Peterson Institute Press Room

Event Advisory: European Central Bank's Peter Praet to Speak on Monetary Policy in the Context of Balance Sheet Adjustments

WHO:	Peter Praet Member of Executive Board, European Central Bank
WHEN:	Wednesday, May 22, 2013 12:00 noon – 2:00 p.m. (Lunch will be served at 12:00 noon and the presentation will begin at 12:30 p.m)
WHERE:	C. Fred Bergsten Conference Center Peter G. Peterson Institute for International Economics 1750 Massachusetts Avenue, NW Washington, DC 20036 (Metro: Red Line to Dupont Circle)
RSVP:	media@piie.com Note: This meeting is open to all press but by invitation only to the general public. If you plan to send a video camera please indicate this in your RSVP and have your videographer in place by 11:45 a.m.

Peter Praet, member of the Executive Board of the European Central Bank (ECB), will address the topic "Monetary Policy in the Context of Balance Sheet Adjustments" on May 22 at the Peterson Institute for International Economics.

Praet joined the ECB as a member of the Executive Board in June 2011. He is responsible for economics, human resources, budget and organization, and statistics. Before joining the ECB, Dr. Praet was executive director of the National Bank of Belgium between 2000 and 2011. Between 2002 and 2011, he was also Member of the Management Committee of the Belgian Banking, Finance and Insurance Commission, where he was responsible for prudential policy for banking and insurance. From 1999–2000, Praet served as Chief of Cabinet for the Belgian Minister. He earned his Ph.D. in Economics from the Université Libre de Bruxelles.

Brian Reil
Media Liaison
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036
media@piie.com
www.piie.com
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Huawei and the Need for a Nondiscriminatory Approach to Cybersecurity

May 9, 2013

This week the Pentagon singled out China for engaging in sophisticated cyber espionage aimed at acquiring US intellectual property and trade secrets, increasing suspicions of connections between China's military and some Chinese corporations. Following the report the founder of Huawei, a Chinese telecom and electronics giant, spoke with reporters to defend his company, which has been the focus of criticism and suspicions by the US government and US lawmakers.

In a new Policy Brief [pdf] Theodore H. Moran says that hardware and software vulnerabilities of US companies and systems are ubiquitous. He outlines proposals for a multilateral nondiscriminatory procedure to protect American telecom systems from potential threats that could originate with IT goods and services – and patches and upgrades – from supply chains that span the world, including China.

Moran, who serves as a paid member of the International Advisory Council of Huawei, writes that Huawei itself provides a possible answer to the issue of national security threats. Its own security assurance program offers to place all source code in escrow to a trusted third party that can verify that goods and services are "clean" to buyers or governments. An array of independent cybersecurity assessment cells may be needed around the globe to vet the hardware and software of all major IT providers without discrimination, providing results to private clients and governments alike.

The dangers and risks of compromise of national security and trade secrets are real. But Moran contends singling out one company or entity producing foreign IT goods and services on the basis of its nationality, rather than hard evidence, and forbidding numbers of companies from doing business or acquiring companies in the domestic market in the absence of such evidence is ineffective, discriminatory, and unfair.

To speak with Moran, please contact Brian Reil at media@piie.com or 202-454-1334.

Media Advisory: High Homeownership Can Seriously Damage a Country's Labor Market

May 7, 2013

Does high homeownership impair the labor market? Yes, and severely, according to a new Peterson Institute Working Paper [pdf] by David G. Blanchflower and Andrew J. Oswald.

The researchers examined a century of unemployment and homeownership data for each US state from 1900-2010. They found rises in homeownership in a state are followed by substantial increases in the unemployment rate in the state, a fall in the mobility of its workers, a rise in commuting time, and a drop in the rate of new business formation.

The study found that the five states with the largest increase in homeownership (an average of +23% in Alabama, Georgia, Mississippi, South Carolina, and West Virginia) since 1950 had a rise in the unemployment rate of 6.3 percentage points between 1950 and 2010.

By contrast, the five states that had the lowest increase in homeownership over the same period (an average of +1% in California, North Dakota, Oregon, Washington, and Wisconsin) saw a rise in unemployment of only 3.5 percentage points during the same period.

