NATIONAL SEMINAR ON ECONOMETRIC APPLICATIONS IN MANAGEMENT

NATIONAL SEMINAR ON ECONOMETRIC APPLICATIONS IN MANAGEMENT

-Dr.Debesh Bhowmik

The Indian econometric Society (TIES) has organized a national seminar at Central University of Rajasthan,Ajmer on Econometric Applications in Management during 20-21 November,2013.The seminar was inaugurated by Prof.K.L.Krishna-former director of Delhi School of Economics after welcoming by Prof R.C.Sharma-Head Department of Management.Honourable VC –Prof.M.M.Salunkhe has given the presidential address.Prof.Subir Gokarn-Former deputy governor of RBI has given address on “Accelerating India’s Longterm growth constraints and policy options”.S.P.Mukherjee-Former Centenary Professor of Calcutta University has given special lecture on “Multivariate data analysis in Econometrics” which was a great educational value to the participants.

In the seminar,  36 papers on econometric applications were presented so far in which 20 papers were included for the published book entitled”Econometric Application in Management” that was edited by Prof.R.C.Sharma and Dr.S.K.Garg.

In the technical session,Joyjit Dhar of Krishnagar Govt.College presented paper on “Market timing abilities of Indian Mutual Fund Managers:An Evaluation”.Gopinathan R.-of Pondicherry University presented paper on “Asymmetric Relationship between stock market and macro economic variables”.Preeti Saluja of Management Department read paper on “Impact of Financial ratios on share price:A fixed effect approach on Indian Public sector banks”.Sajad Ahmed Rathore and M.Ramchandran of Pondicherry university presented paper on “Impact openness on inflationary effects of monetary policy and inflation volatility-evidence for India”.Iti Vyas-St.Ann’s College for women,Hyderabad read her paper on “India in the global economy:An empirical study of financial market integration and efficiency with special reference to current financial and economic crisis”.Akash Krishnan and G.Raghabendra Raju of Saitya Sai Institute,Puttaparthi lectured on”Detecting cartelization in the Indian cement industry:Behavioural and structural methodology”.Aas Mohammad and Bandi Kamaiah  of Hyderabad University read paper on “An analysis of technical efficiency of Indian pharmaceutical industry:A stochastic frontier analysis”.Panchanan Das of Calcutta University presented on”Multi factor productivity growth and capacity utilization in manufacturing industries in India:Estimating stochastic frontier with firm level data”.Anindita Sengupta of Burdwan University read on “Measuring productivity and technical efficiency in automotive industry under economic reform in India:Stochatic frontier analysis with firm level data”.Arabinda Das of APC college,Kolkata presented paper on “Bounded inefficiency in copula-based stochastic frontier model”.

Debesh Bhowmik of International Institute for Development Studies,Kolkata presented paper on “Convergence patterns of growth rates of state industries in India”.

Govinda Srivastava and Vinish Kathuria of IIT,Mumbai presented on “Impact of power sector reform on the performance of the Indian Discoms:A panel data analysis”.Sanjeev Gupta of Central university of HP read paper on “Comparison of ARIMA  and Artificial neutral network for forecasting exchange rate”.G.Jayachandran and N.Sheela Devi read paper on “FDI inflows into USA:A time series analysis on time lag model approaches”.Pooja Joshi and AK Giri of BITS ,Pillani addressed on “Sensitivity of stock market indices to oil prices,exchange rate and economic growth:Evidence from industrial subsectors in india”.Richa Mathur and Sanjaya K.Garg of Central Unversity of Rajasthan orated on “Market capitalization and volatility of stocks:A financial econometric analysis”.S.R.Singh and Archana Sharma of Banasthali University addressed on “Deterministic inventory model for deteriorating items under linear holding cost with partial backlogging”.Pradeep Kumar Keshari of IDBI said on “Firm’s probability to export :role of sunk cost ,productivity and credit constraints in a select group of capital intensive Indian industries”.Nilakanta N.T.,Haripriya Gundimeda, and Vinish Kathuria of IIT,Bombay addressed on “Relationship between FDI,Environment and Economic Growth in india:An Application of ARDL approach”.Mahendra Pal of UGC fellow presented on “Finance-Growth nexus in India:An evidence from cointegration and VECM”.Biswajit Maitra of Surya Sen College,Siliguri read on “Monetary management, income growth and price stability in Malaysia-ARDL approach”.Vijay Singh Shekhawat and Vinish Kathuria of IIT,Mumbai presented on “Resolving global imbalances by forming International Clearing Unions”.B.Anand of Pondicherry University presented paper on “Volatility spillover between oil price and select macroeconomic variables in India”.

