Experience Stern | News & Events

Excerpt from TIME -- "In a talk earlier this year, Scott Galloway of research firm L2 explained why this is such a big deal for Nike. 'There is a tectonic shift taking place in apparel, the second-largest consumer category in the world. Essentially, people are moving from denim to sweatpants,' he said. 'It sounds minor but it’s a huge trend in a gigantic industry.'"

Excerpt from Forbes -- "'When a company is trying to reposition itself, for example from being a value brand to a more prestigious brand, this change must also get reflected in its packaging from being more basic to being fancier,' says NYU’s Raghubir. 'A great example is when Tropicana went the other route, of simplifying its package design, and there was a consumer backlash. Consumers do infer quality from the package.'"

Excerpt from Financial Times -- "'It isn’t like there were all these hugely profitable lending opportunities out there in the economy that banks didn’t take advantage of … the statement by banks that the reason they were not lending more is because there were no additional profitable lending opportunities appears to hold true, at least in the credit card market. We can see that in the data.'"

Dan Schulman, CEO and President of PayPal, joined MBA students and alumni for a 2015-2016 Speaker Series event, presented by U.S. Trust.

Excerpt from The Huffington Post -- "There is an increasing consensus on his specific point about ending the carried interest loophole...[Paul] Romer noted that this mood strikes American politics periodically, as it did under President Ronald Reagan, when Congress passed the Tax Reform Act of 1986. 'It could be that what’s emerging is a consensus from various parts of the political spectrum ... that the complexity and special treatment and special favors have just gotten to be too much,' he said."

Excerpt from The Economist -- "After credit dried up in America in 2008, the Federal Reserve scrabbled for ways to perk up spending. One trick it tried was to offer banks concessionary funding, hoping they would lend more to consumers and so induce Americans to open their wallets. An NBER working paper published this week by Sumit Agarwal of the National University of Singapore, Souphala Chomsisengphet of the Treasury Department, Neale Mahoney of the University of Chicago and Johannes Stroebel of New York University looks at data from hundreds of millions of credit cards from 2008 to 2014 to work out why the results were so disappointing."

Excerpt from Financial Times -- "The anonymity of cash helps to free people from their governments and some criminality is a price worth paying for liberty, as professors Stephen Cecchetti and Kermit Schoenholtz observe. It is better if the government creates trusted, anonymous notes and coins rather than some private agent."

Excerpt from The Washington Post -- "'This has tarnished a huge, iconic company, so it’s going to be a long and slow process to restore this company,' said Karen Brenner, a business professor who is executive director of law and business initiatives at New York University. 'The damage is only beginning to unfold.'"

Excerpt from BusinessBecause -- "Professor Thomaï Serdari, strategist in luxury marketing and branding at NYU Stern School of Business, said that there will be both new career and business opportunities as a result of luxury’s digital drive. 'We are experiencing a shift,' she said."

Excerpt from Financial Times -- "Though much of the hype is centered around bitcoin, Prof Yermack says the blockchain could have huge applications for record-keeping in a range of industries, such as the media or arts as well as manufacturing and finance. 'It looks like the blockchain is a replacement for double entry bookkeeping.'... For Mr Lee, this kind of open enrolment programme is a way of differentiating the school from competing institutions through cutting-edge thinking. 'We think about the alignment of market interest and faculty research. We view our short courses as an innovation lab for the school.'"

Excerpt from Stanford Political Journal -- "We have to push governments to behave better and to protect their people. On a parallel track, companies need to move away from a policing model where they conduct random spot-check audits of some of their factories.They do this as a kind of risk mitigation and sometimes as a public relations gesture to say ‘we’re doing something,’ and move to a more holistic look at how do we actually get at the problem."

Excerpt from Forbes -- "[Ghemawat's] message was that despite the fall in the Yuan, the Chinese stock market, and the labor rates in China, don’t count China out in the shifting power of world trade. In his presentation he contrasted world trade in 2013 and his forecast for world trade in 2040."

