Marshall Auerback

Director of Institutional Partnerships
Institute for New Economic Thinking

Auerback has over 20 years of experience in the investment management business. He served as a director and global portfolio strategist for the Canada-based fund management group Pinetree Capital. He also was head of economic research for Madison Street Partners, a Denver-based investment management group, and he worked as an economic consultant to PIMCO, the world’s largest bond fund management group.  In addition, Auerback is a Research Associate at the Levy Economics Institute of Bard College and a Research Fellow for the Economists for Peace and Security. (http://www.epsusa.org)

Previously, Auerback managed the Prudent Global Fixed Income Fund for David W. Tice & Associates and assisted with the management of the Prudent Bear Fund. He also worked as an international economics strategist for Veneroso Associates, which provided macroeconomic strategy to a number of leading institutional investors. Prior to that, Auerback ran an emerging markets fund for Tiedemann Investment Group in New York. He began his finance career as an investment manager at GT Management, focusing on the markets of Japan, Australia, and the Pacific Rim, while based in Hong Kong and then Tokyo.

Auerback graduated magna cum laude from Queen’s University in Canada and received a post-graduate masters degree from Oxford University.  .

My Content

Today is the day. Today the world will learn the definitive answer as to whether Scotland will remain a part of the United Kingdom or launch the first step toward independence. The most recent polls seem to indicate a narrow margin of victory for the No side, but it's too close to call, especially given the huge turnout and the size of the youth vote (16 is the voting age minimum for the referendum.)
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.
A showdown has taken place within Italy’s governing coalition. Events are still unfolding, but the center-left Democratic leadership has given an explicit thumbs-down to the current government, and former Prime Minister Enrico Letta has resigned.   Matteo Renzi, the leader of Italy’s Democrats, says that he hopes to have his new government ready this weekend after nearly two days of talks with all of Italy’s political parties, and expects to form a coalition largely based on the same left-right alliance that previously supported Letta.
Bubbles have become a major focus of discussion in today's financial markets. But very few people actually define what they mean when describing this financial phenomenon.   In a recent Harvard Business Review blog post, Markus Brunnermeier, an economist at Princeton University and a member of the Institute for New Economic Thinking’s Advisory Board, had a go at it. Brunnermeier defines the leading characteristics of bubbles thusly: "Bubbles are typically associated with dramatic asset price increases followed by a collapse. Bubbles arise if the price exceeds the asset’s fundamental value."
The global financial crisis of 2008 created the worst recession in the developed world since the Great Depression. Governments had to respond decisively on a large scale to contain the destructive impact of a massive debt deflation. Still, large financial institutions such as American International Group, Bear Stearns, Lehman Brothers, Countrywide Financial, Washington Mutual, Wachovia, Northern Rock, and Landsbanki collapsed. Thousands of small-to-medium financial institutions failed or needed to be rescued. Millions of households lost their retirement savings, jobs, houses, and communities. And numerous non-financial businesses closed.

My Video Content

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For the most part, economic policy makers continue to make the case that achieving growth should be the over-arching objective of the global economy. In this context, environmentalism often is seen as a cost, a trade-off that inhibits this primary objective. 

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As we approach the impending independence referendum in Scotland, it is noteworthy that we no longer hear economic comparisons between the so-called “Celtic Lion” and its neighbor to the West, the once “Celtic Tiger” of Ireland.  
 
Ireland was the first of the EMU nations to embrace the austerity mantra, the first of the governments to openly engage in economic policy malpractice by abandoning their responsibilities to advance public purpose. As Stephen Kinsella of the University of Limerick notes in this interview, for all the hope of the “mangy cat” again becoming the “Celtic Tiger,” Ireland remains in pretty sorry condition. 
 
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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.
 
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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.