WTFinance China Challenge to Provoke New Economic Cold War? with Sir Paul Tucker
Interview recorded - 1st of May, 2023
On todays episode of the WTFinance podcast I had the pleasure of welcoming Sir Paul Tucker.
Paul spent more than 3 decades in Central Banking, culminating in being the Deputy Governor of the Bank of England. He is also the author of the recently released book “Global Discord: Values and Power in a Fractured World Order”.
During our conversation we spoke about the threat of a global fracturing, why China is unlikely to change, what a China/US split would look like and how Central Banking could change in the future. I hope you enjoy!
0:00 - Introduction
1:05 - Influence for writing the book?
2:35 - What was the previous global order and why does China want to change it?
6:35 - Why was China conflict on Paul’s radar?
8:55 - Were Western politicians naive about China?
13:35 - Document 9 of the Chinese Communist Party
18:40 - Russia Central Bank reserves frozen
20:35 - Why is WTO and other international organisations brittle and how could China change these organisation?
24:15 - What would a US/China split look like?
29:05 - Best case scenario?
31:40 - How have central banks changed in the last decade?
39:45 - How should banks be saved?
42:15 - How can central banks recover their trust?
53:15 - Why Central Banks need to be tougher on shadow banks?
57:50 - One message to takeaway from our conversation?
Sir Paul Tucker is a Research Fellow of the Mossavar-Rahmani Center for Business and Government at the Harvard Kennedy School.
He is the author of Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State (2018). Described as “masterful” by Dani Rodrik and “profoundly important” by Larry Summers. His new book, GLOBAL DISCORD: VALUES AND POWER IN A FRACTURED WORLD ORDER, due out in FALL 2022, is about the geopolitics and legitimacy of the international economic and legal system. Both books are at the interface of political economy and political philosophy.
Tucker spent more than three decades in central banking, occupying senior positions in the international policymaking world, and was knighted by Britain in 2014.
From 2016 to 2021, he was the chair of the Systemic Risk Council, the independent body of former top central bankers, government officials and financial experts dedicated to a stable financial system.
As Deputy Governor at the Bank of England from 2009 to October 2013, he was at the centre of efforts to contain the financial crisis and to reshape the international regulatory framework for financial stability. Former Governor of the Bank of England Mervyn King said, “Paul probably understands more about central banking than anyone else. He knows about every aspect of that arcane art and now he [is] free to tell the rest of the world what happens behind those high walls.”
At the Bank of England, he was a member of the Monetary Policy Committee, Financial Policy Committee (vice chair), Prudential Regulatory Authority Board (vice chair), and Court of Directors. During his thirty-plus years there, he led staff teams on monetary policy strategy, market operations, and financial stability, as well as working as a bank supervisor. He had secondments to an investment bank and to Hong Kong, where he helped reform their securities markets and regulation following the 1987 stock market crash.
Sir Paul Tucker:
Website - http://paultucker.me/
Book - https://www.amazon.co.uk/Global-Discord-Values-Power-Fractured/dp/0691229317/ref=nodl_?dplnkId=3426bdbe-6afd-42ab-8c93-2c0288832a5a
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