Experience Stern | News & Events

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.

Excerpt from The Washington Post -- "New York University’s Langone part-time MBA program in the Stern School of Business also attracts a diverse array of students, according to Alison Goggin, executive director of MBA admissions. She mentioned a student who came from the beauty industry and now works for Google. A professional dancer recently applied as well. Another example was a doctor who wants to run his or her own practice or become a hospital administrator. 'You don’t have to have taken business classes or quantitative classes or come from a quantitative job to be admissible for the program,' she said."

Excerpt from The New Yorker -- "Ultimately, the mob myth depends on psychological distance, a term coined by the New York University psychologist Yaacov Trope to describe the phenomenon of mental distancing that takes place when we separate ourselves from events, people, emotions, or concepts. In some cases, that distance comes naturally. As painful events recede into the past, our perceptions soften; when we physically remove ourselves from emotionally disturbing situations, our emotions cool. In other cases, we need to deliberately cultivate distance—to 'gain perspective.' Trope likens it to the old cliché of missing the forest for the trees: you can wander around in the trees forever or, through training or external intervention, realize that you need to step back to see the full vista."

Excerpt from Reuters -- "'I wouldn't be surprised if GrabTaxi and Ola were also part of this partnership to bring India and South East Asia into the mix,' said Aswath Damodaran, an industry analyst and professor of finance at New York University's Stern School of Business."

Excerpt from Bloomberg -- "It’s unlikely that La’Zooz will displace such established companies as Uber and Gett because its decentralized nature and virtually nonexistent marketing budget could make it seem unreliable, said Arun Sundararajan, a business professor at New York University whose recent research has focused on the sharing economy. 'There are limits to how far a completely decentralized system like this could go,' he said. 'People will still pay for better logistics, a more trusted system—those are still things that are better done by a centralized platform.'"

Excerpt from Commercial Observer -- "'The CMBS market is very hot. I’m not sure why now would be the right time to' securitize leases, said Stijn Van Nieuwerburgh, director of the Stern Center for Real Estate Finance Research at New York University. Mr. Van Nieuwerburgh said that while securitizing commercial leases is theoretically possible, he fails to see the 'business logic' behind it and questions the appetite for these exotic investments."

Hundreds of aspiring entrepreneurs from NYU’s student, alumni and faculty communities gathered in Paulson Auditorium to hear about this year’s Entrepreneurs Challenge.

Excerpt from The Washington Post -- "The new labels will also include updated serving sizes to better reflect how much people typically consume. But this change may create a troubling unintended consequence: It could actually increase how much food people eat."

Excerpt from US News -- "'It's a complex global economic situation,' Nouriel Roubini, a professor at New York University's Stern School of Business and chairman of consultancy firm Roubini Global Economics, said earlier this month while attending an international economic conference in Italy. 'Certainly, China is slowing down. Emerging markets are slowing down. This has led to global financial market volatility – a tightening of financial conditions.'"

Excerpt from Institutional Investor -- "As the market continues to grow, nonbank originators have the potential to collectively create systemic risk. 'The biggest problem is that they are not banks, and they aren’t as heavily regulated, and our usual defenses of bank regulations and supervision and consumer protection aren’t as strong for those types of institutions,' says Van Nieuwerburgh."

Excerpt from Bloomberg -- "The debate showed that Mr. Tsipras believes that he was successful in the negotiation with the EU, despite the resulting capital controls, reversal of growth to a significant recession in 2015, and severe losses of the public’s money invested in Greek banks,' said Nicholas Economides, a professor of economics at Stern School of Business, in New York. 'Neither candidate committed on specific ways to adjust or modify the agreement and reduce its severity since it was signed at the worst possible point in time for Greece.'"

Excerpt from CCTV -- "It's important to note this is a very long-term enterprise for China. They started SOE reforms in the 1990s, shed something like 25 million jobs. So this is not something for 2015, but something we'll see moving forward. The government's target is for 2020. What they can do now is start to put discipline on managers, and that's why they're trying to increase the amount of shares in Chinese SOEs that are publicly traded. They think they can use that as a tool to... influence managers to focus on profitability and to be more efficient with their asset use... Everything they do on that side is going to be very handy for the Chinese economy."
 

Excerpt from BusinessBecause -- "'Companies like MasterCard are competing for talent with other companies in the traditional tech space such as Facebook, Google, LinkedIn, Amazon, and Microsoft,' says Roxanne Hori, associate dean of corporate relations at NYU Stern School of Business."

Excerpt from Bloomberg -- "Edward Altman, the New York University professor who developed the Z-Score method for predicting bankruptcies, says defaults will breach the historical high next year and the Fed is the 'wild card' that has the power to determine how quickly the current credit cycle ends. 'We’re somewhere in the eighth inning of a nine inning game, but the score is tied so there’s a chance for extra innings,' Altman told a group of investors and analysts at an event hosted by the New York Society of Security Analysts last week."

Excerpt from TIME -- "Unfortunately for Turnbull, Australia’s slowdown is not the result of mismanagement at home: It’s a problem made in China. The two countries signed a free trade agreement just three months ago, though Australia’s parliament has not yet ratified the deal. But the Chinese economy—and its demand for Australian iron ore and other commodities—now appears to be slowing faster than expected."

Excerpt from MarketWatch -- "Schoenholtz said he thinks the Fed will stand pat and try to reinforce the message that rate hikes could occur later this year. When the Fed hikes rates, it seeks to tighten financial conditions, he noted."

Excerpt from Hot Topics -- "As the people running formal entrepreneurship education globally, here are the top 100 professors of entrepreneurship cultivating the leaders of tomorrow."

Excerpt from TheStreet.com -- "'In order to invest wisely in the stock market as opposed to gambling, you need to base your investment decisions on information,' Bartov said. 'Even tweets by individuals who may not have any special knowledge or advantage may be useful.'"