In the valedictory session, Prof SP Mukherjee spoke on econometric tools and VC of the University gave to much enthusiasm to delegates , students and staff.Prof.Sharma’s vote of thanks was also memorable.

Retail Payments at Crossroads: Economics, Strategies and Future Policies

 Retail Payments at Crossroads: Economics, Strategies and Future Policies

by Shri G Padmanabhan, Executive Director of the Reserve Bank of India, Paris, 21 October 2013.

I am deeply honored to be here and thank the European Central Bank and Banque de France for inviting me as a member of this important panel. I have been asked to specifically comment on three aspects of the topic we are discussing and let me attempt that in seriatim.

I. How can financial intermediaries and financial inclusion contribute to the economic growth of the country?

1. As Global Payments 20131 report points out we are facing a “two speed world” as far as payments activities are concerned – one in mature economies and the other in emerging or rapidly developing economies. This calls for two different approaches for the two types of economies.

2. Developed economies have already reached a level of market maturity in terms of retail payments and are looking for the next generation of efficiencies in these systems by re-discovering their relevance in the society. However, in the case of emerging markets, retail payments have been on the policy radar as we try and get away from cash based and paper based payments. Hence we continue to `re-dedicate’ on its development rather than `re-discover’ its importance. Our challenge has been to enable such systems to `develop’, `consolidate’ and `converge’ with innovation at each stage.

3. So in India we have continued to focus on both paper based and electronic payment systems. But realizing the rapid scale of innovations and for focus we decided to encourage the formation of a separate organization - a non-profit organization called the NPCI (National Payments Corporation of India) as the umbrella organization for retail payment systems in India. This entity is now spear-heading the innovations in retail payments in India and has introduced several products and payment services such as the inter-operable inter-bank mobile payments with 24 x 7 real-time transfer of funds (IMPS - Immediate Payment Systems), payments based on Aadhaar (Unique national id based on biometrics), a domestic card network – RuPay which is being used for various purposes viz. enhancing financial inclusion, food procurement, farmer credit, etc. Besides, NPCI has also enabled ISO compatible National Automated Clearing House (NACH) systems.

4. It is a well-accepted fact that a well-functioning payment system contributes to monetary and financial stability and ensures economic efficiency. How do you define the term “well-functioning”? In the emerging market context, such a system must ensure users' trust in these payment methods similar to the trust they have in cash transactions. There is always the “fear of unknown”. One bad experience in the beginning can make them rush back to cash usage. This is even a bigger challenge particularly when we are reaching out to the financially excluded to adopt electronic payments.

5. It must be appreciated that financial inclusion has been accorded high priority in policy hierarchy in recent times as the advent of technology has enabled increased reach and delivery of financial products in a cost effective and viable manner. So more appropriately what is being aimed is technology led financial inclusion. Business correspondents play an important role in this effort since the lack of penetration of brick and mortar bank branches could be attributed to financial exclusion. Different countries have adopted different models but in any model business correspondents are important entities in the chain. Further, alternate payment models are the hallmark of the FI efforts across the countries.

6. In this regard, various studies2 have shown that customers who have quick and reliable access to payment points and customers who use alternate non-cash payment methods tend to keep more funds in their accounts for larger periods of time. Therefore, provision of safe, accessible and efficient alternate payment channels assumes critical importance. This is crucial for the banking systems in India when the savings and loan spreads are high. So financial inclusion makes huge commercial sense. In fact, the CGAP report3 also highlights the beneficial impact of financial inclusion through increased deposit and lending to GDP ratios on national income.

7. As I have said earlier, different countries have adopted different models to achieve financial inclusion. For example, Pakistan has put in place a mechanism of person-to-person funds transfer through the banking system using BCs without the need for opening accounts; customer identification being based on national identity as well as mobile number. In India while BCs play an important role, financial inclusion aims not merely at remittances but also aims at savings product, a loan/credit product, remittance product as also insurance product.

Further the basis for a remittance product outside banking systems pre-supposes the existence of a national identity system in the country.

