Experience Stern | News & Events

Excerpt from The New York Times -- "The global financial crisis destroyed reputations as effectively as it destroyed wealth. Alan Greenspan, Robert E. Rubin, Sanford I. Weill, Richard S. Fuld Jr., James E. Cayne — the list of the humbled is almost endless, while the number of heroes is minuscule. One man, however, bucked the trend and almost alone emerged from the crisis even more revered and admired than he had been already. And now, with the arrival of 'Volcker: The Triumph of Persistence,' Paul A. Volcker has finally been awarded a meticulous historical account of exactly how he reached his exalted position."

Excerpt from R&D Magazine -- "They calculated that 10 extra installations in a zip code increase the probability of an adoption by 7.8%. If there is a 10% increase in the total number of people with solar panels in a zip code—the 'installed base'—there will be a 54% increase in the adoption of solar panels. 'These results provide clear evidence of a statistically and economically significant effect,' says Bryan Bollinger, the other co-author and assistant professor of marketing at New York University Stern School of Business."

Excerpt from Quartz -- "A significant portion of China’s estimated $1 to 2 trillion of foreign investment will likely enter the US and other developed nations in the next decade. Now is the moment to think seriously about creating a multilateral framework for foreign direct investment."

Excerpt from Financial News -- "Evidently O’Neill, a former Marine and respected career banker who successfully turned around a distressed Bank of Hawaii, had become impatient after serving on the Citigroup board for three years and was ready to force some real changes. His election as chairman of the board, replacing Richard Parsons, last April finally signified the end of the Sandy Weill era at Citigroup."

Excerpt from Reuters -- "Roy Smith, a professor at New York University Leonard N. Stern School of Business, said the existing securities and commodities laws provide legal standards for prosecuting executives who provide false and misleading information. The challenge is showing the executive’s intent, he said."

Excerpt from CBS News -- "I felt a responsibility to my students to explain who Paul Volcker was and why every central banker since is in his debt."

Excerpt from The New York Times -- "In short, the economist’s cost-benefit approach — itself long an important arrow in the moral philosopher’s quiver — has much to say about the effects of rising inequality. We need not reach agreement on all philosophical principles of fairness to recognize that it has imposed considerable harm across the income scale without generating significant offsetting benefits."

Excerpt from Project Syndicate -- "The major emerging economies were the world’s main growth engines following the eruption of the financial crisis in 2008, and, to some extent, they still are. But their resilience has always been a function of their ability to generate enough incremental aggregate demand to support their growth, without having to make up for a large loss of demand in developed countries. A combination of negligible (or even negative) growth in Europe and a significant growth slowdown in the United States has now created that loss, undermining emerging economies’ exports."

Excerpt from The Huffington Post -- "First, flaws in the design and implementation of the EMU have made the crisis worse. Second, the decentralized decision-making process of the EU, with political power concentrated in countries rather than Europe, makes effective crisis management nearly impossible."

Excerpt from Project Syndicate -- "The United States Federal Reserve’s decision to undertake a third round of quantitative easing, or QE3, has raised three important questions. Will QE3 jump-start America’s anemic economic growth? Will it lead to a persistent increase in risky assets, especially in US and other global equity markets? Finally, will its effects on GDP growth and equity markets be similar or different?"

Excerpt from The Huffington Post -- Translated from Italian using Google Translate: "In the period 1990-2009, gross domestic product per capita Italian (real, that is, correcting for inflation) grew at an average of 0.6 percent per year. In other words, in less than twenty years, GDP per capita grew by only 11% (Bank of Italy)."

Excerpt from ABC News -- “There used to be liberal Republicans and conservative Democrats; those are largely gone,” Haidt said. ”So now we’re not like two sports teams competing, we are like something from ‘Lord of the Rings.’ ‘We’ are the perfectly good people and ‘they’ are the forces of darkness. And that’s unfortunate, it’s hard to have a democracy without compromise, and it’s very hard to compromise when the people think the other side is evil.”

Excerpt from NerdWallet -- "I think that some classes should be made mandatory in high school — high school rather than college, because it’s the least educated who need those classes the most. Finance is a somewhat novel and abstract field, and it should be learned. Some basic rules of thumb are pretty simple to learn, but they will go a long way towards avoiding catastrophic finances down the road."

