The global economy is a complex ecosystem interconnecting over 190 countries and more than 7 billion people. This web of trade, investment, business, politics and migration is not possible without strong leaders setting forth their plan. Although it’s not always easy to see the levers of power at work, we have a good idea of who wields them. The following article introduces readers to five of the world’s most powerful economic actors. Not surprisingly, the list is filled with heads of state and policymakers, highlighting the growing influence of monetary policy and government on global economics and finance.
- Vladimir Putin, President of Russia
Very few global leaders are as charismatic or polarizing as the “Russian bear.” Since assuming his third term as President of Russia on May 7, 2012, Vladimir Putin’s web of influence has expanded significantly. Putin was named the world’s most powerful man in 2014 by Forbes, ousting US President Barrack Obama. A few of the Russian bear’s 2014 highlights include annexing Crimea, backing rebel groups in Ukraine and landing a $70 billion gas pipeline deal with China, all while continuing to support Syrian President Bashar al-Assad’s fight against ISIS and other US-led rebel groups.
“The bear isn’t asking anyone for permission.” Putin said in a 2014 speech describing Russia.
We feel that excerpt perfectly describes Putin’s ambitions as President of the world’s sixth largest economy.
- Janet Yellen, Chair of the United States Federal Reserve
Arguably the second-most powerful person in the United States, the Chair of the Federal Reserve is appointed by the President, confirmed by the Senate and charged with managing the monetary policy of the world’s largest economy. In 2014 Janet Yellen was sworn in as head of the Fed, where she exerts tremendous influence on US interest rates, inflation, unemployment, investment and economic growth. The Federal Reserve’s influence amounts to hundreds of billions, perhaps even trillions, of dollars worldwide. Federal Reserve policy has direct influence over the global financial markets, international trade and the affairs of businesses ranging from small enterprises to multinational corporations. For this reason, the Fed is one of the most closely watched institutions in the world.
- Mario Draghi, Governor of the European Central Bank
Presiding over the 19-nation Eurozone, Mario Draghi exerts tremendous influence on the lives of more than 330 million people, an economy worth nearly $10 trillion. As Governor of the European Central Bank (ECB), Mr. Draghi heads one of the most powerful institutions in the world, one that has become increasingly vital to global markets over the years. Mr. Draghi’s speeches, commentaries and press conferences are closely followed by millions of investors, traders and consumers all over the world, as each and every tidbit could reveal important insights about the direction of Eurozone policy.
Faced with a challenging mandate, the ECB has expanded the size and scope of its monetary policy programs since the Great Recession and has wrestled with member-states like Greece over its place in the currency union. As head of those affairs, Mr. Draghi is by far one of the most powerful people in the world of finance.
- Angela Merkel, Chancellor of Germany
Although Chancellor Angela Merkel’s place on this list may seem less obvious, she heads Europe’s most powerful economy, and by extension, the region’s most pivotal player. Ms. Merkel plays a direct role in the economic, financial and foreign policies of Germany, the world’s fourth-largest economy and one of its most powerful financial and manufacturing centres. She was instrumental in confronting Vladimir Putin over Ukraine, as well as in levying heavy sanctions against the Russian Federation earlier this year. Ms. Merkel’s stance toward Greece was also paramount in getting Athens to capitulate to the troika’s demands, which ended a six-month impasse that kept Greece in the euro. As the Eurozone’s biggest and most powerful state, Germany will continue to produce the world most powerful economic and financial actors. Ms. Merkel is currently chief among them.
- Shinzo Abe, Prime Minister of Japan
Despite facing heavy criticism for his handling of the Japanese economy, Prime Minister Shinzo Abe is the only head of state to have monetary policy named after him. Under his guidance the Japanese government launched “Abenomics,” a three-pronged monetary policy strategy that uses fiscal stimulus, quantitative easing and structural reforms to fight Japan’s decades-long battle with deflation. This strategy unleashed one of the world’s largest quantitative easing programs ever in an effort to lift inflation and promote economic growth. Let’s just say the results have been mixed so far.
Mr. Abe plays a significant role in Japan’s economic, financial and foreign policies. Although Japan has lost some of its manufacturing backbone, it remains the world’s third-largest economy.
Risk warning: Forward Rate Agreements, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose.Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (Easy Forex Trading Ltd- CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (Easy Markets Pty Ltd -AFS license No. 246566).
Speak Your Mind