Blanchflower is a nonresident senior fellow at the Peterson Institute and the Bruce V. Rauner Professor of Economics at Dartmouth College.

Oswald is a professor of economics at the University of Warwick.

To request an interview with either of the authors, please contact Brian Reil at media@piie.com or 202-454-1334.

Federal Reserve Gov. Daniel Tarullo to Speak on the Progress of Regulatory Reform - May 3

WHO:	Daniel Tarullo Governor, Federal Reserve System
WHEN:	Friday, May 3, 2013 12:00 noon – 2:00 p.m. (Lunch will be served at 12:00 noon and the presentation will begin at 12:30 p.m)
WHERE:	C. Fred Bergsten Conference Center Peter G. Peterson Institute for International Economics 1750 Massachusetts Avenue, NW Washington, DC 20036 (Metro: Red Line to Dupont Circle)
RSVP:	media@piie.com Note: This meeting is open to all press but by invitation only to the general public. If you plan to send a video camera please indicate this in your RSVP and have your videographer in place by 11:45 a.m.

The Peterson Institute will host a speech by Governor Daniel Tarullo of the Federal Reserve System at a luncheon on Friday, May 3. Governor Tarullo will address "Evaluating Progress in Regulatory Reforms to Promote Financial Stability." He will examine the reforms since 2008 on bank capitalization and leverage to explain how the current regulatory system would react to a financial shock.

Governor Tarullo took office as a Member of the Board of Governors of the Federal Reserve System on January 28, 2009. He had served previously in the Clinton Administration as Assistant Secretary of State for Economic and Business Affairs and Assistant to the President for International Economic Policy, including as the President's personal representative to the G7/G8. Immediately prior to joining the Fed, he was Professor of Law at Georgetown University Law Center. In 2008, the Institute published his book Banking on Basel: The Future of International Financial Regulation.

If you are unable to attend in person, the event will be webcast live starting at 12:30 p.m. (EDT).

Brian Reil
Media Liaison
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036
media@piie.com
www.piie.com
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Event Advisory: Dr. Hans-Werner Sinn to Speak at PIIE About the Euro Crisis - May 1

WHO:	Dr. Hans-Werner Sinn President, Ifo Institute for Economic Research Director, Center for Economic Studies, University of Munich
WHEN:	Wednesday, May 1, 2013 12:00 noon – 2:00 p.m. (Lunch will be served at 12:00 noon and the presentation will begin at 12:30 p.m)
WHERE:	C. Fred Bergsten Conference Center Peter G. Peterson Institute for International Economics 1750 Massachusetts Avenue, NW Washington, DC 20036 (Metro: Red Line to Dupont Circle)
RSVP:	media@piie.com Note: This meeting is open to all press but by invitation only to the general public. If you plan to send a video camera please indicate this in your RSVP and have your videographer in place by 11:45 a.m.

The Peterson Institute's ninth annual Whitman Lecture will be presented by Dr. Hans-Werner Sinn on Wednesday, May 1. His lecture is titled "The Euro Crisis."

Dr. Sinn is the President of the Ifo Institute for Economic Research, one of the leading economic research institutions in Europe. In addition to his work at Ifo, he is also the Director of the Center for Economic Studies, University of Munich; Professor, University of Munich, and chair for economics and public finance; and is CEO of CESifo Inc. Bloomberg Markets Magazine included Dr. Sinn in their "50 Most Influential in 2012" list. He contributes regularly to scholarly publications including Economic Policy, Finanzarchiv, Journal of Public Economic, De Economist, and the Journal of Economic Literature as well as having written a number of bestsellers in Germany and Europe on economic issues. Dr. Sinn completed his Ph.D. in political science and received Habilitation and venia legendi in economics from the University of Mannheim.

If you are unable to attend in person, the event will be webcast live starting at 12:30 p.m. (EDT).

Brian Reil
Media Liaison
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036
media@piie.com
www.piie.com
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The Stavros Niarchos Foundation Generously Extends Annual Lecture Series at PIIE

WASHINGTON—The Peterson Institute for International Economics is pleased to announce that the Stavros Niarchos Foundation has awarded PIIE a major grant to continue its annual Stavros Niarchos Foundation Lecture series for three more years. Each May, the Stavros Niarchos Foundation Lecture enables the Institute to present a leading figure in global economic policy-making and thinking for a major address on a topic of central concern to the US and international policy communities.

