How policy measures boost economic growth

Swiss Re calls for targeted fiscal policy measures and concrete pro-growth structural reform at the IMF, WB and IIF annual meetings.

Swiss Re Head Investment Strategy Jerome Haegeli discusses Swiss Re's participation in the annual meetings of the IMF, the World Bank and the Institute of International Finance in October.

These meetings are a great opportunity for Swiss Re to gain insight into the most recent thinking of policy makers. At the same time, attending them also ensures that the private sector perspective is heard. This is positive for our clients and us.

Topics discussed range from the current global macro-economic environment to financial markets, politics and the regulatory landscape. Summarising the key takeaways, there was a general consensus on the current state of the economy: Growth remains mediocre and political uncertainty is on the rise. It was also acknowledged that monetary policy has its limits and quantitative easing has a lot of costs. However, there was no clear view on the solutions.

In our view, central banks have become part of the problem. Instead of relying on central banks only, other policymakers should do their part. Specifically, targeted fiscal policy measures should go hand in hand with concrete pro-growth structural reform measures. Furthermore, we call for measures to strengthen capital markets, which includes efforts to create a tradable infrastructure asset class.

Supporting financial resilience

Re/insurance supports financial resilience by acting as a shock absorber and promoting growth through its core businesses. This is particularly important in a challenging and volatile macro-economic environment.

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