Distinguished Lecture Series | Shu Chang: How Silicon Valley Bank and Credit Suisse Are Changing Global Central Bank Policy
Organizers
Shenzhen Finance Institute
School of Management and Economics, CUHK-Shenzhen
Guest Profile
Shu Chang
Chief Asia Economist for Bloomberg Economics
Shu Chang is chief Asia economist for Bloomberg Economics, based in Hong Kong. She leads a team to research into China, Japan, Australia, and other major economies in the Asia-Pacific. Previously, Shu was a senior economist at the Bank for International Settlements and at Hong Kong Monetary Authority. During that time, she has done extensive research on the global and Chinese economy and financial markets, and has also been involved in important policy work such as the internationalization of the renninbi. Before that, she also worked as a financial analyst at the Bank of England.
Shu Chang edited two books: Currency Internationalisation: Global Experiences and Implications for the Renminbi and Cross-Border Financial Linkages in Asia and the Pacific: Implications for Systemic Risks. A director at the Chinese Financial Association of Hong Kong, she has written extensively on the Chinese economy, renminbi internationalization and financial spillovers from China. She received her Ph.D. in Finance from the University of Birmingham, UK.
Shu Chang is passionate about public service activities and services. He is the Secretary General of Sprinkles, Hong Kong, a board member of Chinese Financial Association of Hong Kong, and a board member of Yes We Do Foundation.
Lecture Topic
How Silicon Valley Bank and Credit Suisse Are Changing Global Central Bank Policy
The collapse of Silicon Valley Bank and the bailout by Credit Suisse have reshaped the outlook for monetary policy. The Federal Reserve (the Fed) and the European Central Bank try to control inflation and maintain financial stability with different policy tools. But the objective reality is that they are dealing with only one economy and financial system, and policy prescriptions to control prices and prevent bank runs have the opposite effect. The most likely outcome for now is a period of financial stress that weighs on growth, providing some relief for the central bank on inflationary pressures. But a worst-case scenario is that the banking system faces a full-scale crisis, forcing the central bank to choose to maintain financial stability and give up fighting inflation.
The banking crisis in Europe and the United States has brought new uncertainties to the world economy, which is already facing many difficulties. The restart of the Chinese economy has given a boost to the global economy, but the sustainability remains to be seen. Shu Chang will give you into the following issues: Under the double impact of high inflation and financial market turmoil, when will the Fed end raising interest rates? Can the world economy avoid recession? How strong the impetus for China’s economic recovery is, is it sustainable, and how will it affect the world economy?
