30 Nov 2015
The Economist names Hélène Rey the economist to watch in 2016
A London Business School economist has been named ‘the one to watch in 2016’ by The Economist.
Hélène Rey, Professor of Economics and Academic Director of the AQR Asset Management Institute, London Business School, receives the accolade for her research on the ‘global financial cycle’ and massive flows of money in the global economy.
Professor Rey says: “The global financial cycle in capital flows and asset prices is an important characteristic of international financial markets. In my research I have been trying to understand better its determinants and consequences.”
The Economist describes Professor Rey’s research on the global financial cycle as “well suited to a moment when the tide of global capital is turning once again.”
Conventional wisdom says the movement of capital across borders allows investors in mature, wealthy countries to seek out returns in capital-starved emerging economies. And investing in these economies nurtures the process of development there. But, according to Professor Rey, flows don’t always follow this pattern.
Nervous emerging economies may save money to protect themselves against fickle global markets, culminating in large quantities of foreign-exchange reserves.
Professor Rey is an expert on determinants and consequences of external trade and financial imbalances, the theory of financial crises and the organisation of the international monetary system.