- Former Investment Banker Karim Pakravan Explains Inter-dependence of Macroeconomic Conditions that Led to Global Financial Crisis
Dubai - Policy makers and leaders of financial institutions are now turning their attention more to a set of interrelated issues that caused the economic meltdown while the world is beginning to emerge from the global financial crisis, according to Karim Pakravan, Associate Professor of Finance at DePaul University in Chicago.
Prof. Pakravan’s remarks came during a lecture titled “Global Financial Architecture, Global Imbalances and the Future of the Dollar in the Post-Crisis World” at the Dubai School of Government (DSG), a research and teaching institution focusing on public policy in the Arab world. A large group of students, corporate executives and government officials attended the lecture, which offered a perspective on how several factors jointly contributed to maintaining world economic health.
Sharing these insights, Prof. Pakravan said policy makers of major economies and multilateral institutions have now begun to concentrate on how to exit from emergency fiscal and monetary measures and turn toward shaping the post-crisis financial world.
Speaking about building a robust global financial framework, Prof. Pakravan said: “To build a financial architecture which is designed for both crisis prevention and mitigation while facilitating economic growth, we cannot ignore closely related issues such as global imbalances, reforming the international monetary system, rethinking the role of dollar as the global currency and strengthening the national and global financial regulatory infrastructure.”
Prof. Pakravan, an expert in leading-edge applied macroeconomic and financial research on currencies and emerging markets, emphasized that the recession was characterized by the significant and long-term worsening of the fiscal and monetary resources of the major industrialized countries. He added that the world, now on its road to recovery, is more dependent on the financial resources and economic policies of emerging market powers, especially the BRIC (Brazil, Russia, India and China) countries and oil producing nations.
Dr. Tarik Yousef, Dean of the Dubai School of Government, said: “Prof. Pakravan’s insightful talk demonstrated once again the relevance of understanding the larger picture for arriving at solutions. Some us will have the opportunity to affect changes in policies which could bring about major reforms. It is very important for us to study the cause-and-effect relationship between issues to make informed decisions.”
Prof. Pakravan assumed the post of Associate Professor of Finance at DePaul University after a 25-year career as a senior strategist in the global financial sector. His last banking position was Senior Foreign Exchange Strategist at JP Morgan, a leading global financial services firm with assets of US$2 trillion and operations in more than 60 countries. With a Ph.D. in Economics from the University of Chicago, Prof. Pakravan is also associated with the Investment Committee of Advocacy Investing, a Chicago-based socially responsible investment fund, which he advises on macroeconomic and financial issues. He is also a Board Member of the Social Entrepreneurship Association, Illinois Chapter, and the International Subcommittee of the Association of Mergers and Acquisitions Advisors.
Established in 2005 in cooperation with the Harvard Kennedy School, the Dubai School of Government is committed to the creation of knowledge, and dissemination of global best practices in the Arab world. The School conducts various programs that seek to enhance the region’s capacity for effective public policies.
For more details, visit
www.dsg.ae or call 04 329 3290.
