key issues facing the global systems

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IE Alumni Forum Madrid, Spain September 14, 2012. Key Issues Facing the Global Systems. How should we think about a world turned upside down?. Unemployment Rates: Mature and EM. Auto Sales: Mature and EM. % of labor force. million units, saar. Who leads in a world turned upside down?. - PowerPoint PPT Presentation

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IE Alumni ForumMadrid, Spain

September 14, 2012

Key Issues Facing the Global Systems

10

15

20

25

30

35

40

2006 2007 2008 2009 2010 2011 2012

Mature Economies

Emerging Economies

million units, saar

Auto Sales: Mature and EM

4

5

6

7

8

9

10

2000 2004 2008 2012

Mature Economies

Emerging Economies(Excluding MENA)

% of labor force

Unemployment Rates: Mature and EM

How should we think about a world turned upside down?

IMF Quotas

Who leads in a world turned upside down?

64.8

35.2

Mature Economies

Emerging Countries

70.0

30.0

Nominal GDPpercent of board members percent of global

55.5

45.5

World Exportspercent of global

G3 Policy Interest Rates% per annum

0

1

2

3

4

5

6

2006 2007 2008 2009 2010 2011 2012

US

Euro Area

Japan

% of GDP

G3 Central Bank Balance Sheets

Can the world live with zero interest rates in the major economies?

5

10

15

20

25

30

35

2007 2008 2009 2010 2011 2012

FED ECB BoJ

0

50

100

150

200

250

300

350

2002 2009 2016 2023 2030

US

Euro Area*

Japan

General Government Gross Debt

% of GDP

The fiscal time bomb

*IMF Projections

%, GDP-weighted averages

GIIPS: Debt Sustainability

-6

-2

2

6

10

14

1996 2000 2004 2008 2012

Government Bond Yields

Nominal GDP, change overa year ago

% of youth labor force

Youth Unemployment

5

15

25

35

45

2000 2004 2008 2012

Germany

GIPS

Fundamentally, what is wrong with Europe?

IE Alumni ForumMadrid, Spain

September 14, 2012

Key Issues Facing the Global Systems

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