Global finance

Rethinking Global Finance

Supporting the Research and Policy Voice of Emerging Economies

Throughout the Initiative we seek to combine the work on global challenges of financial development and financial stability with efforts to better understand the specific local contexts in which these challenges manifest themselves and confront national policies

The global financial crisis has exposed serious government and market failures and questioned some of the basic tenets of prevailing economic thought. The post-crisis monetary and regulatory response has been significant in many areas. Yet many fundamental questions persist, and new ones have arisen. The latter include the new post-crisis mandate and role of central banks, the effectiveness of the new global regulatory framework, and the possibilities and systemic risks associated with new financing models emerging, to name a few.

Much of the post-crisis intervention has been driven by advanced country considerations. This is true even though emerging economies have had a stronger voice in crisis management and post-crisis regulatory discussions than ever before. The G20 process has proved a reasonably workable platform for global discussions, first circumventing and then leveraging the traditional global IFIs. Emerging market G20 presidencies have put their concerns more confidently on the policy table. China’s current G20 Presidency is further elevating emerging economy issues on the global agenda. Yet the redesign of the global financial architecture, particularly when viewed from the perspective of emerging economies, is far from balanced or complete.

At the same time, financial sectors, also in emerging economies, have undergone major transformations in non-banking segments, including the “shadow banking sector”, and the digital-technological product revolution is now also impacting some emerging economies. These developments challenge old banking models, even traditional “utility banking”, with tremendous opportunities particularly for emerging economies, but also significant risks in the absence of appropriate regulation.

Throughout the initiative, we seek to combine the work on global challenges of financial development and financial stability with efforts to better understand the specific local contexts in which these challenges manifest themselves and confront national policies.

Vision and objectives


The transformation of global financial architecture in the wake of the crisis has to engage more profoundly with the perspectives of emerging economies, drawing on top-notch research and knowledge, including in emerging economies themselves. The Rethinking Global Finance initiative aims to strengthen the research capacity and policy voice of key emerging economies. Only on this basis can a truly global and inclusive financial architecture be developed. The initiative informs global policy making, including in the context of the G20.


This initiative aspires to:

  • contribute to research and policy discussions on a number of global issues in the monetary, regulatory and financial sector development areas,
  • foster collaboration across key emerging economies as well as between emerging and advanced economies, and
  • support emerging economies’ efforts to better understand, and ultimately develop, an evidence-based set of recommendations for policy makers and inform the efforts of the G20 to reform the global financial system. This initiative will inform and complement G20 and other official sector efforts as well as various processes set up by the private sector.


Initial inventories and discussions have identified a number of issues for research and policy thinking:

  • International spillovers of national monetary policies. Monetary policies remain nation-based with little international coordination despite their potentially major cross-border spillovers in today’s globalized world. Representatives of emerging economies have voiced concerns over the impact of monetary policy in advanced economies; recent experience also points to such spillovers from major emerging economies. A much better understanding of these externalities could help inform policy responses; facilitate monitoring and eventual policy coordination; and avoid escalating competitive interventions.
  • Central bank mandate, governance and overall policy mix post-crisis. There are important lessons to be drawn for emerging market policy makers regarding central bank mandate, targets (including exchange rate volatility issues), governance/independence, and relationship with the fiscal authority, including the financing of fiscal deficits. Advanced countries' central banks have started "normalizing" their policies, but what should be the "new normal"?  Debates in this area can be informed by emerging market-based research and perspectives. 
  • Monetary transmission mechanisms in emerging markets. The global financial crisis has brought out important differences in monetary and credit transmission between advanced and emerging economies, but also across emerging economies. Research is needed to better understand these differences and their implications and the critical importance of appropriate domestic policies.
  • Transformational impact of the digital revolution on financial markets. Could the technological developments such as peer-to-peer banking, crowdfunding and big data allow emerging economies to “leap-frog” traditional banking systems? What should be the appropiate approach towards digital products and cryptocurrencies? What are the implications of these developments for financial access and macroeconomic stability?
  • State-owned financial institutions and market imperfections. What are the appropriate mandates and role of these institutions in financial sector development? Emerging economies have been liberalizing their capital accounts, but what is the evidence on the impact of this opening up in the presence of market imperfections? What is the empirical evidence on the impact of directed lending? Under what conditions can state-owned institutions enable, rather than crowd out, the private sector?

