Selected Risks of the World Economy

Institute of Economic Research SAS organized an international scientific seminar on the current topic "Selected problems of the world economy." In addition to Institute of Economic Research SAS workers on the following scientific seminar presented papers foreign experts: prof. Krejci, Ing. Malý and Ing. Tanner.

Individual presenters in their speeches highlighted some selected risks of the world economy. In addition to economic risks (high debt of the public sector, financial institutions, non-financial institutions and households, growing income inequality, negative demographic trends particularly in industrialized countries) Some of presenters pointed to geopolitical risks and their impact on the world economy.

Uncertain and uneven development of the world economy from the global financial crisis is the result of an uncoordinated approach to adopting and implementing the various kinds of economic policies. Despite the fact that central banks used all possible and available instruments of non-standard monetary instruments (quantitative easing, negative interest rates, monetary financing), it can conclude that they are less effective. To ensure sustainable and balanced global economic growth and is necessary to use other instruments of economic policy as fiscal policy and implementation of the necessary structural reforms.

Presenters in their speeches highlighted the fact that increase global aggregate demand can be provided in the way that will increase the effective demand of the population. Deepening the process of uneven income distribution may not only lead to a slowdown in global aggregate demand, but also to possible social problems. It will therefore be necessary to adopt measures on tax havens, the fight against corruption and other undesirable practices, which lead to a reduction in income.

In the context of economic development in each country of the European Union it was presented analytical view of current developments. In this context, it was made a deep analysis of the gradual reduction in the competitiveness of some EU countries and also pointed to the divergence process in some countries. In order to stabilize economic developments in the EU it needs to be accompanied by a coordinated effort with the implementation of the necessary structural reforms in the EU. Improvement of the management of the entire European Commission at all levels is now more than necessary.

Specific feature of the risks of the current development of the world economy is growing financialization process of individual economies and incomplete process of bank restructuring and the adoption of a regulation. Despite the declared efforts of the Group 20 to adopt regulatory measures to stabilize the financial sector, especially in the banking sector so far failed to implement these measures in full, especially in industrialized countries.

A new phenomenon in the development of the world economy is the started process of the fourth industrial revolution that will have unprecedented consequences for the further socio-economic development. Therefore, in this context, presenter pointed to the need for lifelong learning and the adoption of measures in the labor market.

According to the relatively large interest of participants in this research seminar, the leadership of Institute of Economic Research SAS will prepare another scientific seminars that will respond to the most topical issues of the current economic, monetary, financial, fiscal, social, technological and geopolitical developments.

The conference was organized with the support of VEGA 2/0005/16 project