H. What do you believe are the greatest challenges facing the sector or industry you would like to specialize in? What role do you hope to be able to play in this sector or industry in the medium term?

1. Challenges faced by the financial industry
in the current decade

2. CONTENTS
• The return of socialist ideas to the global financial
arena
• Keynesian economics versus fiscal conservatism
• The slow and steady rise of the reminbi(RMB)
• Roles which I intend to play in the financial sector in
the medium term

3. CONTENTS
• The return of socialist ideas to the global financial
arena
• Keynesian economics versus fiscal conservatism
• The slow and steady rise of the reminbi(RMB)
• Roles which I intend to play in the financial sector in
the medium term

4. CONTENTS
• The return of socialist ideas to the global financial
arena
• Keynesian economics versus fiscal conservatism
• The slow and steady rise of the reminbi(RMB)
• Roles which I intend to play in the financial sector in
the medium term

5. CONTENTS
• The return of socialist ideas to the global financial
arena
• Keynesian economics versus fiscal conservatism
• The slow and steady rise of the reminbi(RMB)
• Roles which I intend to play in the financial sector in
the medium term

6. Socialism in the realm of globalization

7. • The global recession has given a boost for leftist and
socialist tendencies in the global economy.
Governments from Europe to Asia are holding back
on reforms and increasing protectionist barriers.
There has also been a rise of anti-establishment
political organizations.

8. This scenario will have far reaching effects
in the world economy
New
Limitations
on economic
migration
opportunities
Fiscal
conservatism
by
governments
Reduced
consumer
spending
Loss of
credibility for
existing
financial
organisations
The rise of
the federal
reserve/
reserve
banks

9. The rise of Reserve Banks.
In the current world economy , national reserve banks
and their governors/chairpersons have gained
prominence . It will be fair to say that most of the
difficult economic manoeuvring post-2008 was
carried out by these banks and their respective
chairpersons rather than most governments.
Appointments of reserve bank chairpersons in most
countries nowadays attract unusual national attention.
The subtle shift in economic decision making power from
governments to national reserve banks presents its own unique
challenges and demands a fresh rethink on policy making.

10. Keynesian economics
versus fiscal
conservatism

11. Keynesian economics or Keynesianism is
the view that in the short run,, economic
output is strongly influenced by net
demand (total spending in the economy)
Fiscal conservatism - Fiscal conservatism
is the economic philosophy of prudence
in government spending and debt.

12. • Basically Keynesian economics states that we can
spend our way out of a recession.
• Some of the prominent backers of Keynesian
economics include noble prize winning economists
like Paul Krugman.

13. • Some of the nations which pursued Keynesian
economics post-2008 with credible success include
the United States and China.
• The fiscal stimulus by the United States helped limit
the impacts of the recession on her economy and
returned the nation to a growth track in a short time
frame.
• China pursued an aggressive format of Keynesian
policies by spending billions buying goods for which
there was no demand and storing them in
warehouses. This policy helped keep intact her
manufacturing factory lines post-2008 and ensured
that they were ready when global demand returned

14. Fiscal Conservatism
Basically we save during an economic downturn and reduce national
debt . This is a traditional time tested approach to economic policy
making

15. • Nations which successfully implemented Fiscal
conservatism to help the economy include India .
• India with its culturally steeped tradition of saving
instead of spending combined with a traditionally
conservative reserve bank helped mitigate any
liquidity crisis from the economic downturn
• Many European nations are now adopting fiscally
conservative policies as a part of financing deals
and bail outs.

16. The rise of both Keynesian and conservative
economic policies may hold relevance in the short
term . But multiple nations pursuing opposing
economic policies will create diverse and polar
economic policies across nations.
This may hinder the long term objective of integration
of the world economy once the downturn years are
over.

17. The slow and steady rise
of the reminbi(RMB)

18. The reminbi or RMB is the national currency of
the peoples republic of China(PRC).
The internationalization of the RMB began in
the late 2000’s when the PRC allowed certain
mainland Chinese firms to settle payments
internationally using the RMB.
Backed by one of the largest economies
the use of RMB in Asia is on the rise.

19. Implications of the rise of RMB
• The reminbi has a great potential to be a major
trade currency of the future.
• There has been a rise in the number of RMB based
financial investment products.
• The growth of Hong Kong as a hub for offshore
reminbi investment products.
The RMB offers as much challenges as opportunities.
The reminbi is regulated by the peoples bank of China.
The regulation policies are not transparent and is
usually mixed with a lot of political overtones . This
scenario provides a challenging situation for investors
and nations as the use of RMB rises globally.

20. Roles which I intend to
play in the financial
sector in the medium
term

21. • An important aspect of any career is to grow in a
phased manner one step at a time.
Short Term- Gain as much knowledge as possible of the financial industry by
using various means of relevant education . I have already embarked on this
path by currently preparing for CFA Level 1.
Medium Term – Apply the knowledge gained in the industry to gain practical
experience and build base for a future entrepreneurial venture.
Long Term – Build own venture aimed at investments and investment products.