As work on understanding the lasting effects of the COVID-19 pandemic continues, the Department of Economics, Barnard College, is launching a new series of bi-weekly themed discussions, led by Prof. Elham Saeidinezhad. These sessions’ goal is to discuss ongoing developments in the world of Central Banking, Finance, and Monetary Economics. Additionally, these themed discussions will allow direct communication with students on questions arising from the pandemic and the changing financial ecosystem.
If you would like to attend these sessions, please contact Prof. Saeidinezhad at <esaeidin@barnard.edu>.
The information about each session will be posted here before the meeting. Please note that
- These meetings are for Barnard College or Columbia Students only.
- Students are encouraged to read the related papers before the meetings.
Money View Chat with Prof. Elham Saeidninezhad, 12:30-1:30 EST, Friday, Oct 2nd, Oct 16, Oct. 30, …Dec. 11.
Upcoming Sessions
#6 Friday, Dec 4: The Economics of Exchange Traded Funds
The next and last Money View chat will be held on Friday, Dec 4, 12:30 PM- 1:30 PM EST rather than Nov 27 as it is Black Friday.
This session will focus on the Economics of Exchange Traded Funds (ETFs) by comparing this investing strategy with
1) Corporate Bonds and
2) Mutual Funds.
To prepare for this session, I encourage you to review the following papers:
The recent distress in corporate bond markets: cues from ETFs
Past Sessions:
#1 Friday, Sep 18: Should the U.S. adopt Yield Curve Control?
The first session was on Yield Curve Control. In this session, we discussed the differences between Yield Curve Control and Asset Purchasing Program and why the COVID-19 crisis is pushing central banks towards such new approaches.
Related Papers:
The Fed Has Better Tools than Yield Curve Control
Japan’s Experience With Yield Curve Control
#2 Friday, Oct 2: Is FX Swaps the Future of Dollar Funding Market?
In this “Money View Chat” discussion series, we will analyze the post-COVID-19 crisis developments in the FX market through the money view lens. We investigate how the new market-based financial system has turned the FX swap market into a money market and why the Fed should include this instrument in its asset purchasing program.
Related Papers:
Covid-19 and Global Dollar Funding
Why FX Swap Lines are the Most Important Fed Actions Thus Far?
Is the Monetary System as Systemic and International as Coronavirus?
#3 Friday, Oct 16: Understanding Private Equity Trends: Does it Worth to Go Private?
The third “Money View Chat” series will be held on Friday, Oct 16. This session examines the economics of the private equity funds and then discusses the recent trends in this financial market segment. The session is called “Understanding Private Equity Trends: Does It worth to Go Private?”
To prepare for this session, it is encouraged to read the following two articles:
Private credit: recent developments and long-term trends
The Economics of the Private Equity Market
#4 Friday, Oct 30: Do Dark Pools Harm Price Discovery?
The next Money View chat will be on the impact of dark pools on price discovery.
Dark pools are equity trading systems that do not publicly display orders. Dark pools offer potential price improvements but do not guarantee execution. Informed traders tend to trade in the same direction, the crowd on the heavy side of the market, and face a higher execution risk in the dark pool, relative to uninformed traders. Consequently, exchanges are more attractive to informed traders, and dark pools are more attractive to uninformed traders. Under certain conditions, adding a dark pool alongside an exchange concentrates price-relevant information into the exchange and improves price discovery. Improved price discovery coincides with reduced exchange liquidity.
To prepare for this session, I highly recommend you to read the following papers:
Dark Pools in Equity Trading: Policy Concerns and Recent Developments
#5 Friday, Nov 13: What Made Black Wednesday So Dark: Understanding Macro Hedge Funds Strategy?
On Friday, Nov 13, the fifth Money View Discussion series will be on “Understanding Macro Hedge Funds” – an investment strategy that legendary traders, such as George Soros, used to execute, leading to the “Black Wednesday” when Soros Fund Managers broke Bank of England and forced the Bank to leave the European Exchange Rate Mechanism (ERM).
In this strategy, the traders bet against the financial health of a nation. Such strategy became unpopular after the 2007-08 GFC as the central banks’ actions stabilized the economies but became popular again after the COVID-19 Pandemic. To prepare for the discussion, please read the following articles:
Macro hedge funds enjoy unlikely renaissance
Investors find a novel way to hedge their portfolios: hedge funds
How Soros Broke the British Pound
Related Announcements:
#1
Tuesday, Oct 6, 2020: Guest Lecture on Interest Rate: Dollar Funding and Libor Rate by Zoltan Pozsar
We are pleased to announce that we are going to have Zoltan Pozsar, Managing Director, Credit Suisse, as our guest speaker. For those of you who are following the market, you probably already know Zoltan’s work as his research papers in Credit Suisse is known for his unique understanding of the financial market. Before joining Credit Suisse, Zoltan worked at NY Fed, where he wrote his seminal paper on shadow banking and IMF.
Zoltan will talk about Interest Rate: Dollar Funding and Libor Rate. To prepare for his lecture, please read the following articles, already posted on the course website, and listen to the podcast:
Global Money Notes #29: U.S. Dollar Libor and War Finance
Global Money Notes #30: Singularity
Global Money Notes #31: U.S. Dollar Libor and Swap Line Rollovers
Odd Lots Podcast: Zoltan Pozsar and Perry Mehrling On The Market Crisis
#2
Barnard College, Department of Economics Discussion Serie: No Free Lunch: Friday Chats with Barnard Econ Professors, 12:30-1:10 EST
The Department of Economics is pleased to introduce another Friday lunchtime series, open to all Barnard students, where Barnard seniors interview economics professors. These are casual events; attend as many as you’d like and you do not need to sign up. Here’s the upcoming schedule:
Friday, Oct 9th: Juliet Emerson-Colvin (’21) interviews Prof. Sharon Harrison
Friday, Oct. 23rd: Hibah Rafi (’21) interviews Prof. Anja Benshaul-Tolonen