G20 Global Financial Stability Conference 2022
MOEF Hosts G20 Global Financial Stability Conference 2022
The Ministry of Economy and Finance and Korea Development Institute (KDI) co-hosted the G20 Global Financial Stability Conference 2022 on September 21. It is the 8th event of the conference where scholars and G20 policymakers throughout the globe can join together and pool their wisdom to diagnose potential global economic risks and devise countermeasures.
The conference consisted of three sessions:
1) The Global Economic Outlook and the Acceleration of Tightening Monetary Policy
2) The Role of the Global Financial Safety Net
3) The Future of International Financial Architecture
The following is a summary of 1st Vice Minister Kisun BANG’s opening remarks.
The current volatility in the financial market has stemmed from challenges[1] in the real economy unlike the past days when the Asia financial crisis in 1997 and the global financial crisis in 2008 broke out. Although this financial volatility could possibly weigh on the real economy, creating a vicious cycle, policy options available to the governments are limited due to rising debts to respond to the Covid-19 pandemic and tight monetary policies to tame inflation.
To address these challenges, the G20 that demonstrated leadership in tackling the challenges in the past needs to take actions to achieve global financial stability by replacing words with deeds[2].
Moreover, the Korean government has made efforts to comply with global financial standards by exempting income and corporate tax on gains derived from foreign investment in KTBs and working to join the FTSE World Government Bond Index (WGBI), and 1st VM BANG requested support for the government to attain its goal.
Policy suggestions offered during the conference will be carefully reviewed for discussions that will be held at the G20 Finance Ministers’ Meeting in October 2022 and the G20 Summit in November 2022.
[1] Supply chain disruptions caused by the pandemic, supply chain restructuring as a result of the emergence of global economic blocs, and a sharp rise in raw material prices driven by geopolitical risks
[2] This phrase is borrowed from the book titled “How the G20 can hasten recovery from COVID-19 (2020)” co-authored by Maurice Obstfeld who is a keynote speaker at the event.
Please refer to the attached pdf.
