The Department of Economics at BZU held a lecture titled: "Global Imbalances and International Financial Reform" by Dr. George Abed, Governor of the Palestine Monetary Authority, on 7 June 2007.

The lecture s theme was the reasons behind global financial imbalances and the need to address them. It also tackled international trends in terms of averages of inflation, economic development and accelerating growth in international trade.

Abed clarified that in the past decade, rapid growth in foreign trade contributed to certain global financial imbalances, whereby big countries like China, Japan and oil countries achieved a surplus in their balance of trade. He added that simultaneously, the US suffered from an acute deficit amounting to more than 6.5% of the gross domestic product, concurring with a drop in the dollar s exchange rate and a budget deficit. In the case of European Union Countries, the overall balance of trade remained stable and the euro s exchange rate strengthened more recently.Abed raised and discussed the question whether the world economy is on the doorsteps of a financial crisis or if it will continue to prosper?

Dr Yousef Daoud, Chairperson of the Economics Department, highlighted the vitality of such informative lectures, through which the students get acquainted with local and international issues that would be very helpful in their future careers.

The lecture was attended by faculty members, as well as undergraduate and graduate students in Economics and Applied Mathematics in Economics. Researchers from local institutions like the Palestinian Economic Policy Research Institute (MAS), Palestine Monetary Authority and the Palestinian Central Bureau of Statistics participated in the discussion.