Shadow Banking - The Money View

Author: 

Presentation slides from a meeting with the Young Scholars Initiative on 8/29/2014.

Judy Tsui Joins Institute as Special Advisor in China

The Institute for New Economic Thinking is proud to announce that Dr. Judy Tsui is joining the organization as a Senior Advisor in China.

The Institute, which has held conferences in Hong Kong and Tsinghua, China, is in the process of building a strong presence in Asia. Dr. Tsui will play a key role developing these programs and spreading the Institute’s message about the need for new ideas to replace outmoded ways of thinking about the economy. Read more

Katharina Pistor: Creating A Legal Foundation For Finance

We have an increasingly complex financial system and a correspondingly complex system of regulation to go with it. Constructing a proper regulatory framework not only entails an understanding of economics and finance, but also law, since much of the regulation is enacted via legislation.  
 
So how does the law interact with finance?  
 
To answer that question, Katharina Pistor, a grantee of the Institute for New Economic Thinking, professor at Columbia University Law School, and the director of Columbia’s Center on Global Legal Transformation, is developing a Legal Theory of Finance that makes big strides in this area. 
 

James Heckman: Early Interventions Lead To Higher IQs

The Jesuits used to argue that if they could get someone in their church by age five, they’d have them hooked for life.  
 
Nobel Laureate James Heckman doesn’t go quite so far in his ideas for early childhood education, but he does suggest that the years between birth to preschool are crucial in helping to boost IQ scores, enhancing overall educational standards, and therefore improving the economic future of the less advantaged amongst us.
 

FT Scholars at the Institute's Human After All Conference

In April 2014, the Financial Times supported the Young Scholars Initiative by sponsoring scholarships for seven students from around the world to attend the Institute's Human After All conference in Toronto. With more than 600 submissions, interest was overwhelming. Read more

Amir Herzberg: Cyber Security & Centralized Data, What Could Go Wrong?

A global watchdog has sounded the alarm about the growing danger of cyber attacks, on financial markets, warning that firms and regulators around the world need to address the “uneven” response to the threat of online assaults.  And that’s just the latest in a series of concerns expressed in our brave new world of global internet connectivity.  Read more

Curriculum Reform Can End Our Dogmatic Economics (Part 2)

How can we transform economics and move it away from its current state of unproductive dogmatic thinking?

One key way would be in reforming the way economics is taught to students around the world.

In a recent post I argued that in the discipline of economics rational debates of ideas have been replaced by dogma, to the detriment of society. A dogma is a set of principles that are laid down by an overarching authority and are seen as incontrovertibly true. That is what economics has become. Read more

Alex Salmond Pound-Foolish on Scottish Independent Currency

Alex Salmond, leader of Scotland's independence party and the nation’s First Minister, continues to dig his heels over the question of what currency an independent Scotland would use.  Following a debate in Scotland last week in which he was consistently challenged on the point, Salmond continued to insist that there was "no Plan B," and that nothing could stop a newly independent Scotland from continuing its use of the pound. Read more

Edward Kane: Beyond Dodd-Frank

For federal regulators, the Dodd-Frank Act (DFA) of 2010 resembles an earthquake so massive that its aftershocks threaten to go on forever. The overarching purpose of this legislation is to end the perception that very large financial organizations can and do make themselves economically, politically, and administratively so difficult to fail and unwind that their liabilities implicitly enjoy near perfect government guarantees.