SEMI-MONTHLY NATIONAL AND INTERNATIONAL TOP NEWS COVERAGE FOR FEBRUARY 15- MARCH 1, 2015

U.S. MEDIA

Media bias? Not such a big deal, economist says

Boston Globe - Feb 18, 2015
- The American Economics Association awarded its most recent John Bates Clark Medal, which honors the work of an economist under the age of 40, to Matthew Gentzkow, a Harvard-trained economist now on the faculty at the University of Chicago. As an article by economist Andrei Shleifer in the current issue of the Journal of Economic Perspectives explains, Gentzkow is credited with almost single-handedly creating the sub-field of media economics.

How Mortgage Fraud Made the Financial Crisis Worse

New York Times - Feb 12, 2015 - The paper by the economists Atif Mian of Princeton University and Amir Sufi of the University of Chicago focuses on a particular kind of fraud: the practice of overstating a borrower’s income in order to obtain a larger loan.

When Job Hunting, Make Sure Your Voice Is Heard

New York Magazine - Feb 23, 2015 - For the study, Juliana Schroeder and Nicholas Epley of Chicago's Booth School of Business videoed a bunch of MBA students giving elevator pitches for their ideal jobs. Sometimes, the students gave pitches they'd designed to be presented in-person, and sometimes they read aloud pitches they'd adapted from a written form. (Research also covered by Newser, KVUE.com, WSMD-FM.)

Want to wow an interviewer? Voicemail follow ups beat email

Fortune - Mar 03, 2015
- That's according to a new study called "The Sound of Intellect: Speech Reveals a Thoughtful Mind, Increasing a Job Candidate's Appeal" by Nicholas Epley, a professor at the University of Chicago's Booth School of Business, and PhD candidate Juliana Schroeder.

Want To Look Smarter? Stop Sending Emails And Speak Like A Human

The Huffington Post - Feb 27, 2015 - “If you want to be seen as thoughtful and intelligent and someone who has something going on between their ears, it’s important quite literally to be heard,” Booth professor Nick Epley told The Huffington Post.

Your Job Qualifications Sound Better than They Look

ABC News Radio - Feb 24, 2015 - Researchers from the University of Chicago Booth School of Business say that in a series of experiences, hypothetical employers and recruiters came away more impressed with an applicant’s qualifications when they heard the pitch. (Research also featured on Bustle, Science World Report, AOL Jobs. Article also appeared on the website of several other radio stations.)

The Upside of Waiting in Line

New York Times - Feb 19, 2015 - Some of these positive effects of waiting have been studied by Professors Xianchi Dai of the Chinese University of Hong Kong and Ayelet Fishbach of the University of Chicago in their paper "When Waiting to Choose Increases Patience."

Lenders Step Up Financing to Subprime Borrowers

Wall Street Journal - Feb 18, 2015 - Others are more concerned. "It's good while the party lasts, but it’s exposing exactly the kinds of people to a negative economic shock that you don’t want to expose," said Amir Sufi, a University of Chicago finance professor. Subprime borrowers, who pay much higher interest rates on loans than customers with good credit scores, are more prone to missing payments in periods of economic distress, said Mr. Sufi.

Fed Faces Foreign-Policy Dilemma on Rates

Wall Street Journal - Mar 01, 2015 - Recent research from University of Chicago economists Martin Beraja, Erik Hurst and Juan Ospina shows that areas of the U.S. that saw the biggest increases in unemployment also saw prices for nontradable goods—items that include a lot of local costs—come under pressure while tradable goods prices held up better. If that happened at the local level, perhaps it also did at the national level too, with import costs buoying prices overall.

Key Uncertainty Is How Fast Fed Raises Rates: Kroszner

Bloomberg TV - Feb 24, 2015
- Chicago Booth School Professor of Economics Randall Kroszner discusses Fed policy. He speaks on "In The Loop."

How Do Central Banks Handle Geopolitical Risks?

Bloomberg - Feb 20, 2015
- University of Chicago Booth School Professor Randall Kroszner speaks with Francine Lacqua about market and business reaction to Ukraine and Greece and how central banks approach geopolitical risks. He speaks on "The Pulse."

Has Greece's 'Lehman moment' finally arrived?

CNBC - Feb 20, 2015 - Randy Kroszner, a former U.S. Federal Reserve governor and the professor of economics at the University of Chicago Booth School of Business, agreed that there were comparisons between the two events.

Greece Puts ECB in Political Crosshairs: Randall Kroszner

Bloomberg - Feb 20, 2015 - University of Chicago Booth School Professor Randall Kroszner speaks with Francine Lacqua about how the United States views the Greek debt negotiations and the potential for the situation to politicize the European Central Bank. He speaks on "The Pulse."

