ABU DHABI, Apr. 19th, 2010: INSEAD, the leading international business school, recently hosted its first International Alumni Association (IAA) event on the school's Abu Dhabi Campus. Dr. Philippa Malmgren, internationally renowned policy expert, and former US President's financial market advisor, served as the keynote speaker. Alumni and regional leaders attended the lecture to hear Dr. Malmgren deliver a talk on 'Politics, Policy and Geopolitics: The Risk to the Markets.'Dr. Malmgren focused her talk on key issues related to the world economy and the impact the financial crisis has had on the balance of power between states and markets. She emphasised how this shift in power will change the world economy for years to come and discussed the risk associated with inflation.
'We are honoured to have Dr. Malmgren as our guest speaker at INSEAD's first International Alumni Association event in Abu Dhabi,' said Hal Gregersen, Affiliate Professor of Leadership at the Abu Dhabi campus. 'Her lecture provided regional experts an insightful look into critical matters surrounding risk and economy and the probable events on the horizon which will undoubtedly affect business leaders, decision makers and investors.'The event, sponsored by Abu Dhabi Commercial Bank (ADCB), was attended by senior representatives from leading regional companies. Dr. Malmgren addressed inter-country relationships such as the U.S. and China and the impact these dealings have on the investor community. Dr. Malmgren elaborated on the evolution of the world economy since the fall of the Berlin Wall and explained why the great moderation of inflation is no longer working in the same way as it once did. "There are a few challenges facing world economies, including the enormous debt burden of Western countries which is pushing interest rates up, in countries like Greece, Portugal and even in the United States. The other big issue today is inflation rather than deflation, especially in the emerging markets, where inflation is picking up very rapidly" said Dr Malmgren. "In China, the inflation rate exceeds the deposit rates while India is witnessing higher inflation and the reserve bank of India is having to raise interest rates more rapidly than they expected. This is due to higher input costs for food, commodities and agriculture."Dr. Malmgren, ex-advisor on international economic issues to George W. Bush during his Presidential campaign, is an expert on helping investors and business managers better understand how the global political and policy environment may influence prices in financial markets and the world economy. Her clients include the investment committees of many of the world's largest investment banks, fund managers and hedge funds, as well as corporations. Dr Malmgren added, "The GCC can form a much stronger economic union and it will happen in time. However, what the GCC decide in terms of their currency being linked to the US dollar and the possibility of moving away to a basket of currency will be paradoxical. The basket currencies which include the euro and sterling are falling, which could expose the GCC to more inflation. Although inflation is an important issue for policy makers within the GCC, the oil price of $80 per barrel may be affected by the world economy if there is a slowdown. However, the price of oil in such circumstances will not fall below $30 per barrel which will keep revenue flows in the GCC and therefore inflation on the higher side."INSEAD's International Alumni Association was founded in 1961 by a group of alumni and has since worked closely with INSEAD to provide services to the global alumni community. The IAA regularly hosts events for alumni across INSEAD's three campuses in Abu Dhabi, Europe (France) and Asia (Singapore). About the speaker, Dr. Philippa MalmgrenDr. Malmgren regularly visits with leading policy-makers among the offices of heads of government, the boards of central banks and elected and appointed officials among the G7 countries in order to discern how the political and policy environment will influence prices in financial markets. She keeps asset managers, traders and investors informed about these policy risks to their portfolios. Dr. Malmgren served as an advisor on international economic issues to George W. Bush during his Presidential campaign. Subsequently, she joined the White House as Special Assistant to the President for Economic Policy on the National Economic Council. She was a member of the President's Working Group on Financial Markets and the President's Working Group on Corporate Governance. While in the White House, she was responsible for all financial market issues for the President, which included corporate governance, bank regulation, Government Sponsored Enterprises, mortgages, deposit insurance, terrorism insurance issues, anti-money laundering, and international finance issues. She acted as a liaison between the White House and all the financial regulators including the Federal Reserve and the SEC. Dr. Malmgren was assigned to the White House Office of Homeland Defence Working Group on Terrorism Risks to the Economy. Before joining the administration, she was President of Malmgren and Company in London, England. Dr. Malmgren has received numerous international accolades for her work, including recognition by the World Economic Forum as a 'Global Leader for Tomorrow.' She is a member of the Council on Foreign Relations, the Royal Institute for International Affairs, the Institute for International Strategic Security, The National Association of Business Economists, and the British Institute of Directors.Copyright Emirates News Agency (WAM) 2010.