Excerpt from Psychology Today -- "One possibility is that by completing several small tasks, I give myself a sense of competence that I can do what I set out to do, or what psychologist Albert Bandura has termed “self-efficacy.” Another possibility, however, is that trying to pay attention to a number of smaller sub-tasks makes it harder for me to maintain my focus on the big picture (think: 'Well, I just finished these three little things, so I may as well as check out what’s new and exciting on Facebook for three hours before writing this blog post')."

Excerpt from CNBC -- "It's the speed of real time data being generated that makes it so appealing to businesses...Macy's used it to determine how many customers they will get at Thanksgiving, and can plan on what to sell in real time. And Sears personalized promotions for customers in a just a week when it used to take them eight. There's so much that can be done with it."

Excerpt from Ignites (a Financial Times service) -- "Creating a leadership development program internally, rather than outsourcing that entire function, is important for firms because it sends a signal to all employees, says R. Kabaliswaran, a clinical professor of management at New York University who also teaches MBA courses on leadership, power, politics and strategic design at the NYU Stern School of Business."

Excerpt from TIME -- "Both candidates are essentially saying, Vote for me because the other side destroyed a fair America in which hard work paid off. Vote for me because I’ll restore fairness and the American Dream. But if we dig a little deeper into what the two sides mean by fairness, the similarities melt away."

Excerpt from Financial News -- "The last time economic issues took centre stage with such significant importance was 20 years ago when Ross Perot, as an independent, gathered 19% of the popular vote in support of his deficit reduction agenda."

Excerpt from The New York Times -- "As the cost of health care continues to be a battering ram in the 2012 presidential campaign, Professor Baumol’s seemingly academic treatise contains a couple of zingers that one can imagine President Obama incorporating into his stump speech. The future is bright, this book argues, as long as policy makers don’t do things that are sure to bring on the storm clouds."

Excerpt from Outsource Magazine -- "In today’s global services outsourcing arena, increasing numbers of companies adopt “multisourcing”; that is, they select and combine information technology (IT) and business services from multiple providers. The decrease in deal size, well-documented by the Global TPI Index, is one indicator that buyers are dividing their business among multiple providers."

Excerpt from HuffPost Live -- "My point of view is that especially with "Golden Dawn" in Greece right now, this is a reaction by significant parts of the population to the fact that the police doesn't do its job right, there is much more violence in Greece than you expect and the middle class does not want to tolerate. There has been widespread distribution of drugs by immigrants and widespread prostitution by immigrants in middle class neighborhoods and a lot of people are very upset and that has given rise, to some extent, to the Golden Dawn."

Excerpt from Forbes -- "...health care is just going to carry on getting more expensive. That’s the very gloomy headline lesson from William Baumol’s new book. Given that it is Baumol’s Cost Disease, one of Professor Baumol’s contributions to economic theory, that tells us that health care is just going to keep getting more expensive he’s probably a very good guy for us to be listening to on the point."

Excerpt from The Saturday Evening Post -- "The problem is not just limited to politicians. Technology and changing residential patterns have allowed each of us to isolate ourselves within cocoons of like-minded individuals. In 1976, only 27 percent of Americans lived in 'landslide counties'—counties that voted either Democratic or Republican by a margin of 20 percent or more. But the number has risen steadily; in 2008, 48 percent of Americans lived in a landslide county. Our counties and towns are becoming increasingly segregated into 'lifestyle enclaves,' in which ways of voting, eating, working, and worshipping are increasingly aligned."

Excerpt from Huffington Post Italy -- (Translated from Italian with Google Translate) "What are the reasons for this failure? In this short post I argue that one of the main reasons there is the adoption of the so-called consultation, which is the mechanism by which the government discusses the merits of a reform with representatives of the social partners, seeking a staunchly unanimous assent of the same."

Excerpt from Financial Times -- "Paul Volcker was chairman of the Fed from 1979 to 1987. His foe was inflation – the opposite of the high unemployment fought by Ben Bernanke today. But the pressures on the two men from purist academics and interfering politicians are eerily similar. That makes this fine new biography especially timely. William Silber’s theme is the tension between monetary and fiscal policy, between the ascetic central bankers and the wilful politicians, and how one must check the other."