8. A few words about Indian approach to FI. We have always been alive to the need for extending the reach of the financial sector to the under-privileged sections of the society. Financial inclusion for us aims not merely at remittances but also aims at savings product, a loan/credit product, remittance product as also insurance product. Thus, in India we believe that, financial inclusion has the potential to bring in the unbanked masses into the formal banking system, could lead to increased savings, provide timely credit to the unbanked masses and all these positive externalities would lead to economic growth. The efforts to channelize the government benefits and subsidies through direct benefit transfers programs to beneficiaries’ bank accounts directly would not only be helpful in plugging the leaks in distribution but also help in inculcating banking habits.

9. How has India approached FI? We have adopted a structured, planned and an integrated approach towards FI by focusing on both the demand and supply side constraints. We have permitted non-bank entities to partner with banks for their FI initiatives. The technological advancement has made it possible for us to think of novel and innovative ways to approach the objective of financial inclusion. For example, handheld devices, used by bank agents to draw people living in remote areas into the banking fold. Mobile technologies are trying to reach out to the populace starved of banking services as well. Financial institutions are also joining forces with network operators in providing access to mobile based payment services even to those who do not have bank accounts.

10. Let me give you some statistics on our financial inclusion initiatives4:

􀀹 Nearly 268, 000 banking outlets have been set up in villages as on March 13 as against 67,694 banking outlets in villages in March 2010

􀀹 About 7400 rural branches opened during this period

􀀹 Nearly 109 million Basic Savings Bank Deposit Accounts (BSBDAs) have been added, taking the total no. of BSBDAs to 182 million. Share of ICT based accounts have increased substantially – Percentage of ICT accounts to total BSBDAs has increased from 25% in March 10 to 45% in March 13

􀀹 With the addition of nearly 9.48 million farm sector households during this period, 33.8 million households have been provided with small entrepreneurial credit as at the end of March 2013

􀀹 With the addition of nearly 2.25 million non-farm sector households during this period, 3.6 million households have been provided with small entrepreneurial credit as at the end of March 2013.

􀀹 About 490 million transactions have been carried out in ICT based accounts through BCs during the three year period.

II. The relevance of international standards and principles for stretching a retail payment services beyond domestic boundaries

11. It is my considered opinion that the international community for too long has not accorded adequate importance to the retail payment system. I agree that reasons could be many and relevant. For instance, retail payment systems are far too heterogeneous. However, the growing importance of retail payments, the increased complexities and technology driven payment systems call for a revisit. Further, there are some retail payment systems in most countries which are ubiquitous in nature and have system-wide importance. At least in a large country like India we are talking about retail payment systems which are quite significant. Let me state a few numbers. We clear on a daily basis approximately 4.5 million cheques, operate nearly 2 million person to person electronic fund transfers, handle around 1.5 million bulk payments i.e. one-to-many and many-to-one payments. These are in addition to the large volume of card payments, internet and mobile transactions. We will be certainly better off having some principles and standards developed for the retail payment systems. Let me bring out a few issues to support my argument for international standards for retail payment systems.

12. There are retail systems that have cross-jurisdictional presence. For instance, card payments, international remittances, PayPal etc.

13. In the case of card payments, it is generally the leading global card networks which are taking the lead in determining the industry standards for form factor as well as security standards (EMV Chip; 2FA), without active regulatory intervention. However, such standards have implications for countries - in terms of cost of migration to newer standards, impact on domestic card networks (cost of certification, access to new standards / technology etc.). Should the regulators be involved in standard setting so that there is a level playing field for both international and domestic entities?

14. For large value payment systems, regulatory arbitrage is sought to be addressed through international common standards and principles. How can similar concerns be addressed for retail systems with system-wide importance as the extant standards are either region-specific or country-specific? One area where there is ample scope for common standards is the areas of security in electronic payments. For instance, taking card payments once again, while on the one hand Europe has the EMV standard already implemented, USA is still continuing with Magstripe. So where does this leave other emerging countries such as India? We are striving to move towards EMV but are aware that Magstripe cards will be around for some time. Though we have strengthened our card transactions domestically using 2FA with Magstripe cards, there are still jurisdictions where magstripe is still in vogue but without 2FA requirements. Hence, such arbitrage opportunities need to be addressed by adopting minimum common security standards.

