Press Releases
ISB hosts Nobel Laureate Lars Peter Hansen
ISB hosts Nobel Laureate Lars Peter Hansen
· Full impact of Brexit will take some more time to play out, warns the authority on market risk
· Controlling inflation and oversight on banking system should be the prime focus of regulators, stresses laureate
July 25, 2016: Brexit has infused a lot of uncertainty in to the financial markets though it will take a while for the full impact on the global economy to play out, according to Professor Lars Hansen, the 2013 winner of the Nobel Prize for Economics and an expert on economic dynamics and world renowned authority on market risks.
Given that financial markets are always forward looking and unfortunately investors have to make guesses, the uncertainty is likely to continue for some more time, Professor Hansen, who was interacting with captains of industry at an engagement hosted by the Indian School of Business (ISB) in Mumbai said.
The David Rockefeller Distinguished Service Professor of Economics at the University of Chicago who is in India at the invitation of ISB to attend the ISB Summer Research Conference 2016 in Finance took time out to meet industry representatives in Mumbai at the event held under the aegis of the NSE-ISB Investment Laboratory. The conversation was moderated by Bhagwan Chowdhry, Professor of Finance at UCLA Anderson School of Management and a regular contributor to pedagogy and thought leadership at ISB.
Professor Hansen’s work on asset pricing models based on the General Method of Moments (GMM), for which he was awarded the Nobel Prize, helps us understand why security prices move in a particular manner, have become part of standard tool kits of institutions and universities to understand the behaviour of markets.
Perhaps people put too much faith in the information they were getting on Brexit which led to clouding of their own judgement, felt the Nobel Laureate who took questions on a range of topics from Brexit and gold as an asset class to the US monetary policy and his own record as a student in school.
Commenting on economic models and financial markets, Professor Hansen felt it would be smart for people to take steps even before they understood the dynamics of how economic models would play out. “Just because we don’t understand something does not mean we should not do something about it,” he said adding that trying to build models just to understand them better would be a false proposition. There are limits to understanding things.
Responding to a question on monetary policies with particular reference to India, the Nobel Laureate said the central banks should continue to focus on controlling inflation apart from encouraging FDI through policy intervention. At the same time central banks also need to exercise adequate oversight of the banking system as has been the case in India, he felt. Another area that India needed to address is changing labour market regulations, he added.
Earlier, welcoming the gathering Rajendra Srivastava, Dean ISB and Novartis Professor of Marketing Strategy and Innovation, said research and thought leadership mattered the most for any educational institution and ISB put immense premium on both. “While India is talking about Gyan now, ISB had some 15 years back put faith in its own gyan network of global faculty which has benefited immensely”, he said referring to the unique faculty engagement model at ISB. Not surprisingly we are the only Indian business education institution to figure in several global research rankings today, he added.
In fact, ISB is the only Indian academic institution across all disciplines to be ranked in the top 100 worldwide for the quality of its research. As part of this vision of furthering research in economics and management, the school invited Professor Lars Hansen to visit ISB.
About ISB
The Indian School of Business (ISB) is a global Business school offering world-class management education across its two campuses – Hyderabad and Mohali. The School has grown at a rapid pace since its inception and already has several notable accomplishments to its credit – it is the youngest school ever to consistently rank among the top Global MBA programmes, the first institution in South Asia to receive the prestigious AACSB accreditation, one of the largest providers of Executive Education in Asia, and the most research productive Indian management institution. A vibrant pool of research-oriented resident faculty, strong academic associations with leading global B-schools and the backing of an influential Board, have helped the ISB fast emerge as a premier global Business school in the emerging markets. For more details visit www.isb.edu.
C Chitti Pantulu
Director, Marketing and Communications
Indian School of Business
Email: chitti_pantulu@isb.edu
http://www.isb.edu
· Full impact of Brexit will take some more time to play out, warns the authority on market risk
· Controlling inflation and oversight on banking system should be the prime focus of regulators, stresses laureate
July 25, 2016: Brexit has infused a lot of uncertainty in to the financial markets though it will take a while for the full impact on the global economy to play out, according to Professor Lars Hansen, the 2013 winner of the Nobel Prize for Economics and an expert on economic dynamics and world renowned authority on market risks.
Given that financial markets are always forward looking and unfortunately investors have to make guesses, the uncertainty is likely to continue for some more time, Professor Hansen, who was interacting with captains of industry at an engagement hosted by the Indian School of Business (ISB) in Mumbai said.
The David Rockefeller Distinguished Service Professor of Economics at the University of Chicago who is in India at the invitation of ISB to attend the ISB Summer Research Conference 2016 in Finance took time out to meet industry representatives in Mumbai at the event held under the aegis of the NSE-ISB Investment Laboratory. The conversation was moderated by Bhagwan Chowdhry, Professor of Finance at UCLA Anderson School of Management and a regular contributor to pedagogy and thought leadership at ISB.
Professor Hansen’s work on asset pricing models based on the General Method of Moments (GMM), for which he was awarded the Nobel Prize, helps us understand why security prices move in a particular manner, have become part of standard tool kits of institutions and universities to understand the behaviour of markets.
Perhaps people put too much faith in the information they were getting on Brexit which led to clouding of their own judgement, felt the Nobel Laureate who took questions on a range of topics from Brexit and gold as an asset class to the US monetary policy and his own record as a student in school.
Commenting on economic models and financial markets, Professor Hansen felt it would be smart for people to take steps even before they understood the dynamics of how economic models would play out. “Just because we don’t understand something does not mean we should not do something about it,” he said adding that trying to build models just to understand them better would be a false proposition. There are limits to understanding things.
Responding to a question on monetary policies with particular reference to India, the Nobel Laureate said the central banks should continue to focus on controlling inflation apart from encouraging FDI through policy intervention. At the same time central banks also need to exercise adequate oversight of the banking system as has been the case in India, he felt. Another area that India needed to address is changing labour market regulations, he added.
Earlier, welcoming the gathering Rajendra Srivastava, Dean ISB and Novartis Professor of Marketing Strategy and Innovation, said research and thought leadership mattered the most for any educational institution and ISB put immense premium on both. “While India is talking about Gyan now, ISB had some 15 years back put faith in its own gyan network of global faculty which has benefited immensely”, he said referring to the unique faculty engagement model at ISB. Not surprisingly we are the only Indian business education institution to figure in several global research rankings today, he added.
In fact, ISB is the only Indian academic institution across all disciplines to be ranked in the top 100 worldwide for the quality of its research. As part of this vision of furthering research in economics and management, the school invited Professor Lars Hansen to visit ISB.
About ISB
The Indian School of Business (ISB) is a global Business school offering world-class management education across its two campuses – Hyderabad and Mohali. The School has grown at a rapid pace since its inception and already has several notable accomplishments to its credit – it is the youngest school ever to consistently rank among the top Global MBA programmes, the first institution in South Asia to receive the prestigious AACSB accreditation, one of the largest providers of Executive Education in Asia, and the most research productive Indian management institution. A vibrant pool of research-oriented resident faculty, strong academic associations with leading global B-schools and the backing of an influential Board, have helped the ISB fast emerge as a premier global Business school in the emerging markets. For more details visit www.isb.edu.
C Chitti Pantulu
Director, Marketing and Communications
Indian School of Business
Email: chitti_pantulu@isb.edu
http://www.isb.edu
