Domenico Delli Gatti of Catholic University in Milan to be Awarded a Grant from the Institute for New Economic Thinking
An INET grant will fund Professor Delli Gatti to develop new ideas and policy proposals to contain the spread of systemic risk in the financial system
New York, NY, January 09, 2011 --(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 Domenico Delli Gatti of Catholic University in Milan to provide new ideas and policy proposals to contain the spread of systemic risk in the financial system through appropriate regulation of financial markets and intermediaries, as well as the design of monetary policy. 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.
Professor Delli Gatti’s project will involve an in-depth examination of systemic risk - the spread of financial fragility in the economy on a scale that leads to a financial crisis. The subprime crisis of 2007, the Global Financial Crisis of 2008, and the extraordinarily long and painful recession that ensued, have dramatically unveiled the recent build-up of systemic risk.
“The Global Financial Crisis of 2008, and the continued recession have revealed the dramatic ramifications of systemic risk,” said Dr. Robert Johnson, Executive Director of INET. “Professor Delli Gatti’s research, regulatory concepts and monetary policy recommendations may help devise ways to protect society from the risk of a new global financial crisis.”
Domenico Delli Gatti is currently a professor of economics at Catholic University in Milan, where he received his PhD. His research interests are: financial factors and business fluctuations; the transmission mechanism of monetary policy (financial accelerator); heterogeneity and interaction in macro-dynamic models.
“The origin of the financial crisis may be due to external shock, but it is the web of financial and credit inter-linkages that spreads and sometimes amplifies the shock, turning 'turbulence' into a full-fledged financial meltdown. An increase of systemic risk translates into a corresponding increase in the probability of bankruptcy at the individual and at the aggregate level,” said Delli Gatti, Professor of Economics at Catholic University in Milan. “In order to further understand and evaluate systemic risk, this project will adopt a view of the financial system as a network of financial obligations.”
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 34 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/
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Professor Delli Gatti’s project will involve an in-depth examination of systemic risk - the spread of financial fragility in the economy on a scale that leads to a financial crisis. The subprime crisis of 2007, the Global Financial Crisis of 2008, and the extraordinarily long and painful recession that ensued, have dramatically unveiled the recent build-up of systemic risk.
“The Global Financial Crisis of 2008, and the continued recession have revealed the dramatic ramifications of systemic risk,” said Dr. Robert Johnson, Executive Director of INET. “Professor Delli Gatti’s research, regulatory concepts and monetary policy recommendations may help devise ways to protect society from the risk of a new global financial crisis.”
Domenico Delli Gatti is currently a professor of economics at Catholic University in Milan, where he received his PhD. His research interests are: financial factors and business fluctuations; the transmission mechanism of monetary policy (financial accelerator); heterogeneity and interaction in macro-dynamic models.
“The origin of the financial crisis may be due to external shock, but it is the web of financial and credit inter-linkages that spreads and sometimes amplifies the shock, turning 'turbulence' into a full-fledged financial meltdown. An increase of systemic risk translates into a corresponding increase in the probability of bankruptcy at the individual and at the aggregate level,” said Delli Gatti, Professor of Economics at Catholic University in Milan. “In order to further understand and evaluate systemic risk, this project will adopt a view of the financial system as a network of financial obligations.”
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 34 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/
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Institute for New Economic Thinking
Bill Fallon
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ineteconomics.org
Bill Fallon
212 925 6900
ineteconomics.org
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