New York, NY, November 05, 2010 --(PR.com
)-- The Institute for New Economic Thinking (INET), launched with a $50 million pledge from George Soros to promote changes in economic theory and practice through research grants, Task Force groups, academic partnerships, and conferences, announced that it has selected David Weinstein of Columbia University to be awarded a project grant through the Institute’s Inaugural Grant Program to research how the output of firms outside of the financial sector are affected by the health of the banks and other financial institutions. The grant program, along with other INET initiatives, was created in direct response to arguably the worst economic crisis in world history, and has been designed to encourage and support new economic thinking. Starting in 2011, INET will conduct two grant cycles annually.
Presently, our understanding of the real effects of financial crises has largely been based on evidence arising from industry studies or has been limited to evidence of how financial health affects the providers of credit. Through this research project, Professor Weinstein plans to use INET’s funding to provide the first empirical assessment of how the output of firms outside of the financial sector is affected by the health of the banks and other financial institutions. This will enable the researchers to trace how problems in financial institutions were transmitted to firms outside of the financial sector.
“David Weinstein takes a very interesting approach to empirical macroeconomics and the finance theory with Japanese data,” commented Dr. Rob Johnson, executive director of INET. “Japan’s financial crises of the 1990s have a number of striking parallels to the 2008 global crisis that make it especially relevant for understanding what has happened here more recently.”
David E. Weinstein is Carl S. Shoup Professor of the Japanese Economy at Columbia University. He is Director of the Japan Project at the National Bureau of Economic Research and a Member of the Council on Foreign Relations. Professor Weinstein held Associate Professor positions at Harvard and the University of Michigan. He also served on the Council of Economic Advisors from 1989 to 1990. Professor Weinstein earned his Ph.D. in Economics from the University of Michigan and his B.A. at Yale University. He is the recipient of numerous grants and awards including four National Science Foundation grants.
“My research aims at trying to understand how Wall Street matters for Main Street. In other words, how it is that financial shocks like the ones experienced at Lehman get transmitted to firms outside of the financial sector,” said David E. Weinstein, Carl S. Shoup Professor, Columbia University. “Hopefully, my work in this area will help people understand how to formulate policies to prevent financial crises from metastasizing into the general economic sphere. INET’s support was instrumental in providing me the data and resources to carry out this analysis.”
INET’s Inaugural Grant Program has been designed to harness the new economic thinking we recognize as crucial to effecting change. The program was launched this summer and received more than 500 applications from around the world and has selected 31 initiatives to be awarded grants totaling $7 million. INET's Grant Program will continue with two similar grant cycles annually, the next one commencing in the spring of 2011.
For further details regarding INET’s Grant Program or additional projects and people to be awarded grants please visit the Institute’s website.
About the Institute for New Economic Thinking:
Launched in October 2009 with a $50 million commitment from George Soros and driven by the global financial crisis, the Institute for New Economic Thinking (INET) is dedicated to empowering and supporting the next generation of economists and scholars in related fields through research grants, Task Force groups, academic partnerships, and conferences. INET embraces the professional responsibility to think beyond current paradigms. Ultimately, INET is committed to broadening and accelerating the development of innovative thinking that can lead to insights into and solutions for the great challenges of the 21st century and return economics to its core mission of guiding and protecting society. For more information please visit http://www.ineteconomics.org/