Experience Stern | News & Events

Excerpt from Fortune -- "Without fresh funding, Greece could go bankrupt by mid-2015 at the latest. 'This puts the ECB in the most central position,' says Economides. 'The ECB is in a position to throw Greece out of the Euro. They’re not politicians, they’re a bank. Depending on the ECB is an extremely risky position for the new government to put themselves in.'"

Excerpt from Bloomberg -- "In some sense, you could argue that when the Fed starts to normalize after this very unusual period, that that will be actually psychologically helpful because it will tell the world that the US is back on a normalization path. That will be a sign of health. I don't expect the Fed to rush into this. In fact, you could argue that, with oil prices having fallen so far, that that will give the Fed a bit of a chance to be even more patient. Inflation is lower and we have had a positive supply-side shock. If anything, the textbook response to that is to wait longer."

Excerpt from Bloomberg -- "Before we find a policy solution, we have to understand the reason why there is this rising inequality. I think it's a combination of factors that are complicated. One is that technological innovation is becoming increasingly capital-intensive, skill-biased and labor saving. Eventually, the robots are going to replace lots of not just blue collar, but even white collar jobs. And, secondly, trade and globalization has lead to competition from Asia and other parts of the world for low-value-added, low-skill jobs, both in manufacturing but now in services... Third of all, there is this winner-take-all, superstar effect. If you are the best trader, the best banker, the best lawyer... of course you now have a market of potentially billions of consumers of your products and services. And therefore, they can enjoy more of the benefits of globalization. So there are many different factors that are leading to this concentration of income and wealth."

Excerpt from Luxury Daily -- "'For a brand like Bottega Veneta, a brand of inconspicuous quality that relies heavily on the quality of materials, design and craftsmanship, building the microsite is a studied strategic initiative,' said Thomaï Serdari, Ph.D. brand strategist and adjunct professor of marketing at New York University, New York. 'It allows the brand to tell the story of the product and treat it as an exceptional entity amongst its other offerings.'"

Excerpt from AFP -- "Arun Sundararajan, a New York University economist who studies the sharing economy, told a January congressional hearing that 'this transition will have a positive impact on economic growth and welfare, by stimulating new consumption, by raising productivity, and by catalyzing individual innovation and entrepreneurship.'"

Excerpt from Marketwatch -- "Consider a study conducted in the mid-1990s by three finance professors — Stephen J. Brown of New York University, William Goetzmann of Yale University and Alok Kumar of the University of Miami. They fed Hamilton’s market-timing editorials from the early decades of the past century into neural networks, a type of artificial-intelligence software that can be 'trained' to detect patterns. Upon testing this neural network version of the Dow Theory over the nearly 70-year period from 1930 to the end of 1997, they found that it beat a buy-and-hold strategy by an annual average of 4.4 percentage points. Their study appeared in the August 1998 Journal of Finance."

Excerpt from WIRED -- "'The broader context here is for us to start thinking about a safety net that is creative, that is not contingent on employment by a large company,' says Arun Sundarajaran, a professor at New York University’s Stern School of Business."

Excerpt from San Francisco Chronicle -- "New York University finance Professor Aswath Damodaran said the entire brouhaha centers on a fantasy. 'What we have is two companies supposedly fighting over a market that does not even exist,' he wrote in an e-mail."

Excerpt from Bloomberg -- "'Without European loan support, Greece will run out of money in March, possibly sooner,' said Nicholas Economides, professor of economics at New York University’s Stern School of Business. 'This could result in a new Greek bankruptcy within the euro or even a "grexit,"' the term used for a Greek withdrawal from the common currency."

Excerpt from Newsweek -- "Conducted by Jason Chan, assistant professor of information and decision sciences at the University of Minnesota and professor Anindya Ghose from NYU’s Stern School of Business, the study revealed a surprising increase in cases of HIV when a city adopted the intermediary service provider."

The NYU Stern Center for Global Economy and Business will host the Economic Outlook Forum on February 3, 2015.

Excerpt from Clinical Leader -- "But will the ruling promote competition and consumer welfare, or will it have the exact opposite effect? Attorneys from the law firm Ballard Spahr, along with Melissa Schilling, a professor from New York University’s Stern School of Business, have filed an amicus brief on behalf of 12 leading professors of management, organization, and policy supporting an appeal of the district court ruling. The brief notes the high cost of research and development will result in the injunction having the opposite effect. According to the brief, 'To the contrary, it is inefficient and anti-competitive to force a company to continue to support a product that it has replaced and for which the government’s witness agrees there is no 'market need.'"

Excerpt from Strategy + Business -- "Sustaining a business in uncertain times requires executives to prioritize stability, resilience, and relationship management. Underpinning all three is a shift in strategic direction—from a focus on growth above all else to a focus on having enough. You make your company prosper enough by maintaining and improving the quality and caliber of what you do. You decentralize your business enough so that the parts can be strong if the whole faces risk. And you maintain and improve the relationships that your business depends on enough by integrating them with your whole company. Developing these executive practices won’t shield you from crisis, but it will help ensure that when the dust settles, your company is not just standing, but moving forward."

