The State of Economics: Global Financial System and Procyclicality

Thinkers instrumental in shaping contemporary economics do a major stocktaking of the field, and also look ahead at the challenges of global development. The speakers reflect on the way thinking in economics has evolved in his or her area of interest, and also speculate about how the global economy is likely to evolve and the challenges this will pose for humankind, economic analysis, and policy-making. The real economy – the production of goods and services – is sensitive to changes in financial conditions. Similarly, global financial conditions are tied to the strength of the dollar. Understanding why these factors interact will improve our understanding of the role of international finance in development and growth.