On the afternoon of October 28, 2010, Italian Professor Paolo Savona made an academic report entitled “Economic Exchange Rate Imbalances and Public Debt” at Room 418 of School of Economics in Yuquan Campus.

Professor Paul Savona is a senior professor at LUISS University in Rome, Italy, and former president of Bank of Rome sent by Italian government. In response to the 2008/2009 financial crisis, the Italian Government set up inter-bank deposit protection fund, and Professor Paul Savona was appointed president of the fund, dealing with the banking and financial institutional reform, savings and risk control of bank capital operations in crisis and post-crisis period. 

Professor Paul Savona began his speech with a saying of famous ancient Chinese thinker and educator Mencius, which aroused enthusiastic applause among the audience. He pointed out that the world economy is a closed economy. There are many institutional, legal and marketing obstacles caused by all kinds of imbalances, among which two are very important for the well-functioning of development mechanism: the balance of payments and central and local state budgets. Professor Paul Savona then did a comprehensive analysis on the imbalance between the European countries, the state's fiscal imbalances and how to respond to the fiscal imbalance. He also analyzed the source of the two deficits.

Then, Professor Paul Savona presented his unique views on Chinese monetary policy and public debt.

After the report, Professor Paul • Savona patiently answered questions from teachers and students.

School of Economic，ZJU.     

Financial Research Institute of ZJU     

October 31, 2010