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Fischer, Nabiullina, Karnit Klug, Frenkel |
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On the face of it, not much. After all, the BIS continues to blast the Fed’s bubble-inducing monetary policies, which it says is leading the developed world into mutually assured currency destruction. Meanwhile, Russia and the US are in the midst of a new Cold War, with international finance as the key battleground.
We were, therefore, surprised to stage something of a détente between these warring monetary powers on the occasion of an awards reception held at the IMF annual meeting in Lima last month in honour of Nabiullina, the winner of Euromoney’s central bank governor of the year award for 2015. Fischer and Caruana enthusiastically flocked to her reception, as did a slew of top bankers and policy officials from around the world.
The rapprochement centred on mutual appreciation of inflation-targeting regimes and flexible exchange-rates to facilitate terms-of-trade shocks in emerging markets – the principal rationale for the Russian governor’s award.
The reception also brought together three generations of Bank of Israel chiefs: the current governor, Karnit Klug, her predecessor, the Fed’s Fischer, who holds dual Israeli-American citizenship, and Jacob Frenkel, now chairman of JPMorgan Chase International.
We look forward to what Euromoney’s sphere of influence brings next year.