15. Despite several efforts at addressing the issues relating to international remittances (for instance, the World Bank has prescribed certain guidelines), challenges pertaining to reducing the cost of remittance and addressing the AML / FATF issues (lack of standards, legal and regulatory requirements between remitting and receiving countries is being exploited) continue to persist. Since it is a recognised fact that international remittances form a significant channel for cross-border payments, and form major part of GDP of few countries, the need for common standards and principles in this area would also be welcome.

16. The lack of international standards in retail payments could also affect the inter-operability between these systems – both at a domestic level as well as at international level. At a domestic level, currently in India, we are facing a challenge in promoting interoperability amongst the non-bank and bank operated payment systems. While considering the access of non-banks to inter-bank payment network, the challenges that need to be addressed are in terms of lack of standardisation of form factors, message formats, non- adoption of international standards for card security such as PCI-DSS etc.

17. At the same time, in India, we have also seen the advantages that standardisation can bring in, for facilitating inter-operability and contributing to the growth of certain payment systems. Right at the outset, the mobile banking guidelines issued in India prescribed certain standards for mobile banking message formats to ensure interoperability in transactions. Going forward, the NPCI implemented the IMPS for mobile banking facilitating inter-operable mobile banking transactions in the country. This has given a very good impetus to instant funds transfer on 24x7 basis using mobile banking.

18. So clearly there is a case for developing international standards and principles for cross border payment systems at the minimum. But the issue would be how to enforce such standards.

19. Then the issues related to home country and host country regulatory prescriptions also need to be addressed, with minimal scope for regulatory arbitrage. The final thought I have on this issue is besides international standards and principles, has the time come for “co-operative oversight" for internationally pervasive retail payment infrastructures?

III. What are the key considerations to be followed while innovating retail payment systems?

20. The first thought that comes to my mind when I consider this question, the remarkable foresight of the ECB in coming out with the document on minimum safety recommendations to improve online payment security to be implemented by 2015. I also want to acknowledge the seminal guidelines issued by the ECB on data quality. Both are outstanding documents.

21. To me, the thumb rule for any central bank has to be encouragement of innovations. But before innovations become a "product" of system wide importance, standards need to be put in place. Otherwise, there would be bigger issues to reckon with. (eg: cloud computing in the financial sector, rules for payment gateways, security standards for mobile banking or enabling NFC based payment instruments are some of the examples that come to my mind.) But be conscious that what is good for goose may not be good for the gander (mature systems vs. emerging systems).

22. The need and focus of innovations may vary significantly among countries – between countries with developed / mature payment systems and those where payment systems are evolving.

23. While safety and security are underpinnings of any innovation, in emerging payment system jurisdictions, the key consideration for innovations may revolve around accessibility, availability, affordability etc. whereas in mature / developed payments market, the focus may have shifted towards convergence of payment channels and real-time payments.

24. Another important issue that is emerging in the innovations context, relates to legal and oversight issues of the innovative payment services. Two examples come to mind: (a) virtual currencies and (b) access to customer accounts by third party service providers.

25. When innovations take place outside the banking domain, i.e., entry of non-banks in offering these services – raises certain issues: access to National Payment Systems by non-banks, extent of regulation, customer ownership and protection issues, data privacy and security.

THE STARS IN ECONOMICS

THE STARS IN ECONOMICS

Stanley Fischer, central bank governor extraordinaire, by Prakash Loungani

During his tenure in academia, Fischer established himself as a preeminent macroeconomist before taking on the job as chief economist at the World Bank. As the IMF's deputy in the 1990s, he dealt with economic, financial, and debt crises in countries the world over.
Stanley Fischer on Charlie Rose show