"Since 2001, the Stavros Niarchos Foundation has generously supported PIIE's signature annual event," said Adam S. Posen, president of the Peterson Institute. "The Foundation has been an incredibly strong supporter of the Institute's mission, and we are excited to continue bringing the world's economic leaders to address our audiences."

The inaugural Stavros Niarchos Foundation Lecture was delivered by Alan Greenspan, then chairman of the Federal Reserve board, in 2001. Subsequent presenters have been Petr Aven, Chairman of the Board of Directors of Alfa Bank; Niall Ferguson, Laurence A. Tisch Professor of History at Harvard University; John Lipsky, then acting Managing Director of the International Monetary Fund; Mario Monti, former commissioner of the European Union and former Prime Minister of Italy; Nandan M. Nilekani, former co-chairman of the Board of Directors, Infosys Technologies, LTD; Lawrence H. Summers, former Secretary of the Treasury and later director of the White House's National Economic Council; Heizo Takenaka, former minister for economic policy of Japan; Jean-Claude Trichet, former President of the European Central Bank; Long Yongtu, former vice minister of China's Ministry of Foreign Trade and Economic Cooperation; and Ernesto Zedillo, former president of Mexico.

With the enthusiastic endorsement of PIIE's Executive Committee, the Institute has selected C. Fred Bergsten, its director emeritus, to deliver the 2013 Stavros Niarchos Foundation Lecture on May 16. Dr. Bergsten co-founded the Institute in 1981 and served as its director from its founding until December 2012. He remains active at the Institute as senior fellow and director emeritus.

The Stavros Niarchos Foundation is one of the world's leading international philanthropic organizations, making grants in the areas of arts and culture, education, health and medicine, and social welfare. The Foundation funds organizations and projects that exhibit strong leadership and sound management and are expected to achieve a broad, lasting, and positive social impact. The Foundation generously supported the Institute's recent major program on "Ethics and Globalization: The Tradeoffs Underlying Our Policy Choices." The keystone conference featured a distinguished group of economists, philosophers, political scientists, and policymakers engaged in an interdisciplinary discussion of fundamental issues underlying economic policy decisions. Participants addressed the challenges of considering duties to domestic versus global welfare, balancing economic goals between generations, expecting ethical duties from private actors, and reconciling global governance and local accountability.

Andreas C. Dracopoulos, director and co-president of the Stavros Niarchos Foundation, is a member of the PIIE Board's Executive Committee. His and co-president Spyros Niarchos's generous support will enable PIIE to continue bringing the world's brightest economic minds to speak at the Institute.

About the Peterson Institute

The Peterson Institute for International Economics is a private, nonprofit institution for rigorous, open, and intellectually honest study and discussion of international economic policy. Its purpose is to identify and analyze important issues to making globalization beneficial and sustainable for the people of the United States and the world and then to develop and communicate practical new approaches for dealing with them. The Institute is widely recognized as nonpartisan.

Event Advisory: Multiple PIIE Meetings During WB-IMF Spring Meetings

EVENT ADVISORY: Multiple PIIE Meetings During WB-IMF Spring Meetings

The Peterson Institute for International Economics will host the following meetings during the week of the World Bank – International Monetary Fund Spring Meetings:

WEDNESDAY, APRIL 17

The Policy Implications of Deepening Global Value Chains
12 noon-2:00 p.m. (Lunch served at noon with the meeting beginning promptly at 12:30 p.m.)
Speakers:
Bernard Hoekman, the World Bank's Sector Director of the Trade Department
Richard Baldwin of the Graduate Institute, Geneva, and Founder and Editor-in-Chief of VoxEU.org
Ralph Carter, FedEx's Managing Director in Regulatory Affairs
Overview:
The Peterson Institute will be co-sponsoring with the European Central Bank and the World Bank a luncheon panel on the policy implications of deepening global value chains.

