thoroughgoing proof of the much-feared credit crunch’s actually existing. He views a number of the ideas being discussed as to how to improve the regulations applying to banks as “making sense”. Earning his praise was the concept of increasing banks’ capital backing.
“Differences within the USA are greater than those in the Eurozone”
The discussion following Müller’s talk centered around the current situation in Greece and its ramifications. The question was raised as to whether the crisis was caused by the failure to have a single set of financial policies’ accompanying the institution of a single currency. Müller’s response was to describe the currency union as being a net benefit for Germany. Had the euro not become the currency of Greece, there would have been upward pressures upon the D-Mark’s rates of exchange. This would have had a negative effect upon the country’s economy. The true cause of the crisis is that such countries as Greece or Portugal have failed to make use of the advantages accruing to their economies from the currency union. While viewing the Eurozone as not constituting an optimal currency union, Müller described the USA as also showing deficiencies in this area. “The differences existing within USA are, in some cases, greater than those in the Eurozone.”
The question was then raised as to which instruments could be availed of by such underperforming countries in the Eurozone to replace rates of exchange and of interest in dealing with laggings in productivity and competitiveness. Müller’s response was to accord a high priority to the labor market. He views the instituting of a system of financial compensation as not being feasible. The only way to make up for these divergences is the undertaking of in-country readjustments, even in those cases in which such processes proved painful. Müller was asked as to his prediction as to the course of development of the euro-dollar rate of exchange. His response was brief. It’s not a subject on which he had anything to say, as no predictions had any particular likelihood of coming true.
The discussion on monetary policy, Greece and rates of exchange was set forth during the ensuing reception, at which the get-together’s participants busily pursued their networking and exchangings of views.
Christine Bortenlänger, the get-together’s hostess, was highly satisfied with it. “The get-together brought together Munich’s leading experts on monetary policies and many of our city’s high potentials. The ensuing talks, discussions and networking detail the vitality and viability of fpmi inside,” she concluded.