News Release: Faculty Experts, Finance and Economics, Law, Politics

Oct. 8,  2008

Financial Expert: Bernanke, Starting from Disadvantage, Strives to Stem Crisis

Global coordination kicking in, says Emory's Rosensweig

Fed chairman Ben Bernanke "is doing all he can, but he's having to overcome initial poor coordination between the U.S. administration and Congress," says international financial expert Jeff Rosensweig of Emory University's Goizueta Business School. While Bernanke is fighting the perception that the bailout was "too little too late," Rosensweig adds that Bernanke has shown his commitment "to do everything it takes to turn this thing around."

Fighting the financial crisis will take good coordination globally as well, and politics must be a part of that, says Rosensweig. "The great thing about today is that the coordination finally has kicked in—as the credit crisis and stock market debacle spread globally, all major central banks have coordinated, cut interest rates, and this is having the needed positive impact," Rosensweig says. "Of course, things can and do change by the hour, so stay tuned."

Rosensweig, a former student of Bernanke's at MIT, is associate professor of international business and finance and director of the Global Perspectives Program. A former senior international economist at the Federal Reserve Bank of Atlanta, Rosensweig specializes in global strategy, global economics and international finance. 404-727-6360, jeff_rosensweig@bus.emory.edu



Is gold the way to go?


With the financial world in crisis and a current of fear sending shockwaves around the world, many ordinary people are wondering what to do with their savings. Beware of ads for gold as an investment, warns Ray Hill, who teaches managerial economics and finance at Emory's Goizueta Business School.

"The last time the price of gold peaked was in 1980," he says. "Inflation was up, the economy was going to hell in a hand-basket, and people were asking, 'What should we do? Buy gold, right?'"

The value of gold today, however, is about half as much as its value in 1980, when adjusted for inflation, Hill says. "Gold may be a smart investment, I don't know. But when somebody asserts that gold is a great investment in a time of crisis, you should be aware that there is nothing in history that confirms that." 404-727-8597, ray_hill@bus.emory.edu



Additional Financial, Economics and Law Experts


Tom Smith - Finance expert and economist Smith, who teaches the practice of finance at the Goizueta Business School, has kept a close eye on the markets and developments in the financial crisis, and says the economy is likely to get worse before it gets better, but urges consumers not to panic. Smith received his doctorate in labor and demography/cultural economics and policy from the University of Illinois at Chicago. 404-727-3605, tom.smith@emory.edu

More from Tom Smith: Rough Economy to Stick Around, With or Without Bailout

Hashem Dezhbakhsh – Economist Dezhbakhsh (pronounced DEZ-bosh) has been following the financial crisis and can comment on the bailout's effect on financial markets and stock market volatility, and the parallels of the current situation with the savings and loan bailout of the 1990s. 404-727-4679,  econhd@emory.edu

More from Hashem Dezhbakhsh: Bailout Mess Echoes S&L Crisis of the 1990s

Essie Maasoumi –  The Arts and Sciences Distinguished Professor of Economics attributes the current financial crisis to the "lack of independence of the Fed, letting immediate interests dominate the outcome, no matter what the long-term consequences." Maasoumi's specialties include economic forecasts and policy, welfare economics, international political economy, labor issues, Middle East economics, financial economics and econometrics. He is the editor of the journal Econometric Reviews. 404-727-9817, emaasou@emory.edu

Frank Alexander - Housing expert and law professor Frank Alexander can comment on credit crunch's effect on the mortgage crisis and residential real estate market. Alexander has had a significant role in advising Congress and state governments on the issues related to vacant and abandoned properties resulting from foreclosures. 404-727-6982,  falexander@law.emory.edu

More from Frank Alexander: Emory's Alexander Asked to Weigh in on Defeated Bailout Bill

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