Interest Rates and Inflation: What’s Next for the Federal Reserve?
Professor Pierre Yared describes why the U.S. economy is unlikely to see an economic downturn comparable with the 1970s.
Professor Pierre Yared describes why the U.S. economy is unlikely to see an economic downturn comparable with the 1970s.
Tano Santos, the Robert Heilbrunn Professor of Asset Management and Finance and Director of Columbia Business School’s Heilbrunn Center for Graham and Dodd Investing, discusses the school’s approach to value investing and finance.
This paper studies systemic risk in the interbank market. We first establish that in the German interbank lending market, a few large banks intermediate funding flows between many smaller periphery banks. We then develop a network model in which banks trade off the costs and benefits of link formation to explain these patterns. The model is structurally estimated using banks' preferences as revealed by the observed network structure before the 2008 financial crisis.
We demonstrate a novel link between relationship-specific investments and risk in a setting where division managers operate under moral hazard and collaborate on joint projects. Specific investments increase efficiency at the margin. This expands the scale of operations and thereby adds to the compensation risk borne by the managers. Accounting for this investment/risk link overturns key findings from prior incomplete contracting studies.
Bank bond portfolios remained deeply underwater in the fourth quarter of 2022, reducing banks' access to liquidity in the first quarter when deposits became far more precious.
Todd Baker is a financial services executive whose career has led him from corporate law to C-suite strategic business leadership roles at several of the largest domestic and international banks and roles as an academic, consultant, writer, speaker and commentator on banking, financial technology, consumer financial access and regulation issues.
Brett House is Professor of Professional Practice in the Economics Division at Columbia Business School. His research and writing are focused on macroeconomics and international finance, with interests in fiscal issues, monetary policy, international trade, financial crises, and debt markets. His work has been published in peer-reviewed journals and international media.
Yiming Ma is an Associate Professor in the Finance Division at Columbia Business School. She received her Ph.D. in Finance from the Stanford Graduate School of Business in 2018 and a B.A. in Economics & Mathematical and Global Affairs from Yale University in 2013.
Pierre Yared is the MUTB Professor of International Business, Senior Vice Dean for Faculty Affairs, and Vice Dean for Executive Education at Columbia Business School. His research, which has been published in leading academic journals, focuses on macroeconomic policy and political economy. He is a research associate of the National Bureau of Economic Research and an associate editor of the American Economic Review. Yared teaches Global Economic Environment, a Core MBA course in macroeconomics for which he received the Dean’s Award for Teaching Excellence.
For 29 years Michael has invested directly at the security level and indirectly as an asset allocator in traditional and alternative asset classes. He is a Managing Director, Head of Hedge Funds and Alternative Alpha, and on the Investment Committee at APG, a world leader in Environmental, Social and Governance Investing. Previously he was the Chief Investment Officer at MOV37 and Protege Partners.
Achilles Venetoulias has 30 years’ experience in taking and managing risk, and in creating and running businesses. He has founded and run two hedge funds, taken proprietary risk for large institutions, supervised the investment process for a European fund of hedge funds, and served on the Board of a fund of hedge funds for an international wealth management firm. He has also founded a fintech company that
Matthew Dell Orfano is a Senior member at Discovery Capital, focusing globally on multiple sectors, thematic trade construction, and special situations, in addition to managing their data efforts. He is responsible for individual positions and the internal thematically driven portfolio, which assimilates bottoms-up analysis and macro thematic from over 55 countries into actionable insights.
Aamir A. Rehman is a Senior Fellow at the Richard Paul Richman Center for Business, Law, and Public Policy at Columbia University. His contributions to the Center focus on investors’ ESG considerations and the public aspects of private investments.
Professor Jian Li joined Columbia Business School in 2021. She graduated with a PhD from the Joint Program of Financial Economics at the University of Chicago. Her research interest lies at the intersection of macroeconomics and finance. She is particularly interested in how financial intermediaries affect the real economy and how different types of financial institutions can contribute to financial instability.
Professor Johannes’s research analyzes the empirical content of fixed-income and derivative securities pricing models. He is particularly interested in developing econometric methods to investigate models with jumps and stochastic volatility. Johannes teaches the elective Capital Markets and Investments.
Professor Nissim earned his PhD in Accounting at the University of California, Berkeley, and joined Columbia Business School in 1997. He was granted tenure in 2005, and full professorship in 2007. He served as the Chair of the Accounting Division during the years 2006–2009 and 2014–2016.
Problem definition: Motivated by ride-hailing platforms such as Uber, Lyft and Didi, we study the problem of matching riders with self-interested drivers over a spatial network.
In the past decades, as traditional luxury goods and conspicuous consumption have become more mainstream and lost some of their signaling value, new alternative signals of status (e.g., vintage, inconspicuous consumption, sustainable luxury) have progressively emerged. This research applies the grounded theory method to establish a novel framework that systematically unifies existing conceptualizations, findings, and observations on alternative signals of status.
There is a consensus that global value chains have aided developing countries' growth. This essay highlights the governance complexities arising from participating in such chains, drawing from lessons we have learned conducting research in the coffee and garment supply chains. Market power of international buyers can lead to inefficiently low wages, prices, quality standards, and poor working conditions. At the same time, some degree of market power might be needed to sustain long-term supply relationships that are beneficial in a world with incomplete contracts.
We examine how managers' political power reallocates resources in the internal capital market. By shifting the focus from financial to firm-specific, non-financial resources that are difficult to evaluate and zero-sum in nature, we revise the prevailing view that managers' political power plays a significant yet contingent role under financial constraint and weak governance. We instead characterize managerial political power as an intrinsic, inescapable determinant of internal competition and resource allocation.
Strategies for coping with businesses that face the declining demand of late life-cycle products are
revisited in light of the enhanced competitive capabilities made possible by access to the World
Wide Web and connectivity to the Internet. Presumably endgame competitors may draw upon a
wider variety of implementation options on both the demand and supply sides when serving the
highly-connected markets reached via Internet access. Results are posited to be mixed since supply-
Modifying attitudes and behaviours related to climate change is difficult. Attempts to offer information, appeal to values and norms or enact policies have shown limited success. Here we examine whether participation in a climate prediction market can shift attitudes by having the market act as a non-partisan adjudicator and by prompting participants to put their ‘money where their mouth is’.
Modifying attitudes and behaviours related to climate change is difficult. Attempts to offer information, appeal to values and norms or enact policies have shown limited success. Here we examine whether participation in a climate prediction market can shift attitudes by having the market act as a non-partisan adjudicator and by prompting participants to put their ‘money where their mouth is’.
We study a regulation in Chile that mandates warning labels on products whose sugar or caloric concentration exceeds certain thresholds.We show that consumers substitute from labeled to unlabeled products—a pattern mostly driven by products that consumers mistakenly believe to be healthy. On the supply side, we find substantial reformulation of products and bunching at the thresholds.