Excerpt from Politico -- "Households with the lowest FICO scores had the highest willingness to borrow. Despite lower-cost capital, banks were reluctant to lend to these potential borrowers. The authors estimate that a one percentage point reduction in the costs of funds for banks raises optimal credit limits by only $127 for consumers with low FICO scores. … A bank’s propensity to lend is negatively correlated with a household’s propensity to borrow (i.e., the more likely a household is to borrow, the less likely a bank is to grant additional credit)."

Excerpt from Investor Wired -- "The idea of a volatility index, and financial instruments based on such an index, was first developed and described by Prof. Menachem Brenner and Prof. Dan Galai in 1986. Professors Brenner and Galai published their research in the academic article 'New Financial Instruments for Hedging Changes in Volatility,' which appeared in the July/August 1989 issue of Financial Analysts Journal."

Excerpt from China Daily -- "'Didi Kuaidi has 80 percent of the market to dwarf Uber in China and remember, it's the biggest ride-sharing market in the world,' said Sundararajan."

Excerpt from CNN -- "[Tsipras is] attempting to make a government with one coalition partner, and extreme, right-wing party called Independent Greeks... Its main platform is to be against the deal with Europe, so it's a kind of paradox that Mr. Tsipras is making a government with a sworn enemy of that deal. And I think he would have been much stronger in negotiating with the Europeans if he had made a much more broad coalition of the pro-European forces into his government."

Excerpt from Bloomberg -- "I think people have been tired of the whole situation... Day after day, they are hearing bad news, and they had put all their hopes on Tsipras in January and he made a huge U-turn. So people are now disappointed, but the absence of a very good political alternative from the center right made Tsipras win."
 

In a new study, Professor Johannes Stroebel of the NYU Stern School of Business, Sumit Agarwal of the National University of Singapore, Souphala Chomsisengphet of the Office of the Comptroller of Currency and Neale Mahoney of the University of Chicago Booth School of Business find that government policies aimed at stimulating the economy by reducing banks’ cost of funds, so that they will extend more credit to households, are relatively ineffective.

On September 21, the NYU Stern Center for Global Economy and Business hosted a panel discussion on "The Future of European Monetary Union," featuring Professors Alberto Bisin, Luis Cabral, Thomas Philippon and Stijn Van Nieuwerburgh.

Excerpt from Chicago Tribune -- "'Look at the symbolism,' Alter said, 'or how it sounds. Does it sound mellifluous or otherwise really appealing?' In other words, does it sound like the thing it represents?"

Excerpt from PayScale.com -- "Two psychologists, David Dunning and Justin Kruger have worked on cluelessness, finding among other things that incompetence is bliss, as well as numerous highly relevant business insights."

Excerpt from PBS NewsHour -- "No, capitalism is not the culprit [for poverty]. Capitalism, when it’s allowed to do its work, some of us would say work its magic, it has a tremendous ability to raise living levels for the people who live under that system. That doesn’t mean it’s perfect, but I think to sort of say that capitalism is the problem, let’s get rid of it, as the pope may be hinting, is to throw the baby out with the bathwater."

Excerpt from Bloomberg -- "The plaintiffs built their case against the 22 primary dealers who serve as the backbone of Treasury trading -- including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley -- using data from Rosa Abrantes-Metz, an adjunct associate professor at New York University who has provided expert testimony in rigging cases."

Excerpt from MarketWatch -- "Kim Schoenholtz, who teaches economics at New York University, will look for clues from the Fed chief on what data will influence the way the U.S. central bank behaves. Data dependency has been the mantra for the Fed this year, he notes. In the wake of the financial market turmoil, data may start to shift in significant ways and how the Fed will view developments is key, he said. Schoenholtz thinks the Fed will stay on the sidelines this week."

While taking a course entitled “Global Economic Trends and Policy Challenges,” with Professor Gian Luca Clementi, MBA students Ian Greenhaus and Noam Lefkovitz developed a plan to tackle two defining issues of the 21st century in the United States – the revitalization of economically stalled cities and immigration reform.