4105084: 33rd After-Work Lecture: Built To Fail - How Flaws in The Global Monetary System Produce Deflation

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Semester:SS 16
Scheduled in semester:1
Semester Hours per Week / Contact Hours:4.0 L / 3.0 h
Self-directed study time:0.0 h

Module coordination/Lecturers


Master's degree programme in Banking and Financial Management (01.10.2008)
Master's degree programme in Finance (01.09.2015)


  • A capital exodus from EM, particularly China, tightens monetary policy given their exchange rate targeting regimes.
  • Such tightening depresses global growth and inflation and pushes real rates of interest higher in the developed world.
  • As savers and not central bankers have to buy US Treasuries then US corporate bonds and equities are sold pushing up the cost of capital.
  • The prospects of debt default rise as deflation takes hold and real rates of interest rise in the emerging and developed world.
  • A credit crisis when policy interest rates are so low means a major bear market for global equities.



19.05.201617:30 - 19:00