Economics and Finance: From Theory to Practice to Policy

Watch videos of this symposium

This symposium celebrated the role of MIT's faculty and students in advancing the fields of economics and finance, in putting the latest developments into practice, and in contributing to the design of public policy.

A series of six panels, which included Nobel laureates, policy makers, and academic and industry experts, addressed three broad questions:

• What are the key recent scientific developments and the major unresolved issues of economics and finance?
• What are the central challenges in economic policy?
• How can one assess the contributions of, and limitations of, recent advances in financial economics?

Faculty leads

• Andrew W. Lo, Harris & Harris Group Professor, Sloan School of Management
• James M. Poterba, Mitsui Professor of Economics
• Robert M. Solow, Institute Professor Emeritus, Department of Economics

Organized by MIT’s Department of Economics and the Alfred P. Sloan School of Management.

Read more about this symposium in the news:

MIT News: January 26, 2011

MIT News: January 31, 2011

MIT Sloan Management Review 

90.0 WBUR

Wall Street Journal

Boston Herald

Video archive

January 27, 2011

Opening Remarks

• John S. Reed '61 SM '65, Chairman of the MIT Corporation
• David A. Mindell PhD '96, Chair, MIT150 Steering Committee
• Deborah K. Fitzgerald, Kenan Sahin Dean, MIT School of Humanities, Arts, and Social Sciences

The Evolution of Economic Science: Individual and Firm Behavior

• Moderator: James M. Poterba, Mitsui Professor of Economics, MIT
• Panel: George Akerlof PhD '66, Koshland Professor of Economics, University of California, Berkeley
• Avinash Dixit PhD '68, John J. F. Sherrerd '52 Professor of Economics, Emeritus, Princeton University
• Jerry Hausman, John and Jennie S. MacDonald Professor of Economics, MIT

The Evolution of Economic Science: Macroeconomics, Growth, and Development

• Moderator: Daron Acemoglu, Elizabeth and James Killian Professor of Economics, MIT
• Panel: Peter Diamond PhD '63, MIT Institute Professor
• Esther Duflo PhD '99, Abdul Latif Jameel Professor of Poverty Alleviation and Development Economics, MIT
• Robert E. Hall PhD '67, Robert and Carole McNeil Professor of Economics and Senior Fellow, Hoover Institution, Stanford University
• Robert M. Solow, MIT Institute Professor, Emeritus

Economic Policy Challenges: Macroeconomics and Fiscal Policy

• Moderator: Ricardo Caballero PhD '88, Ford International Professor of Economics and Department Head, MIT
• Panel: Pedro Aspe PhD '78, Co-Chairman, Evercore Partners and Chairman and CEO, Protego
• Olivier Blanchard PhD '77, Class of 1941 Professor of Economics, MIT and Chief Economist, International Monetary Fund
• Alan Blinder PhD '71, Gordon S. Rentschler Memorial Professor of Economics and Public Affairs, Princeton University
• Paul Krugman PhD '77, Professor of Economics and International Affairs, Princeton University
• N. Gregory Mankiw PhD '84, Robert M. Beren Professor of Economics, Harvard University
• Christina Romer PhD '85, Class of 1957–Garff B. Wilson Professor of Economics, University of California, Berkeley

Economic Policy Changes: Microeconomics and Regulation

• Moderator: Nancy L. Rose PhD '85, Charles P. Kindleberger Professor of Applied Economics, MIT
• Panel: Dennis W. Carlton SM '74 PhD '75, Katherine Dusak Miller Professor of Economics, Booth School of Business, University of Chicago
• Mark B. McClellan PhD '93, Leonard D. Schaeffer Chair in Health Policy Studies, Brookings Institution
• Richard Schmalensee '65 PhD '70, Howard W. Johnson Professor of Economics and Management, MIT
• Hal R. Varian '69, Chief Economist, Google

January 28, 2011

Opening Remarks

• David C. Schmittlein, John C. Head III Dean, MIT Sloan School of Management

The Evolution of Financial Technology

• Moderator: Andrew W. Lo, Harris & Harris Group Professor, MIT Sloan School of Management
• Panel: John C. Cox, Nomura Professor of Finance, MIT Sloan School of Management
• Robert C. Merton PhD '70, School of Management Distinguished Professor of Finance, MIT Sloan School of Management
• Stewart C. Myers, Robert C. Merton 1970 Professor of Financial Economics, MIT Sloan School of Management
• Stephen A. Ross, Franco Modigliani Professor of Financial Economics, MIT Sloan School of Management
• Myron Scholes, Frank E. Buck Professor of Finance, Emeritus, Graduate School of Business, Stanford University

Finance in Action

• Moderator: Stewart C. Myers, Robert C. Merton (1970) Professor of Financial Economics, MIT Sloan School of Management
• Panel: Douglas T. Breeden '72, William W. Priest, Jr. Professor of Finance, Fuqua School of Business, Duke University
• Eugene Flood PhD '84, President and CEO, Smith Breeden Associates
• Bennett W. Golub '78 SM '82 PhD '84, Co-Founder and Chief Risk Officer, BlackRock
• Robert A. Jarrow PhD '79, Ronald P. and Susan E. Lynch Professor of Investment Management, Johnson Graduate School of Management, Cornell University
• Judy C. Lewent SM '72, Former Executive Vice President & Chief Financial Officer, Merck & Co., Inc.