Meeting with Russia's G-20 Sherpa Ksenia Yudaeva and Deputy Minister of Finance Sergei Storchak
4:00-5:30 p.m.
Speakers:
Ksenia Yudaeva, Russia's chief of the directorate of presidential experts and G-20 Sherpa
Sergei Storchak, Russia's Deputy Minister of Finance
Overview:
Russia has chaired the G-20 since December and is preparing for the next G-20 summit to be held in St. Petersburg on September 5-6. Yudaeva and Storchak will discuss what Russia hopes to accomplish as chairman of the G-20, which questions the G-20 will focus on, and what are the possibilities of success in these policy areas.

THURSDAY, APRIL 18

Morning Session with Anders Borg, Minister of Finance of Sweden
10:00-11:30 a.m.
Speaker:
Anders Borg, Minister of Finance of Sweden
Overview:
Minister Borg will speak about the continuing impact of the European crisis and offer his insights on the path to, and prospects for, Europe's economic recovery. This meeting will be webcast live at 10:00 a.m., and will be listed on the event page early next week.

FRIDAY, APRIL 19

Release of Bruegel's New Study of the Troika's Recent Programs in Europe
8:30-10:00 a.m.
Speakers:
Jean Pisani-Ferry, Founding Director of Bruegel and prof. of economics at Université Paris-Dauphine
Reza Moghadam, Director of the European Department at the IMF
Servaas Deroose, Deputy Director-General at the European Commission's Directorate-General for Economic and Financial Affairs
Jacob Funk Kirkegaard, senior fellow at the Peterson Institute
Overview:
The Peterson Institute will host a meeting to rollout Bruegel's new study which assesses in detail the Troika's programs in Greece, Ireland, and Portugal.

Luncheon Presentation by Indian Finance Minister P. Chidambaram
12:30-2:00 p.m. (Lunch served at 12:30 p.m. with the meeting beginning promptly at 1:00 p.m.)
Speaker:
P. Chidambaram, Finance Minister of India
Overview:
Minister Chidambaram will speak on the state of the Indian economy and its significant economic reforms, which include liberalizing the economy to foreign direct investment, reducing fuel subsidies, and reviving tax reform. This meeting will be webcast live at 1:00 p.m., and will be listed on the event page early next week.

If you plan to attend any of the meetings, please RSVP to media@piie.com and note if you plan to bring a video camera.

Brian Reil
Media Liaison
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036
media@piie.com
www.piie.com
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Morning Meeting on Spain's Competitiveness and Potential for Recovery - April 12

WHO:	Angel Ubide Senior Fellow, Peterson Institute for International Economics Director of Global Economics, D.E. Shaw
WHEN:	Friday, April 12, 2013 9:00 a.m.–10:30 a.m. (Continental breakfast will be served at 9:00 a.m. with the conference starting promptly at 9:30 a.m.)
WHERE:	C. Fred Bergsten Conference Center Peter G. Peterson Institute for International Economics 1750 Massachusetts Avenue, NW Washington, DC 20036 (Metro: Red Line to Dupont Circle)
RSVP:	media@piie.com Note: This meeting is open to all press but by invitation only to the general public. If you plan to send a video camera please indicate this in your RSVP and have your videographer in place by 8:45 a.m.

The Peterson Institute will host a presentation of the paper "Spain, a Land of Opportunities" by Consejo Empresarial para la Competitividad (Spain's Business Competitiveness Council), on Friday, April 12. Angel Ubide, senior fellow at the Institute, will address the development of Spain's competitiveness and potential recovery.

The CEC, created in 2011, is led by the presidents of fifteen major Spanish companies and el Instituto de Empresa Familiar (Spain's Family Firm Institute). The CEC think tank tries to translate the experience of these large multinational firms into policy proposals that are geared to raising the competitiveness of, and confidence in, the overall Spanish economy.

Ubide, also Director of Global Economics at D.E. Shaw, is an expert on central banking, European affairs, financial policy, and macroeconomic policy. His recent work has focused on the dynamics of the global financial crisis, the evolution of global imbalances, and the reform of the international financial architecture.

