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- Title
Sovereign wealth funds and global imbalances.
- Authors
Gieve, John
- Abstract
In this speech, Sir John Gieve, Deputy Governor for financial stability, discusses the impact of sovereign wealth funds (SWFs) on the global financial system. He argues that the recent rapid growth of SWFs is a result of persistently large global imbalances, which, in turn, have helped create vulnerabilities in the world economy and financial system. That said, he argues that the fact they, and their central banks, are looking for higher returns and asset diversification should improve the efficiency of global asset allocation. Their long-term investment horizons should also help to moderate financial market downturns. However, he concludes that some increase in the transparency of these funds and the recipient country's approach to them would be helpful to ensure that they contribute to further global financial integration rather than act as a catalyst for a new wave of financial protectionism.
- Subjects
SOVEREIGN wealth funds; INTERNATIONAL finance; ASSET allocation; INVESTMENT policy; CENTRAL banking industry; INTERNATIONAL economic relations
- Publication
Bank of England Quarterly Bulletin, 2008, Vol 48, Issue 2, p196
- ISSN
0005-5166
- Publication type
Article