Outcomes, projects and structure


These include:

  • cutting-edge independent research papers that combine global expertise with local knowledge and skills
  • significant input into global debates and informing and shaping the new financial architecture
  • strengthened capacity of local research to support senior policy makers in emerging economies
  • cross-fertilizing research events involving lead researchers from emerging economies and global experts
  • new research networks.


  • ESRC project
  • Rockefeller project
  • Swedish project


This initiative is led by LSE IGA, involving the LSE Financial Markets Group, the Brevan Howard Centre for Financial Analysis at Imperial College London and INET. It is chaired by Lord Adair Turner, Chairman of INET and former head of the UK’s FSA and chair of the Financial Stability Board Standing Committee for Regulatory Cooperation. A similar constellation – a senior policymaker and a research group – will be created in each of the large emerging economies: India, China and Russia, and discussions are under way with other countries. We are also linking up on specific events and projects with other organisations, such as the Reinventing Bretton Woods Committee (RBWC) and the World Economic Forum Global Agenda Council on the Global Financial System, both with links to the G20 process.



  • Innovations in Global Financial Governance & the Role of Emerging Economiesco-organised by the LSE-IGA and its constituent LACC and the Reinventing Bretton Woods Committee (RBWC) and hosted by Banco Hipotecario, Buenos Aires, Argentina, March 20, 2018. Speakers: Erik Berglöf, LSE; Eduardo Levy Yeyati, Harvard and Di Tella University; Isabelle Mateos y Lago, Blackrock; Reza Moghadam, Morgan Stanley; Alexandre Tombini, IMF; Jin Zhongxia, IMF; Marc Uzan, RBWC; Ousmène Jacques Mandeng, LSE; Luiz Awazu Pereira da Silva, BIS; Manuel Ramos-Francia, Banco de México; Martín Redrado, Fundación Capital; Mario I. Blejer, Banco Hipotecario and LSE; Miguel Kiguel, Econviews & Di Tella University; Paul Samson, Ministry of Finance, Canada; Gareth A. Jones, LSE; Marcello Estevão, Ministry of Finance, Brazil; Daniel Funes de Rioja, B20 Sherpa; Hector Torres, Centre for Governance Innovation with keynote address by Pablo Andrés Neumeyer, Central Bank of Argentina.
  • Digital Currencies with Yves Mersch, lecture co-organised by LSE IGA and OMFIF, February 8, 2018. Speaker: Yves Mersch, European Central Bank (ECB).
  • Global Financial Integration, event co-organised by the LSE IGA and Tsinghua University under the ESRC project, with presentations by Erik Berglöf, LSE; Keyu Jin, LSE; Zhu Ning, Tsinghua University; Piroska Nagy-Mohacsi, LSE; Bai Chong-En, Tsinghua University; He Zhiguo, University of Chicago; Liu Qing, Tsinghua University; Huang Yi, Graduate Institute, Geneva; Zhou Hao, Tsinghua University, Beijing, China, December 13, 2017.
  • Fractures in Globalisation and Implications for the Emerging Economies, a Thought Leaders Event co-organised by IGA with its constituent centre LACC, INET and CIDE as part of the World Congress of the International Economic Association (IEA), Mexico City, Mexico, June 19, 2017. Speakers: Nobel Laureate Joseph Stiglitz, Tim Besley, Erik Berglöf, Mario Blejer, LSE; Andres Velasco, Columbia University; Kaushik Basu, Cornell University; Anne Krueger, John Hopkins SAIS; Robert Johnson, INET; Chong-En Bai, Tsingua University along with policy makers Guillermo Ortiz, Alicia Barcena, Monica Aspe, Enrique Cardenaas, Eva Arceo and Jorge Suarez Velez.
  • Banking in the Balance, as part of the launch of G-POL with Raghuram Rajan, University of Chicago; Zhu Ning, Tsinghua University; Lord Adair Turner, INET and Lord Nicholas Stern, LSE, May 17, 2017.
  • RGF joint conference with the Bank of Russia, keynote speech by Governor Elvira Nabiullina, St Petersburg, Russia, June 30, 2016.
  • RGF LSE IGA conference, co-organised with the Centre for Economic Policy Research (CEPR) and the Reinventing Bretton Woods Committee (RBWC) and focusing on one of the key themes of the Chinese G20 Presidency on the international financial architecture, London, UK, May 5-6, 2016.
  • RGF joint conference with Fudan University and the Shanghai Capacity Building Foundation, with keynote speech by First Deputy Governor Yi Gang of the People's Bank of China, Shanghai, China, February 25, 2016.
  • RGF joint conference with the Reserve Bank of India: Global launch of the initiative in India, chaired by Governor Raghuram Rajan, Governor of the Reserve Bank of India, Mumbai, India, January 27, 2016.

