| Abstract |
This seminar has two purposes. One is to understand the nature of finance and the current international monetary order that contributed to the root cause of the global financial crisis. They are the financial system risk caused by maturity transformation, which is the core of the financial activity, the procyclicality of finance in which credit expands in an asset market boom and shrinks in a recession, and safe assets, etc. Another is to understand the ripple effect of the 21st century digital technology revolution. Just as cryptocurrencies cause conflicts with states monopolizing creating money, currencies based on digital platforms are causing conflicts with existing finance by shifting the core function of finance from intermediation to payment and settlement. Moreover, the democratization of finance thanks to the development of digital technology is another conflicting factor against the existing elite-centered finance, where the financial elite evaluates risks and receives rewards. Along with asset inflation, the pandemic has significantly increased debt on the one hand and accelerated the digitalization of finance on the other. The challenge in the post-pandemic era is to normalize increased debt and liquidity to a sustainable level while minimizing economic costs, and to come up with an alternative solution to the dilemma of the dollar-centered international monetary order. The first day of the seminar will focus on the attributes of finance, and the second day will discuss the challenges facing finance in the post-pandemic era and the digitalization of finance. |
