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Awards and Honors

Michael Hutchison gives invited talk at Federal Reserve Bank

By Jennifer McNulty

Michael Hutchison, professor of economics and interim dean of the Social Sciences Division, gave a talk December 3 at the Federal Reserve Bank in New York City as part of an invitation-only bank conference on financial globalization.

Hutchison's address was entitled "Currency Crises, Capital Controls and Selection Bias."

The conference brought together a small group of distinguished researchers who presented papers that explored the benefits and vulnerabilities arising from international capital mobility. Economics professor Michael Dooley was a discussant.

Although financial globalization offers many potential benefits, including protection against national shocks, more efficient global allocation of resources, and improvements in international standards of living, the interconnectedness fostered by globalization increases the exposure of participants to financial and real shocks and to the risk that sudden capital reversals may translate into large-scale economic disruption.

Specific topics included recent trends in international capital flows, frictions in increased global integration, international adjustment to macroeconomic shocks and sustained trade imbalances, and the redesign of institutions to better serve global capital markets.

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