Solving History’s Puzzles
Carmen Reinhart, Harvard economist, by James L. Rowe Jr.
The profession’s most-cited female and co-author of one of the most important economics books of the past decade, Reinhart relies on empirics to solve economic puzzles.
The $787 Billion Question
Christina Romer, former chair of the U.S. Council of Economic Advisers, by Maureen Burke
Taking up the role of chair of the U.S. Council of Economic Advisers in 2009—in the midst of unprecedented economic uncertainty—Romer grappled with the most severe downturn since the Great Depression. Now back at Berkeley, she continues to advocate decisive government action to boost employment.
Romer on monetary policy
A Project in Every Port
Jeffrey Sachs, peripatetic development economist, by Prakash Loungani
Sachs played key economic advisory roles in governments the world over—offering solutions on transitioning to capitalism or fighting hyperinflation, but he has become more widely known and recognized for his tireless crusade against poverty.
Angelina Jolie travels with Jeffrey Sachs
The Man with the Patience to Cook a Stone
Justin Yifu Lin, first World Bank Chief Economist from a developing or emerging economy
From humble beginnings, Lin’s talent and tenacity helped him rise to success as one of China’s top economists. His “New Structural Economics” has spurred dialogue and a rethinking among development economists as to how governments can strategically target industrial development.
Lin’s book launch
Minder of the Gaps
Laura Tyson, first woman to head the U.S. Council of Economic Advisors, by Jeremy Clift
As an architect of President Clinton’s economic policy, Tyson promoted “aggressive unilateralism” in trade. Now, based at the University of California, Berkeley, she continues to identify ways to promote growth in the face of global competition and technological change.
Tyson on gender equality
Tyson on education
An American Globalist
C. Fred Bergsten, Peterson Institute founder, by Prakash Loungani
From positions in the Nixon and Carter administrations in the 1970s to inaugurating and heading up what would become one of the preeminent economic think tanks world-wide, Bergsten has devoted much of his life to furthering global economic integration.
Bergsten on video
Second Time Around
Ngozi Okonjo-Iweala, former World Bank Managing Director, by Jeremy Clift
Okonjo-Iweala returned to Nigeria in 2011 to take on the role of Nigeria’s economic czar. Growing up in the midst of a civil war instilled a sense of determination and hard work that she has taken with her throughout a successful career in development economics.
The Master Artisan
Elinor Ostrom, first woman to win economics Nobel, by Maureen Burke
Heralding a cooperative and interdisciplinary approach herself, Ostrom has amassed a body of work examining social norms and what makes people cooperate—including to the extent that they avoid “tragedy of the commons” outcomes, situations previously accepted by many economists as unavoidable.
The Human Face of Economics
George Akerlof, Berkeley professor and founder of identity economics, by Prakash Loungani
Well known for his early work on the economic consequences of information asymmetries, Akerlof’s long career at Berkeley also yielded a body of work in which he used innovative ways to look at unemployment. He has also been a perennial voice calling for sensible government regulation in the banking sector.
George Akerlof on Identity Economics
Residual Brilliance
Robert Solow, giant in the field of economic growth theory, by Atish Rex Ghosh
Solow looked at the sources of growth—capital, labor, and technological progress, finding the latter to be the main driver of long-term growth. For decades, his work has influenced governments’ policies across the world as they look to increase funding for technological research to spur economic growth.
Robert Solow on reshaping economics
Fun & Games
Avinash Dixit, economic theorist, by Jeremy Clift
Dixit’s work on modeling economic behavior under the conditions of “monopolistic competition” became a foundation for research in the field. As a long-time professor at Princeton, Dixit pursued research interests ranging from game theory to international trade to the role of democratic institutions in economic development.
Undercover Operator
Maria Ramos, academic-turned-Treasury mandarin, by Simon Willson
From key positions in the South African finance ministry, Ramos adeptly charted the policy options needed to help the country attain fiscal stability in the 1990s following its transition to democracy. Later as a bank chief executive, she applied the same brand of pragmatism and vigor as she had during her government years.
The Unlikely Revolutionary
Jang Hasung, Dean of Korea University, by Hyun-Sung Khang
Business professor, but activist at heart, Jang established himself as a crusader for corporate reform seeking greater accountability and transparency in the giant, family-run conglomerates of Korea.
Breacher of the Peace
Daron Acemoglu, Istanbul-born economist, by Simon Willson
Beyond economics, Acemoglu’s varied research interests have included a wide spectrum of political economy subjects. Raising questions on how economics and politics intersect, he often takes unique approaches by explaining topics, such as democracy, from an economic perspective.
