Experience Stern | News & Events

Thirty years ago China seemed hopelessly mired in poverty, Mexico had triggered the Third World Debt Crisis, and Brazil suffered under hyperinflation. But in recent decades, these and other developing countries have turned themselves around, while First World nations, battered by economic and fiscal crises, struggle to stay afloat. With the global economy teetering on the brink, America’s prosperity now depends on our ability to learn from these prior foreign struggles—and successes—with economic reform. The stakes are higher than ever and "Turnaround: Third World Lessons for First World Growth," by Peter Blair Henry, reveals the three things we need for a more prosperous future.

In a new research paper, Professor Marti Subrahmanyam at NYU Stern School of Business and Professors Alexander Eisl and Rainer Jankowitsch at Vienna University of Economics and Business find that an alternative rate-setting process that uses the median of the LIBOR window could significantly reduce the effect of LIBOR manipulation.

Excerpt from Bloomberg -- “'Supervision by itself is not enough because it is within the regulatory perimeter' in which the Fed focuses primarily on banks, said Viral Acharya, a finance professor at New York University’s Stern School of Business who has served as an adviser to several Fed district banks."

Excerpt from The New York Times -- "'It’s all about association. If Samsung wants to be perceived as hip, cool and cutting edge, it has to have a partner with the same qualities,' Hal Hershfield, assistant professor of marketing at New York University’s Stern School of Business, said of Samsung’s alliance with Mr. Wang. 'Like Apple, which has a certain image, both Microsoft — with indie bands — and Samsung with fashion are saying that we can play this game, too,' Mr. Hershfield said."

Excerpt from CNBC -- "'This is a company that's being priced for no growth and compressed margins already, so I don't understand why the market would react the way it does to news that is, in a sense, is not being built into the stock price,' he said."

Excerpt from CNBC -- "The 'easy money' policy of the Federal Reserve will continue for 'as far as the eye can see' and that's going to continue to be good for the U.S. stock market, noted economist Nouriel Roubini told CNBC on Tuesday."

On February 4, Kim Schoenholtz, Professor of Management Practice in the Stern Economics Department and Director of the Center for Global Economy and Business, moderated a discussion among three leading economists from Wall Street firms. Michael Feroli, JP Morgan; Paul Sheard, Standard & Poor's; and Nathan Sheets, Citigroup.

Excerpt from LiveMint -- "While India has not experienced a crisis recently, the ownership structure of government debt seems problematic from the view of financial and economic stability. More than 80% of government debt in India is held by banks and state-owned insurance companies. This ownership structure, coupled with substantial public ownership of banks and financial institutions, implies a strong nexus between banks and governments."

Excerpt from Bloomberg BusinessWeek -- "The World Bank estimates that over the next five to 10 years, China will export something like 85 to 100 million jobs to earlier-stage developing countries, and that they will be replaced by higher-value-added activities. This is the opportunity of the century for the earlier-stage developing countries, because for a long time they’ve been saying, rightly or wrongly, that they can’t compete with China. Well, China is moving on just like Korea did before, and now is their chance."

NYU Stern's Urbanization Project will host industry professionals and faculty that will participate in the Brown Bag Discussion series.

Excerpt from MSNBC -- "I think the main thing for the vehicle graphics company and anyone considering this is are you ready to be a franchise? Meaning, have you built a brand that other people would be interested in?"

Excerpt from Marketplace -- "That annoyance is why Ticketmaster says it’s switching to shorter, easier captchas. Instead of text, Ticketmaster customers will have to solve image puzzles. You might be presented with a picture of a car, a flower and a dog and be asked to identify the animal. 'This is something that is reasonably pleasant for the human being to go through but really difficult for computers to do,' says Arun Sundarajan, a professor of digital strategy at NYU’s Stern School of Business."

The NASDAQ/OMX Derivatives Research Project Research Day, hosted by the NYU Stern Salomon Center, is an opportunity to learn about some of the most interesting projects that are currently under way among our active Finance research faculty. Along with presentations of research work in progress, this event will feature a panel discussion on the current state of the world economy and financial system.

Excerpt from The New York Times -- "There are other online valuation calculators, including BizEquity and uValue, an iPhone app developed by Aswath Damodaran, a valuations expert at the Stern School of Business at New York University."

Excerpt from Bloomberg -- “'Extend and pretend -- both in the leveraged loan market and the high yield bond market -- is bailing out just about anybody,'” Edward Altman, a finance professor at New York University’s Stern School of Business, who created the Z-Score measure for bankruptcy risk, told TMA."

Excerpt from Bloomberg -- "No surprises. The stock market isn't surprised either because it, in fact, has risen. We're at the highest level in years. It has risen in anticipation of no change, continued expansion."

Excerpt from Marketplace -- "Anindya Ghose, who teaches social media and digital marketing at NYU’s Stern School of Business, says there are two pluses to food pictures. 'Part of it is that it’s more information from a source that I’m more likely to trust: another user like me,' he says."

Excerpt from Bloomberg -- "Apple Inc. has a 90 percent chance of being undervalued after a four-month drop in shares of the iPhone and iPad maker, according to Aswath Damodaran, a finance professor at New York University."

Excerpt from The New York Times -- "Tom Meyvis, an associate professor of marketing at the Stern School of Business at New York University, said he doubted that 'parents would find the ads credible' because 'kids are not so excited about eating steamed vegetables.'"

Excerpt from USA TODAY -- "'We have probably hit bottom and we've probably come off the bottom a little,' says Lawrence White, economist at New York University Leonard N. Stern School of Business."

Excerpt from Entrepreneur.com -- "'Capitalism is creative destruction,' says Sylla. 'Old models get outmoded, and new models come in and take over.'"

Excerpt from CNN -- "How can a company fall from grace so quickly, especially when it still possesses enviable profit margins and perhaps the most valuable franchise in the world? The answer lies in recognizing that a market price is set by demand and supply, which, in turn, are driven not only by underlying value but also by other factors including hope, hype and momentum."

Excerpt from The Huffington Post -- "Any bank that is too big to fail and to prosecute is a clear and present danger that should be promptly shrunk to the point that it can no longer hold the global economy hostage in order to extort immunity from the criminal laws for the controlling officers who became wealthy by being what Akerlof and Romer aptly described as 'looters.'"

Excerpt from US News -- "'People tend to overestimate how much events and experiences will affect their happiness in the long run,' Meyvis said. 'In the long term, it doesn't matter. You go back to your baseline level of happiness.'"

Excerpt from The Huffington Post -- "In December, the U.S. and the UK took a significant step in that direction, announcing a common strategy for resolving insolvent cross-border financial giants, known as global systemically important financial intermediaries (G-SIFIs). In spite of this progress and the Dodd-Frank law notwithstanding, the specter of 'too big to fail' still haunts the financial landscape."