Dr. Jianguang Shen

The Future of Currency and the Global Financial System - Conference Call Series

John Lee, Dr. Jianguang Shen, Dr. Michael Hasenstab, Dr. William Lee, Laura DeLacy

Milken Institute and global experts convened to analyze the pandemic's dual transformation of health innovation and macroeconomic policy, where central banks have shifted from resolving liquidity crises to addressing a solvency crisis driven by historic deficits and surging savings. The discussion highlighted divergent strategies in digital currency, with China mandating a state-controlled CBDC to dismantle private payment monopolies, while the United States and other nations grapple with private sector experiments like Libra against a backdrop of eroding central bank credibility. Ultimately, participants warned that the "double unknown" of implementing new monetary technologies during aggressive fiscal expansion poses significant leverage risks, particularly for emerging markets with fragile banking systems.