On October 31, the PBC School of Finance at Tsinghua University (Tsinghua PBCSF) invited Paul Romer, 2018 Nobel laureate in Economics Sciences and a University Professor in Economics at New York University, to hold a closed-door academic seminar. Experts and scholars from governments, universities, research institutes and financial institutions attended the event. The seminar was presided over by Zhu Min, Chair of the National Institute of Financial Research, Tsinghua University.

(A scene of the seminar)

During his keynote speech, Paul Romer explained through quadrants the four possibilities of innovation and the role of governments can play in it. The main issues are regarding about governments’ role in and functions of financial regulation, use of financial instruments by central banks, and the world’s reserve currency system, among others. He also exchanged views with guests present at the seminar over the feasibility of a new reserve currency system against the current world economic background.

(Paul Romer spoke during the seminar)

During the discussion, Zhu Min pointed out, in the process of creating something similar to special drawing rights (SDR), it is essential to consider the involved exchange rates and its link to real assets. Zhu also expressed his opinions on the pricing of growing risks, solvency assessment and whether bond issuances based on economic growth are sustainable, among other issues raised by Paul Romer.

(Zhu Min spoke during the seminar)

Moreover, the guests also discussed such issues as safe assets, reserve currency, digital currency, RMB internationalization, and the weighing of equities and creditor’s rights.

 

(A group photo of the guests)