Public Events:

  • EuroTragedy: a drama in nine acts (and counting), PowerBreakfast Series, June 19, 2018. Speakers: Ashoka Modi, Princeton University and Francesco Caselli, LSE.
  • Politics and Central Banking - Reflctions by YV Reddy, PowerBreakfast Series, February 28, 2018. Speakers: Dr Yaga Venugopal Reddy, former Governor of the Reserve Bank of India and Maitreesh Ghatak, LSE.
  • China's Guaranteed Bubble and its Global Implications, PowerBreakfast Series, January 30, 2018. Speaker: Professor Ning Zhu, Tsinghua University.
  • The Outlook for the Banking Union: Completion or Redisign? Macro Forum, January 22, 2018. Speakers: Nicholas Veron, Bruegel and Peterson Institute, and Shahin Vallee, Soros Foundation.
  • Can macroprudential measures make cross-border lending more resilient? Lessons from the taper tantrum, November 30, 2017. Speaker: Dr Elöd Takáts, Financial Systems and Regulations at the Bank for International Settlements.
  • Is this Time Different? Seminar with central bankers and academics co-organised with Deutsche Bank and RBWC during the IMF-World Bank Annual Meetings, Washington DC, USA, October 14, 2017.
  • The Fall of Technocracy, PowerBreakfast Series, November 8, 2016. Speakers:  Sebastian Mallaby, Council on Foreign Relations and Charles Goodhart, LSE.
  • Financial Stability in the Eurozone-ECB workshop, European Central Bank public presentation on key findings og their new financial stability report , June 13, 2016. 
  • Rethinking the Global Monetary System, LSE public lecture, May 10, 2016. Speaker: Dr Raghuram Rajan, Governor of the Reserve Bank of India.
  • Central Bank Power Grab, PowerBreakfast Series, May 6, 2016. Speakers: Mario Blejer, LSE IGA Visiting Professor; Ricardo Reis, LSE and Peter Sands, former head of Standard Bank.
  • Volatility and the Political Economy of Financial Regulation, PowerBreakfast Series, March 17, 2016. Speakers: Anat Admati, Stanford Graduate School of Business; John Kay, LSE and Charles Goodhart, LSE.

  • China's Economic Adjustment, PowerBreakfast Series, March 10, 2016. Speakers: Michael Pettis, Carnegie Endowment and Keyu Jin, LSE.
  • Alibaba: The House That Jack Ma Built, LSE public lecture, November 9, 2015. Speaker: Duncan Clark, OBE, IGA Visiting Fellow.