The 3rd day of International Summer School in Cracow was filled with speeches of very distinguished economists. The first keynote speaker was prof. Charles Goodhart from London School of Economics (known for Goodhart's Law). He presented some bold statements about current and future situation in Europe. Starting from comparing Spain and Arizona state he has showed that many popular beliefs about sources of USA fast recovery from crisis are incorrect. He stressed again that the main problem was private not public debt - that is why Maastricht criteria were not able to prevent current crisis. The main message was that not securitization but massive housing credits itself were toxic and source of crisis. In opposition to many economists prof. Goodhart claimed that splitting banks (like in USA) into retail and investment banks is misinterpretation of real core of current difficult financial situation.
The second speaker was President of National Bank of Poland prof. Marek Belka. As usually prof. Belka gave interesting and for moments even entertaining speech. He explained and gave some personal insights to current EBC policy, especially OMT (Outright Monetary Transactions). He keeps his finger crossed for Mario Draghi because OMT and other moves of Draghi give countries like Poland and UK some relief. He believes that the most important task of EBC now is to fight against investors that bet against Euro currency. At the end he stressed that he is ready to do whatever it takes in terms of defending polish złoty.
The 3rd day of International Summer School in Cracow was filled with speeches of very distinguished economists. The first keynote speaker was prof. Charles Goodhart from London School of Economics (known for Goodhart's Law). He presented some bold statements about current and future situation in Europe. Starting from comparing Spain and Arizona state he has showed that many popular beliefs about sources of USA fast recovery from crisis are incorrect. He stressed again that the main problem was private not public debt - that is why Maastricht criteria were not able to prevent current crisis. The main message was that not securitization but massive housing credits itself were toxic and source of crisis. In opposition to many economists prof. Goodhart claimed that splitting banks (like in USA) into retail and investment banks is misinterpretation of real core of current difficult financial situation.
The second speaker was President of National Bank of Poland prof. Marek Belka. As usually prof. Belka gave interesting and for moments even entertaining speech. He explained and gave some personal insights to current EBC policy, especially OMT (Outright Monetary Transactions). He keeps his finger crossed for Mario Draghi because OMT and other moves of Draghi give countries like Poland and UK some relief. He believes that the most important task of EBC now is to fight against investors that bet against Euro currency. At the end he stressed that he is ready to do whatever it takes in terms of defending polish złoty.