Brian Reil
Media Liaison
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036
media@piie.com
www.piie.com
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Conference on "Currency Wars: Economic Realities, Institutional Responses, and the G-20 Agenda" - April 2

WHO:	Joseph Gagnon, Peterson Institute for International Economics Vera Thorstensen, Getúlio Vargas Foundation of Brazil Douglas Irwin, Dartmouth College Luis Catao, International Monetary Fund Aluisio de Lima Campos, American University R. Michael Gadbaw, Georgetown University Law Center Hector Torres, Former Executive Director of the International Monetary Fund Gary Clyde Hufbauer, Peterson Institute for International Economics Benoit Coeuré, European Central Bank John Murray, Bank of Canada Luiz Pereira da Silva, Banco Central do Brasil Robert Zoellick, Peterson Institute and Former President of the World Bank
WHEN:	Tuesday, April 2, 2013 8:00 a.m. – 2:00 p.m. (Breakfast will be served at 8:00 a.m. and the conference will begin at 8:20 a.m.)
WHERE:	C. Fred Bergsten Conference Center Peter G. Peterson Institute for International Economics 1750 Massachusetts Avenue, NW Washington, DC 20036 (Metro: Red Line to Dupont Circle)
RSVP:	Brian Reil, media@piie.com 202-454-1334 Note: This conference is open to all press but by invitation only to the general public. If you plan to send a video camera please indicate this in your RSVP and have your videographer in place by 7:45 a.m.

The Peterson Institute will hold a major conference on "Currency Wars: Economic Realities, Institutional Responses, and the G-20 Agenda" on Tuesday, April 2.

The morning program will start with presentations of new research on the significant economic impact of currency intervention and misalignment. This will be followed by a discussion of the institutional roles of the International Monetary Fund (IMF) and the World Trade Organization (WTO), and their standing to deal with currency disputes.

Over lunch will be an on-the-record panel of senior policymakers discussing the global implications of currency wars in the context of the G-20. This will be a unique opportunity for frank exchange of views between distinguished officials on the front lines of currency issues.

The full agenda for the meeting is below
If you are unable to join us in person, the conference will be webcast live starting at 8:20 a.m. ET.

Brian Reil
Media Liaison
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036
media@piie.com
www.piie.com
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CURRENCY WARS:
Economic Realities, Institutional Responses, and the G-20 Agenda

April 2, 2013

8:00 a.m. Registration and Breakfast

8:20 a.m. Welcoming Remarks by Adam Posen, President of PIIE

8:30 a.m. Economics Panel
Moderator: C. Fred Bergsten (PIIE)

Joseph Gagnon (PIIE) "The Elephant Hiding in the Room: Currency Intervention and Trade Imbalances"

Vera Thorstensen (Getúlio Vargas Foundation) "Impacts of Exchange Rate Misalignments on Trade Instruments: The Role of the WTO" (with E. Marçal)

Discussants: Luis Catao (IMF)
Douglas Irwin (Dartmouth College)

10:15 a.m. Coffee and Tea

10:30 a.m. Law Panel: The Roles of the IMF and the WTO
Moderator: Aluisio de Lima-Campos (American University)

R. Michael Gadbaw (Georgetown Law)
Hector Torres (IMF/WTO)
Gary Hufbauer (PIIE)

12:00 p.m. Lunch Buffet

12:20 p.m. Luncheon Panel: Currency Wars and the G-20's Goal of Strong, Sustainable, and Balanced Growth
Moderator: Adam Posen (PIIE)

John Murray (Bank of Canada)
Benoit Coeuré (European Central Bank)
Luiz Pereira da Silva (Banco Central do Brasil)
Robert Zoellick (PIIE)

2:00 p.m. Adjourn Conference

Event Advisory: Semi-Annual "Global Economic Outlook" Conference Call and Webcast - April 1

The Peterson Institute will present the next of its semi-annual economic outlook sessions on Monday, April 1. The speakers will forecast the outlook for three major components of the global economy: the United States, Europe, and Latin America. Before the outlook session, we will be pleased to make the presenters available for a press conference call to summarize and discuss their forecasts. This call will take place at 10:00 a.m. ET on Monday, April 1.

The outlook for the United States will be presented by David J. Stockton, the Institute's newest senior fellow who was previously chief economist at the Federal Reserve Board from 2000–2011.

The outlook for Europe and the euro area will be presented by Jacob Funk Kirkegaard, who will assess the impact of the Cyprus bank bailout and the political turmoil in Italy on the stability of Europe.

