Renowned economist who predicted the 'credit crunch', Professor of economics at New York University’s Stern School of Business.
One of the most respected and influential economists in the world, Nouriel Roubini provides an insightful look at what is ahead for the US and global economy.
Nouriel Roubini is the Chairman and CEO of Roubini Macro Associates, LLC, his own global macroeconomic consultancy firm. He is also a professor of economics at New York University’s Stern School of Business. Dr. Roubini has extensive policy experience as well as broad academic credentials. From 1998 to 2000, he served as the senior economist for international affairs on the White House Council of Economic Advisors and then the senior advisor to the undersecretary for international affairs at the U.S. Treasury Department, helping to resolve the Asian and global financial crises, among other issues. The International Monetary Fund, the World Bank and numerous other prominent public and private institutions have drawn upon his consulting expertise.
He has published numerous theoretical, empirical and policy papers on international macroeconomic issues and coauthored the books “Political Cycles: Theory and Evidence” (MIT Press, 1997) and “Bailouts or Bail-ins? Responding to Financial Crises in Emerging Markets” (Institute for International Economics, 2004) and “Crisis Economics: A Crash Course in the Future of Finance” (Penguin Press, 2010). Dr. Roubini’s views on global economic issues are widely cited by the media, and he is a frequent commentator on various business news programs. He has been the subject of extended profiles in the New York Times Magazine and other leading current affairs publications. The Financial Times has also provided extensive coverage of Dr. Roubini’s perspectives.
Dr. Roubini received an undergraduate degree at Bocconi University in Milan, Italy, and a doctorate in economics at Harvard University. Prior to joining Stern, he was on the faculty of Yale University’s department of economics.
Upsides and Downsides in the Global Economy and Financial Markets
The outlook for the global economy and financial markets is mixed. The positives and upside include a pickup in global growth after years of a new mediocre, profitable corporate firms, better business and consumer confidence, more optimistic investors with markets in risk on mode, the rise of emerging markets, new technologies and innovation. The downside are however several: uncertainties about Trumponomics, the risks of European and Eurozone disintegration, the potential for a hard landing of highly indebted China, the sluggish global growth and productivity in a world of high private and public debts, the frothiness in financial markets and the risks of assets and credit bubbles fed by easy monetary policies, the backlash against globalization and geopolitical risks. Markets are now bullish is not bubbly but the economies are still sluggish. Roubini argues that a new policy framework is needed to minimize the downsides and maximize the upsides.
Key Economic Challenges of Our Times
While the short term outlook for advanced economies and emerging markets is mixed there are longer term economic challenges that most countries faces. Potential growth and productivity growth are low in spite of new industries of the future and innovation; while structural reform to boost growth are politically challenging. Private and public debts are a burden on growth but appropriate productive fiscal policies such infrastructure spending can boost both the supply and demand side of growth. Unconventional monetary policies are still the norm in most advanced economies, maybe necessary but with side effects. Globalization and technological innovation have benefited the world but also disrupted jobs, firms, sectors and entire economies as there are winners and losers within countries and across countries; thus, the populist backlash against it. Demographic changes and more healthy longevity provide opportunities but also fiscal risks given unfunded health care and pension schemes. Thus, Roubini argues that we live in a world of change, risks, disruptions and uncertainties that need to be managed properly to ensure global economic prosperity and financial stability.