Think at London Business School
Nick Mickshik relates how Hélène Rey’s groundbreaking research brought about a radical revision of monetary policy at the highest levels
By Nick Mickshik
Influential faculty. Applied excellence. Cutting edge research - is at the root of our first-class teaching.
Study alongside faculty who advise national and international government agencies and corporations. Areas of focus include:
Professor of Economics; Fellow of the British Academy
Professor of Economics; Academic Director (MBA and Mif)
Assistant Professor of Economics
Professor of Economics; Chair, Economics Faculty
Professor of Economics
Professor of Economics; Academic Director, Wheeler Institute for Business and Development
Professor of Economics; Academic Director, AQR Asset Management Institute
Professor of Economics
Lord Raj Bagri Professor of Economics
Professor of Economics
Assistant Professor of Economcs
Professor of Economics
A key part of our Masters programmes curriculum.View courses Show less
Explore key issues in macroeconomics and international finance, including: What are business cycles, what drives them and how do they affect the decision-making process of firms and policy makers? What is monetary policy? What role does it play for providing economic growth and stability? Have firms and financial markets become “addicted” to low interest rates? What is the role of fiscal policy in the economy? When should a country worry about its level of debt and when is it ok to spend more? Why are sovereign debt crises costly both for firms and for the economy and how can we avoid them? What theories can explain the behaviour of one of the most important macroeconomic variables for business, finance and trade? What are the current and capital accounts of a country and how do we think about the debt sustainability of a whole country? Can countries have stable exchange rates, free flow of capital and monetary policy independence all at the same time? If not, what are the trade-offs?
Long term corporate success requires navigating the changes that reshape the world economy and the business agenda. Gain knowledge on possible future changes, how they shape the corporate agenda and the strategic issues that will arise in response.
Never get caught out on the broad macro issues that drive markets and finance and understand how these impact your organisation. Study the drivers of global macroeconomic development; national wealth, banking, structure, monetary markets, regulation and financial crises. Learn to converse knowledgeably about today’s global macroeconomic issues and gain an understanding of institutional and theoretical frameworks.
Optional courses providing a deep dive into specialist areas.View electives Show less
This course analyses the relationships between the financial system, central banks and the economy. We will explore the following questions: What purpose does the financial system serve? How are money and credit created in the modern economy? How do banks, central banks and financial markets interact? How have central bank tools and objectives evolved? How should the financial system be regulated? We will make frequent references to current debates among policy-makers and financial market participants.
The objective of this course is to expose business students to applications of machine learning tools in business and finance. The course covers some of the most commonly used machine learning algorithms ranging from ridge and lasso and deep neural network for regression and classification problem to clustering and principal component dimensionality reduction. The course will end with a look at more advanced techniques commonly employed for specific tasks in economics and finance. The approach of the course is profoundly practical. For each algorithm we provide the essential theoretical intuition, most of the focus is on the practical implementation of these learning techniques. We will be using Python. No knowledge of Python is required. Students will work on the Python implementation of the various machine learning techniques to real-world data and applications in the second part of each class.
The aim of the course is to give a balanced evaluation of the opportunities and pitfalls for businesses in the main emerging markets of Russia, Central and Eastern Europe, Latin America, South and East Asia, Middle East, and Africa. A detailed framework will be provided within which to evaluate the risks and gains from doing business in a wide variety of emerging markets, particularly the BRIC (Brazil, Russia, India and China) economies.
From 1990 onwards, the European Union was progressing towards an integrated financial area, culminating in monetary union (EMU) and the Financial Services Action Plan. The Eurozone debt crisis partly reversed this process. But a Banking Union has been launched and there are plans for a Capital Markets Union. All of this has major consequences for the business environment. How does the European Central Bank differ from the Fed? Will the euro compete with the dollar as an international currency? Can European capital markets challenge the US for international portfolio managers and non-European issuers? Will the European banking sector experience a deep wave of cross-border restructurings? Will European securities exchanges merge - or disappear? The new regulatory environment is still under construction. Will the Eurozone and its banks survive? We will explore these and other key issues.
This course deals with the international financial environment in a globalised economy. It will provide tools for assessing the impact of economic policy shocks and financial disturbances on financial markets, exchange rates, and capital flows. The course is suitable for anyone seeking further understanding of the international macroeconomy, whose importance the recent crisis has revealed. It will be especially relevant for careers in investment analysis, asset management, hedge funds, capital markets, corporate finance, and the finance/treasury function of corporates. GCMC gives the global macroeconomic context for international financing decisions.
Every country around the world is ageing. Currently 1 in 11 people in the world are over 65, by 2050 it will be 1 in 6. In China, Europe and North America it will be 1 in 4. Further around the world life expectancy is increasing making longer lives a reality raising major issues for how to maintain health, finances and employment. These trends define one of the fastest growing markets of the future. However, it is trend little understood right now by firms and very little studied in business schools.
This was The Economics of a Pandemic (E607)
Digital networks shape our society and businesses by determining:o the information we access, o the people we interact with, o the products and services we access. But: o How do networks form, and what are their properties? o What is the impact of network homophily on how information diffuses and opinion forms? o How can we ``manipulate" digital connections to make our product or idea go viral? o How should we measure financial contagion, or more generally, systemic risk in an interconnected system? o How can we measure segregation in society and what is the effect of segregation on social mobility and inequality? This elective will equip you with the tools to better navigate in the real world where digital networks are more and more pervasive. Content and delivery: Made-to-measure teaching notes, scenario-based simulations & Class experiments.
This is a course in game theory and its application to business strategy. It offers an introduction to a selection of the methods and results of modern game theory. Special emphasis is placed on the practical applications of these tools. Many (if not all) business decisions depend upon the actions taken by others in the marketplace, either at the same time or in the future. Such decisions include optimal pricing rules, supply decisions, innovating, and capacity choices. When making a choice in these settings, a business faces a classic interactive decision-making problem: its best move depends on the likely moves of others. To anticipate these moves it must empathetically "walk in the shoes of others" so that it can assess what they might do.
This course will focus on introducing you to some of the key issues in macroeconomics and international finance. We study and provide an answer to key questions, among many others: What is GDP and what does it really measure? What is the economic meaning of value added? What makes a nation succesful and what are main drivers of growth in the long run? What is money and how does it relate to inflation? The course enables students to be able to recognise and construct logical economic arguments, read macroeconomic reports, and understand when and why the government makes important policy decisions such as a change in the target interest rate or changes in the tax rate. The aim is to provide a set of general skills portable across a range of industries, professions, and countries, which will make it possible to understand the forces that will dominate the domestic and global business environment in the immediate future, as well as over the coming years.
The aim of this course is to provide you with the knowledge of what the major issues affecting the global economy and financial markets are likely to be in the next five years and beyond. Therefore, as well as providing a deeper insight into policy and market issues, the course aims to give you greater experience in applying analytical tools developed during Understanding the International Macroeconomy (or a similar basic macroeconomics course) as well as extending your existing theoretical toolkit. We analyse developments of countries and regions of the world as examples on the basis of which we build the understanding of broad economic issues.
The first step to academic excellence.View courses Show less
Short programmes offering academic excellence, global focus and exceptional diversity of perspective.View programmes Show less
Think at London Business School
Alex Edmans explores the concomitant uptick in market performance when investors listen to upbeat tracks on Spotify
By Aine Doris
Want to know more about Economics at London Business School? We’d love to hear from you. Email Economics Subject Area Manager Eleanor Burke.