Excerpt from The Wall Street Journal -- "'This is a judgment that you’d think that people would be motivated to get right,' said Justin Kruger, a social psychologist and professor in the marketing department at NYU’s Stern School of Business. 'There are all sorts of disincentives and punishments for being late, and the paradox is we’re late even when those punishments and consequences exist.'"

Excerpt from The Huffington Post -- "Sundararajan argued that this business model is risky for Instacart and other firms like it because it hands over so much control to workers who don't feel particularly invested in the company's overall health. Workers have detailed similar experiences at other rapidly growing apps, Uber and HomeJoy among them. Sundararajan suggested that a company like Instacart consider, at minimum, pairing newbie shoppers with expert mentors when they are starting out. 'Eventually these companies’ brand comes from consistent high quality, and that rests almost entirely in the hands of freelance workers,' Sundararajan said. 'It’s simply smart capitalism to have a healthy workforce of people motivated to work for you.'"

Excerpt from Bloomberg -- "'I wouldn't even call this a failure. I'd call it an assisted suicide,' says Scott Galloway, a professor of marketing at New York University's Stern Business School. 'It's amazing it's taken this long for this company to go out of business.'"

Excerpt from Forbes -- "The temptation in developing Super Bowl ads is to go part way: to create the ads that seem clever in some way, but not strategically sound or effective in achieving important brand objectives. Having been on both the client and agency side, I know first-hand that it can be a tricky balancing act managing the creative process between brands and agency creative teams. The challenge and management skill is to not ... stifle creativity, but also not to loose the incredibly valuable opportunity to increase positive brand understanding. In the end, advertising, no matter how subtle and two-way the communication, is about making more people want to buy, benefit from, or identify with brands."

Excerpt from BusinessBecause -- "'Many veterans joined the military to feel a sense of purpose, and upon transitioning to civilian life they want to continue to feel this sense of purpose in their future careers,' says Isser Gallogly, assistant dean of MBA admissions at NYU Stern."

Excerpt from BBC -- "When we came out of World War II in the 1940s and created the United Nations, the assumption was that governments were all-powerful; they could handle anything. And we live in a very different world today. ... If you look at the global economy, half of the world's largest economies today are actually not states. Half of the biggest economies are private companies. So, Walmart is the 31st biggest economy in the world, roughly the size of Belgium or Nigeria or the Philippines. And I think we haven't really adjusted to those changes."
 

Excerpt from Chicago Tribune -- "Buying stuff to make ourselves feel better after a failure is not only expensive but could backfire and lead us to think more about our shortcomings, according to the study, 'Perils of Compensatory Consumption,' by Rucker, the Northwestern professor, Monika Lisjak of Erasmus University, Andrea Bonezzi of New York University and Soo Kim of Cornell University. Just as bad, retail therapy can strip consumers of mental resources and impair their self-control, the study says. And less self-control has been shown to potentially lead to excessive spending."

Excerpt from Marketplace -- "When a company messes up, three things need to happen, Galloway says. 'The first is to acknowledge the issue, to basically admit that you made a mistake,' he says. 'The second is to have the top guy or gal make that admission – so to get the CEO front and center. And the third is to overcorrect. To offer consumers a better deal than they originally had. Those are the only three things you need to remember, and they are consistently ignored.'"

Excerpt from OZY -- "What no one is saying is this: We need more jobs — and capitalism creates them. If we continue on this trend of bashing capital and open markets, our labor markets don’t stand a chance."

Excerpt from Project Syndicate -- "Simply put, we live in a world in which there is too much supply and too little demand. The result is persistent disinflationary, if not deflationary, pressure, despite aggressive monetary easing. The inability of unconventional monetary policies to prevent outright deflation partly reflects the fact that such policies seek to weaken the currency, thereby improving net exports and increasing inflation. This, however, is a zero-sum game that merely exports deflation and recession to other economies."

Excerpt from Financial Times -- "But there is also a real sense that China’s generous welcome to these institutions is part of its own need to modernise its higher education system, says NYU’s Prof Zemel. 'I think China is now struggling with the next phase of economic development. They have done a good job but they know that low-cost is running its course,' he says. The next phase is to invest in innovation and this means changing the way students are educated more widely. 'The objective of NYU in Shanghai is not to educate the 2000 [enrolled] students,' says Prof Zemel, 'but to have a long-term impact on other institutions.'"

Excerpt from New York Post -- "'The stagnation in wages is such a broader challenge for society than anything a minimum change in the minimum wage can ever address,' [Foudy] said. 'The only gift New Yorkers have gotten in the last couple of months is lower gas prices.'"