Keynote Address: The Future of Finance

• Robert C. Merton PhD '70, School of Management Distinguished Professor of Finance, MIT Sloan School of Management

Thursday, January 27, 2011

Opening remarks
8:45 am

John S. Reed ’61 SM ’65
Chairman of the MIT Corporation

David A. Mindell PhD '96
Chair, MIT150 Steering Committee
Dibner Professor of the History of Engineering and Manufacturing
and of Aeronautics and Astronautics

The Evolution of Economic Science: Individual and Firm Behavior
9am

Moderator
James M. Poterba
Mitsui Professor of Economics, MIT

Panel
George Akerlof PhD ’66
Koshland Professor of Economics, University of California, Berkeley

Avinash Dixit PhD ’68
John J. F. Sherrerd ’52 University Professor of Economics, Emeritus, Princeton University

Jerry A. Hausman
John and Jennie S. MacDonald Professor of Economics, MIT

Oliver Williamson  ’55
Edgar F. Kaiser Professor of Business, Economics, and Law, Emeritus, Haas School of Business, University of California, Berkeley

NB: Professor Williamson's remarks presented by Paul L. Joskow, Elizabeth and James Killian Professor of Economics, Emeritus, MIT

10:30 am - Break

The Evolution of Economic Science: Macroeconomics, Growth, and Development
10:45 am

Moderator
Daron Acemoglu
James Killian Professor of Economics, MIT

Panel
Peter Diamond PhD ’63
MIT Institute Professor

Esther Duflo PhD ’99
Abdul Latif Jameel Professor of Poverty Alleviation
and Development Economics, MIT

Robert E. Hall PhD ’67
Robert and Carole McNeil Professor of Economics and Senior Fellow, Hoover Institution, Stanford University

Robert M. Solow
MIT Institute Professor, Emeritus

12:15 pm - Lunch

Economic Policy Challenges: Macroeconomics and Fiscal Policy
1:15 pm

Welcome

Deborah K. Fitzgerald
Kenan Sahin Dean, MIT School of Humanities, Arts, and Social Sciences

Moderator
Ricardo Caballero PhD '88
Ford Professor of Economics and Department Head, MIT

Panel
Pedro Aspe PhD ’78
Co-Chairman, Evercore Partners and Chairman and CEO, Protego   

Olivier Blanchard PhD ’77
Class of 1941 Professor of Economics, MIT and Chief Economist, International Monetary Fund

Alan Blinder PhD ’71
Gordon S. Rentschler Memorial Professor of Economics
and Public Affairs, Princeton University

Robert J. Gordon '67
Stanley G. Harris Professor of the Social Sciences, Northwestern University

Paul Krugman PhD ’77
Professor of Economics and International Affairs, Princeton University
via telephone

N. Gregory Mankiw PhD ’84
Robert M. Beren Professor of Economics, Harvard University

Christina Romer PhD ’85
Class of 1957-Garff B. Wilson Professor of Economics,
University of California, Berkeley

3:15 pm - Break

Economic Policy Challenges: Microeconomics and Regulation
3:45 pm

Moderator
Nancy L. Rose PhD '85
Charles P. Kindleberger Professor of Applied Economics, MIT

Panel
Dennis W. Carlton SM ’74 PhD ’75
Katherine Dusak Miller Professor of Economics,
Booth School of Business, University of Chicago

Mark B. McClellan PhD ’93
Leonard D. Schaeffer Chair in Health Policy Studies, Brookings Institution

Richard Schmalensee ’65 PhD ’70
Howard W. Johnson Professor of Economics and Management, MIT

Hal R. Varian ’69
Chief Economist, Google

5:15 pm - Adjourn

Friday, January 28, 2011

Opening remarks
8:45 am

David C. Schmittlein
John C Head III Dean, MIT Sloan School of Management 

The Evolution of Financial Technology
9-10:30 am

Moderator
Andrew W. Lo
Harris & Harris Group Professor, MIT Sloan School of Management

Panel
John C. Cox
Nomura Professor of Finance, MIT Sloan School of Management

Robert C. Merton PhD ’70
School of Management Distinguished Professor of Finance,
MIT Sloan School of Management

Stewart C. Myers
Robert C. Merton (1970) Professor of Financial Economics,
MIT Sloan School of Management

Stephen A. Ross
Franco Modigliani Professor of Financial Economics,
MIT Sloan School of Management

Myron S. Scholes
Frank E. Buck Professor of Finance, Emeritus,
Graduate School of Business, Stanford University

10:30 am - Break

Finance in Action
10:45 am-12:15 pm

Moderator
Stewart C. Myers
Robert C. Merton (1970) Professor of Financial Economics, MIT Sloan School of Management

Panel
Douglas T. Breeden ’72
William W. Priest, Jr. Professor of Finance, Fuqua School of Business, Duke University

Eugene Flood PhD ’84
President and CEO, Smith Breeden Associates

Bennett W. Golub ’78 SM ’82 PhD ’84
Co-Founder and Chief Risk Officer, BlackRock

Robert A. Jarrow PhD ’79
Ronald P. and Susan E. Lynch Professor of Investment Management, The Johnson School, Cornell University

Judy C. Lewent SM ’72
Former Executive Vice President & Chief Financial Officer,
Merck & Co., Inc.

Lunch and Keynote Address: The Future of Finance
12:15-1:30 pm

Robert C. Merton PhD ’70
School of Management Distinguished Professor of Finance,
MIT Sloan School of Management