Barbara Kotschwar, a research fellow at the Institute and expert on Latin American political economy, will speak about the direction of the region's economic policies, particularly on whether they will return to more market- and US-friendly paths following recent developments in Brazil, Cuba, Mexico, and Venezuela.

The global economic outlook session will be webcast live starting at 12:30 p.m. ET.

If you plan to participate in the press conference call, please confirm with Brian Reil at media@piie.com.

Call-in instructions:
At 10:00 a.m. ET, dial the toll-free access number 800-952-1647 or direct dial/international access number 404-920-1712.
When prompted, enter your participant code, followed by #.
Your participant code is 39539386.

Star commands:
*1 - Question - When the call opens up to questions, you can “raise your hand” by pressing *1. You will verbally be prompted to ask your question when it is your turn.
*4 - Volume - Pressing *4 will increase/decrease volume.
*6 - Mute - Participants can mute/unmute their own lines by pressing *6.

Brian Reil
Media Liaison
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036
media@piie.com
www.piie.com
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Event Advisory: Release of IMF Study on 'Energy Subsidy Reforms' at the Peterson Institute - March 27

WHO:	David Lipton First Deputy Managing Director, International Monetary Fund
WHEN:	Wednesday, March 27, 2013 12 Noon–2:00 p.m. (Lunch will be served at 12:00 noon and the presentation will begin at 12:30 p.m.)
WHERE:	C. Fred Bergsten Conference Center Peter G. Peterson Institute for International Economics 1750 Massachusetts Avenue, NW Washington, DC 20036 (Metro: Red Line to Dupont Circle)
RSVP:	media@piie.com Note: This meeting is open to all press but by invitation only to the general public. If you plan to send a video camera please indicate this in your RSVP and have your videographer in place by 11:45 a.m.

On Wednesday, March 27, The Peterson Institute will cohost the release of the International Monetary Fund's (IMF) new study on "Energy Subsidy Reforms – Lessons and Implications." David Lipton, the IMF's First Deputy Managing Director, will make leadoff remarks to present the analysis, and a panel discussion will follow with a number of non-governmental perspectives.

Based on a review of energy subsidies in 176 countries, the study presents a compelling case for the urgent need to deeply revise the way that energy subsidies are applied, in both rich and poor countries. Case studies of successful and unsuccessful reforms in 19 countries offer clear guidelines on how to implement change. The study touches on broad issues such as growth, fiscal sustainability, inequality, greenhouse gas emissions, and global warming.

Lipton became First Managing Director of the IMF in September 2011. Before joining the IMF, he was Special Assistant to the President, and served as Senior Director for International Economic Affairs at the National Economic Council and National Security Council at the White House. He served in the Clinton administration at the Treasury Department from 1993 to 1998, including as Assistant Secretary and Under Secretary of the Treasury for International Affairs.

Can the Rescue Package for Cyprus Be Salvaged Without Causing a Panic in Europe?

Specialists on Europe at the Peterson Institute for International Economics have produced an outpouring of commentary and analysis on the revival of crisis talk in Europe after the collapse of a rescue package for Cyprus. Please take a look at the comments and feel free to get in touch.

In an unusual discussion on Peterson Perspectives, Jacob Funk Kirkegaard argues the bailout will be salvaged and there is no immediate risk of contagion provided the package is completed soon. Nicolas Véron warns it is dangerous to minimize such fears. Both experts weigh in on the options for salvaging the Cyprus bailout package in a two-part Peterson Perspectives interview.

Edwin Truman also assesses what he calls the botched bailout strategy, and what to expect next now that European leaders and the IMF are groping for Plan B.

In this short article, Kirkegaard breaks down the initial terms of the bailout, and walks through why he believes requiring depositors in Cypriot banks to share the financial burden of the country's financial rescue is the least bad option for Cyprus. He will discuss this and any new developments tomorrow morning on NPR's The Diane Rehm Show (Thursday at 10 a.m. ET).

Anders Aslund explains why Russians – who have used Cyprus banks as a financial intermediary for what many say are illicit and money-laundering activities – may come to the rescue of the country's banking system.