The People’s Professor
Joseph Stiglitz, former World Bank Chief Economist, by Prakash Loungani
Having amassed a body of work examining the rather profound effects that the adequacy and availability of information has on economic transactions, Stiglitz also played a key role as chairman of the U.S. Council of Economic Advisors in the 1990s.
Stiglitz on Iceland
Stiglitz on reshaping economics
Michael Spence on reshaping economics
Questioning a Chastened Priesthood
Daniel Kahneman, psychologist who helped build the field of behavioral economics, by Jeremy Clift
Well known for his pioneering work integrating aspects of psychological research into economic science, Kahneman’s work is regarded as having laid the foundation for a new field of economic research—behavioral economics.
Still the Bottom Billion
Paul Collier, Director for the Center for the Study of African Economies at Oxford University, by Glenn Gottselig
Eternal advocate for the “bottom billion” living in the world’s poorest countries, Oxford University professor Paul Collier offers a prescription for helping lift low-income countries to higher levels of economic development.
Seeing Crises Clearly
Nouriel Roubini, founder of RGE Monitor, by Prakash Loungani
As one of the few voices that predicted many of the events leading to the 2008-09 global economic crisis, Roubini captured the attention of the economics profession. A professor at New York University, he also heads a global economic and market strategy research firm.
From Visionary to Innovator
Robert J. Shiller, best-selling author, by Paolo Mauro
Well known beyond the worlds of finance and economics thanks to the indices on home prices that bear his name, Yale professor Robert Shiller has studied and written extensively on the factors leading to bubbles in the economy.
The Catch-Up Game
Michael Spence, former Dean of Stanford Graduate School of Business, by Archana Kumar
Spence, best known for his groundbreaking work explaining how employees and employers interact, also served as Chair of the Commission on Growth Development, which had been tasked with determining strategies for sustainable growth.
Rise of the Undaunted Empiricist
Beatrice Weder di Mauro, first woman on Council of Economic Experts, by Simon Willson
Known for her direct and persistent style of inquiry and research, Weder di Mauro brought to the German Council of Economic Experts a record as a pathfinder in exploring the role of banks in transmitting financial contagion.
A Legacy of Model Elegance
Jacques Polak, former IMF chief economist, by James L. Rowe
A student amidst the Depression era and later signing on to work at a newly-created IMF, Polak became an economic force of the 20th century, pioneering the research that would become the basic economic approach of the IMF.
The Quest for Rules
John Taylor, former member of the Council of Economic Advisors, by Prakash Loungani
Best known for his namesake rule that described the response of the U.S. Federal Reserve’s interest rate target to inflation and business cycles, Taylor gained notoriety as the result of his simple equation‘s wide acceptance among central banks as a useful guide for policy.
Harnessing Ideas to Idealism
Michael Kremer, innovator on public policy problems, by Arvind Subramanian
Kremer, who helped pioneer the creation of a new instrument to boost the development of vaccines by securing advance promises to pay for them, also helped introduce a major methodological innovation in empirical development economics: the randomized evaluation of public policy interventions.
Topping the Charts
Robert Barro, one of the founders of new classical macroeconomics, by Prakash Loungani
As one of the ringleaders of the Chicago School–led revolution, Barro and his work became well known to scholars and policymakers in the 1970s, who were at that time reconsidering the Keynsian approach that centered on a government's ability to smooth out business cycles.
A Master of Theory and Practice
Guillermo A. Calvo, former chief economist at the Inter-American Development Bank, by James L. Rowe
As one of the preeminent scholars of both modern macroeconomic theory and the economics of emerging markets, Calvo contributed to the critique that incorporated people's expectations about policy, provided insights into time inconsistency and credibility issues, and sought better modeling of the economy to account for such distortions as "sticky prices."
Navigating Unchartered Waters
Otmar Issing, first chief economist of the European Central Bank, by Camilla Andersen
Issing helped set the course for the European Central Bank to become one of the most credible and powerful central banks in the world, adeptly navigating uncharted waters as the institution sought to implement inflation goals for the newly created euro area.
Ahead of His Time
Robert Mundell, former advisor to the UN, IMF, and World Bank, by Laura Wallace
A pioneer of modern international economics and inspiration to a generation of researchers, Mundell has been lauded for his analysis of monetary and fiscal policy under different exchange rate regimes and his analysis of optimum currency areas.
Economist as Crusader
