some developing nation markets because they lack the sophisticated risk - measurement techniques used by the world's biggest banks. indeed, the accord could smooth the punishing volatility of capital flows in and out of emerging markets as banks and investors better understand lending risks by applying the new rules. “ good risk management should also support emerging markets, ” he said. caruana said he welcomed china's announcement in august that it would delay adoption of the new accord, introducing its own rules in the meantime as its capital - weak banks struggled to modernise and reform. “ it was perfectly consistent with what we were saying... a right timing and a proper sequencing was important, not to rush, ” he said. * * * caruana, man of simple taste, faces complex basel ii bank of spain governor jaime caruana is a man of simple tastes. a recent visitor to the bank of spain commented on the elaborate chandeliers in a conference room, a mass of coloured glass grapes. “ i love those chandeliers, ” the visitor said. “ personally i find them rather excessive, ” caruana replied. for a fan of the simple, it's no small irony that caruana is driving a highly complex rewrite of global bank safety rules as the head of the basel committee on banking supervision, in one of the most dramatic and controversial financial reforms ever. in his most difficult job to date, caruana took control of the committee at a time of unprecedented criticism for new basel capital accord or basel ii, designed to replace the 1988 accord that set out how banks allot cash to buffer against surprise risks. the agreement being drafted by global regulators is now under fire from banks who say it is convoluted, expensive, heavy - handed and poorly tested, and who now seek to stall or derail it. not devoid of a dry sense of humour and with a shy smile, caruana is known as a diligent and rigorous technocrat, a fan of teamwork who avoids showiness. “ the core of the issue is whether caruana will be able to demonstrate his leadership in the next couple of months, ” said one committee member who works directly with caruana, who spoke under the condition of anonymity. “ it's not easy to guide such a group of self - confident people, ” the committee member said. “ he's just trying to fight his way. ” part of the problem

economic theory there is little doubt that international trade has a net positive effect on the level of activity and global welfare. however, we know that in reality this is so when we compare aggregate aspects of the economy in two different equilibria, one with little international trade and another with a high https : / / www. bankingsupervision. europa. eu / ecb / pub / ra / html / ssm. ra2020 ~ a9164196cc. es. html # toc3 see the latest progress report of the task force on climate - related financial disclosures ( 2019 ), available at : https : / / www. fsb - tcfd. org / wp - content / uploads / 2019 / 06 / 2019 - tcfd - status - report - final - 053119. pdf pablo hernandez de cos ( 2019 ), global imbalances and capital flows in the era of new technologies, opening remarks, banco de espana and the reinventing bretton woods committee. available at : https : / / www. bde. es / f / webbde / gap / secciones / salaprensa / intervencionespublicas / gobernador / arc / fic / h dc100919. pdf pablo hernandez de cos ( 2020 ), “ multilateralism and globalisation reforms ”, presentation of the book excesos : amenazas a la prosperidad global, by emilio ontiveros. available at : https : / / www. bde. es / f / webbde / gap / secciones / salaprensa / intervencionespublicas / gobernador / arc / hdc280120en. pdf level. however, as professor alan blinder reminds us, we need to pay attention to the transition costs of the reforms and not only their long - run effects, and to analyse the redistributive implications, as well as the impact of policies on efficiency. 8 the fact that economists and economic policymakers have underestimated the importance of communicating and mitigating the adverse effects that the transition to a more globalised economy were going to have on certain sectors of the population has been decisive in the emergence of movements opposing this process. this error, the consequences of which we are still suffering, should not be repeated in the case of economic sustainability. the role