To request an interview with Åslund, Kirkegaard, Truman, or Véron please contact Brian Reil at media@piie.com or 202-454-1334.

News Release: New Study Examines Benefits to the US from Growth in Emerging Economies

WASHINGTON—Free trade agreements and the surge in American foreign direct investment in emerging market countries overseas have stirred fears in the United States about job losses and other ill economic effects. In the Peterson Institute's newest study, Rising Tide: Is Growth in Emerging Economies Good for the United States? Lawrence Edwards and Robert Lawrence undertake an extensive survey of the empirical literature to date and more importantly conduct their own in-depth analyses of the evidence. They conclude that rapid growth in emerging economies is part of the solution to America's economic problems rather than their source.

Their conclusions contradict several popular theories about the negative impact of US trade with developing countries, demonstrating that trade has been tagged a villain far out of proportion to its actual impact on America's problems of slow income growth and rising inequality. Although many critics maintain that the decline in manufacturing in the United States has been caused by trade and "off-shoring" of jobs, the authors argue that the decline reflects a shift in domestic demand away from spending on goods, and faster productivity growth in the manufacturing, in which fewer workers are needed to maintain the same output.

"Some of the public's fears are well founded and recognized," Edwards and Lawrence say, noting that increased trade can cause "short-term pain in the form of job losses, lower profits, and the dislocation of people and communities." But Edwards and Lawrence say that trade and investment strategies that encourage growth in emerging economies will continue to be beneficial for both the United States and its trading and investment partners for the foreseeable future.

Citing the phrase attributed to President John F. Kennedy that "a rising tide lifts all boats," the authors say: "Developing country growth has therefore contributed toward faster US export growth, an increase in the variety of imports available to Americans, and higher terms of trade associated with any given trade balance."

Media Advisory: Working Paper Finds Currency Interventions Have a Bigger Impact Than Previously Believed

Many countries are accused of currency manipulation, the practice of buying foreign assets to keep the value of their currency low in order to improve their trade balances. But are such practices effective? In the Peterson Institute's latest Working Paper, [pdf] Joseph E. Gagnon finds that a country's current account (trade) balance increases between 60 and 100 cents for each dollar spent on official purchases of foreign assets. This is a much larger effect than is widely assumed, and suggests that although the problem of global current account imbalances is severe, it may be readily corrected through policy action.

The Working Paper provides evidence that currency intervention, or more broadly, net official purchases of foreign assets, have a powerful and sustained impact on current account imbalances. In particular, attempts by governments to prevent currency appreciation by buying foreign assets have succeeding in maintaining large current account surpluses.

You can view a PDF of the Working Paper online. [pdf] If you would like to speak with Gagnon, please contact Brian Reil at 202-454-1334 or media@piie.com.

Event Advisory: Canada's Minister of International Trade to Discuss US-Canada Relationship and TPP: March 14

WHO:
Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, Canada

WHEN:
Thursday, March 14, 2013
9:00 a.m. – 10:00 a.m.
(The conference will start promptly at 9:00 a.m.)

WHERE:
C. Fred Bergsten Conference Center
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036
(Metro: Red Line to Dupont Circle)

RSVP:
Brian Reil, media@piie.com
202-454-1334

Note:This meeting is open to all press but by invitation only to the general public.
If you plan to send a video camera please indicate this in your RSVP and have your videographer in place by 8:45 a.m.

The Peterson Institute will host a morning meeting on Thursday, March 14, with the Honorable Ed Fast, Canada's Minister of International Trade and Minister for the Asia-Pacific Gateway. Minister Fast will discuss the successful two-way economic relationship between Canada and the United States. He will also speak about the partnership's continued leadership on the world stage, including the Trans-Pacific Partnership and joint efforts to address environmental, economic, and energy security issues.

Minister Fast practiced corporate and commercial law for 24 years prior to being elected to the Canadian House of Commons in 2006, where he served on a number of parliamentary committees and chaired the Standing Committee on Justice and Human Rights. He was appointed to his current Cabinet position in 2011.

Brian Reil
Media Liaison
Peterson Institute for International Economics
1750 Massachusetts Avenue, NW
Washington, DC 20036
media@piie.com
www.piie.com
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