Paul Krugman, winner of both the Nobel and Pulitzer Prizes, by Arvind Subramanian
Economics made Krugman famous; punditry made him a celebrity. As a hard-hitting political columnist Krugman has made influential contributions to both international trade theory and international macroeconomics.
The Quiet Integrationist
Haruhiko Kuroda, head of the Asian Development Bank, by Jeremy Clift
As President of the Asian Development Bank, Kuroda set in motion an ambitious agenda for a new financial architecture for Asia, all the while addressing the risks of a bird flu pandemic, the effects of the Asian tsunami, and a deadly earthquake in Pakistan.
Economics with a Social Face
Nora Lustig, Latin American development economist, by Conny Lotze
Lustig has been in the vanguard of development economists who not only insisted on the link between poverty reduction and macroeconomic policy, but also advocated well-targeted social policies to help the poor break out of poverty for good.
The Globalization Guru
Jagdish Bhagwati, founder of the International Journal of Economics, by Arvind Subramanian
Abandoning law for economics at when he began his studies at Cambridge University, Bhagwati went on to become a leading economist in the area of trade and development and a tireless opponent of protectionism and advocate of free trade.
Super Mario and the Temple of Learning
Mario Monti, former President of Bocconi University, by Jeremy Clift
As the EU’s former Commissioner for Competition, Monti left a lasting legacy on both the corporate world and competition policy. As the first chairman of Bruegel, he continued to shape European and global economic policymaking.
Managing the Currency of an 'Out' Country
Bodil Nyboe Andersen, former Denmark central bank governor, by Camilla Andersen
After her stint as a lecturer at Copenhagen University, Andersen went on to serve on the management board of Unibank, Denmark’s second largest bank. As central bank governor of Denmark, she presided over the bank during a tumultuous time.
In on the Ground Floor
Linah Mohohlo, Botswana central bank governor, by Jacqueline Irving
Beyond her achievements in managing Botswana's monetary policy, Mohohlo also played a role in the private sector, sitting on the boards of several major companies, and has been an influential voice calling for action from the international community on issues such as development aid, fair trade, and debt relief.
Freedom as Progress
Amartya Sen, inventor of better measures of poverty, by Laura Wallace
Known for restoring “an ethical dimension” to the discussion of vital economic problems by combining tools from economics and philosophy, Sen’s contributions to social choice theory, welfare economics, and economic measurement have been seminal.
Budget Guru Takes a Stand
Alice Rivlin, former vice-chair of the Fenderal Reserve, by Elisa Diehl
With more than 30 years in service in the U.S. government, Rivlin was the founding director of the Congressional Budget Office and also served in the Office of Management and Budget and the U.S. Federal Reserve.
Getting There First
Martin Feldstein, former chair of the Council of Economic Advisors, by Prakash Loungani
Feldstein made a lifelong study of the effects of taxes and social insurance while also pioneering the new field of health economics. In his tenure as president of the National Bureau of Economic Research, he led in the revitalization of the Bureau as a top-notch think tank.
Hearing the Dogs Bark
Hernando de Soto, best-selling author, by Jeremy Clift
As founder of the Lima-based think tank, the Institute for Liberty and Democracy, de Soto argued that the key to both defeating international terrorism and securing capitalism is enabling poor entrepreneurs across the developing world to become part of the system rather than excluded from it by bureaucracy and red tape.
Putting Economic Policy to the Test
Esther Duflo, Massachusetts Institute of Technology economics professor, by Asimina Caminis
As a development economist and one of the co-founders of the Poverty Action Lab, Duflo challenges some of the cherished assumptions on which many development policies are based.
Concentrating the Mind
Allan H. Meltzer, expert on development and applications of monetary policy, by Jeremy Clift
Meltzer, who briefly served in the U.S. Treasury during the presidency of John F. Kennedy and later was an advisor to Ronald Reagan, is regarded as one of the icons of American economics.
The Lab Man
Vernon Smith, senior fellow at Cato Institute, by Jeremy Clift
As a pioneer in the use of experimenting in the controlled environment of a laboratory to test economic theories, Smith’s work helped shift the perception of economics as a nonexperimental science that had to rely on observation of real-world economies rather than the controlled experiments.
Challenges of the New Millennium
John Kenneth Galbraith, former president of the American Economic Association, by Asimina Caminis
Longtime professor of economics at Harvard University, Galbraith offers his views on the inherent instability of capitalism, why democracy is important for economic growth, and how financial crises offer the opportunity to “clean up” incompetence in the banking system, the industrial system, and, to some extent, in government.