The post-GFC world: lessons learned

The dust may have settled on the global financial crisis, but have the leaders of the G20 countries put in place policies that will prevent another meltdown? This will be just one of the questions addressed in a lecture at The Australian National University today. The lecture will see Professor Prasanna Gai from the ANU Crawford School of Economics and Government discuss a range of issues facing academics and policy-makers in the post-GFC world. Professor Gai is an expert in international economics and monetary policy and is currently Special Adviser to the Governor of the Bank of Canada. In the communiqué issued at the conclusion of the G20 summit in Seoul, the first since the financial crisis, leaders agreed to a range of policy measures on financial regulation. Professor Gai will discuss the rationale behind the G20 initiatives, outline the main causes of the crisis and identify areas of future concern. ?There are a number of holes in current economic analysis which have real implications for policymakers and the type of research that economists will be conducting in the future. 'Global imbalances, especially between the United States and China, led to the development of a shadow banking system and a critical role for interbank markets, the collapse of which was triggered by the failure of Lehman Brothers in September 2008,' said Professor Gai.