Lehman couldn't be saved; Greece can: Ex-Fed governor

CNBC - Feb 20, 2015 - Ex-Fed governor Randy Kroszner, professor of economics at the University of Chicago Booth School of Business and former Federal Reserve governor,

This is the real reason Greece has a massive tax-evasion problem

Yahoo Finance - Feb 25, 2015 - Despite recent headlines suggesting the super-wealthy were the main offenders, there is an amazing academic paper (by Margarita Tsoutsoura, University of Chicago Booth School of Business and her colleagues) that shows just how much Greece's upper-middle-class professionals are dodging taxes. Article also appeared in Yahoo Finance India and Business Insider, Indonesia.

Stanley Fischer Suggests Fed Will Give Less Guidance

New York Times - Feb 27, 2015 - "It seems to me that you unnecessarily constrain yourself," Mr. Fischer said of such guidance during a panel discussion at an annual monetary policy conference sponsored by the University of Chicago Booth School of Business. "There's no good reason that I can see for us to telegraph every action that we have to take."

Bloomberg Surveillance: Feb. 27, 2015 - Collender, Cecchetti

Bloomberg Radio - Feb 27, 2015 - Bloomberg Surveillance with Tom Keene and Michael McKee. Guests: Chuck Todd, Chief White House Correspondent, NBC, interviews Stanley E. Collender, Executive Vice President/National Director of Financial Communications for Qorvis, on homeland security; Stephen Cecchetti, Former Head of the Monetary & Economic Department, Bank for International Settlements. Live from the Chicago Booth School Monetary Policy Conference at the Hyatt Regency.

Bloomberg Surveillance: Feb. 27, 2015 - Hamilton, Hatzius

Bloomberg Radio - Feb 27, 2015 - Bloomberg Surveillance with Tom Keene and Michael McKee. Guests: James D Hamilton, Professor of Economics, University of California, live from the Chicago Booth Monetary Policy Conference at the Hyatt Regency. Jan Hatzius, Chief Economist, Goldman Sachs Group Inc. Ahead of the Chicago Booth School Monetary Policy Forum.

UC's Hamilton Says Greek Debt 'Should Be Forgiven' (Audio)

Bloomberg Radio - Feb 27, 2015 - James D. Hamilton, a professor of economics at the University of California in San Diego, says, "I don't see how Greece will repay its debts." Steel talks with Bloomberg's Tom Keene and Michael McKee from the Chicago Booth Monetary Policy Conference at the Hyatt Regency in New York on Bloomberg Radio’s "Bloomberg Surveillance."

Goldman’s Hatzius Sees Reason for Fed Delay (Audio)

Bloomberg Radio - Feb 27, 2015 -Jan Hatzius, chief economist at Goldman Sachs Group Inc., says there is “a good case for delaying liftoff” from the Federal Reserve beyond September of this year. Hatzius talks with Bloomberg’s Tom Keene and Michael McKee from the Chicago Booth Monetary Policy Conference at the Hyatt Regency in New York on Bloomberg Radio’s "Bloomberg Surveillance."

Fed Ushers in a New Era of Uncertainty on Rates

Wall Street Journal - Mar 01, 2015 - The longer-run rate outlook was the center of discussion Friday at a monetary-policy conference sponsored by the University of Chicago Booth School of Business. Fed Vice Chairman Stanley Fischer said there that market expectations might move—perhaps abruptly—closer to the Fed’s when the central bank starts lifting rates. A first increase "will add to the credibility of what we’re saying," he said in a not-so-subtle warning to investors who doubt the Fed's plans.

Fischer Says Fed Sees Rate Rise ‘Sometime This Year’ 

The Wall Street Journal (blog) - Feb 27, 2015 - The Fed’s Vice Chairman Stanley Fischer said Friday, offering little more in the way of clues as to the exact timing or his personal preference. “The FOMC and market participants anticipate that the federal funds rate will be raised sometime this year,” he said at a monetary-policy conference sponsored by the University of Chicago’s Booth School of Business.

Paper Argues For Fed To Hold Off On Rate Hikes Until Last Minute

The Wall Street Journal (blog) - Feb 27, 2015 - Federal Reserve officials who want to boost short-term interest rates soon warn that if the central bank waits too long, rate increases will ultimately have to be more aggressive and potentially disruptive to the economy. But according to a new paper to be presented at a University of Chicago Booth School of Business conference Friday, the latter path is the one the Fed should follow.

Fed’s Dudley: Markets May Force a More Aggressive Rate Hike Cycle

The Wall Street Journal (blog) - Feb 27, 2015 - Mr. Dudley’s comments came from the text of a speech prepared for an event held in New York by the University of Chicago Booth School of Business. The central banker was discussing a paper presented at the event that argued uncertainties about monetary policy’s relationship with the economy argue in favor of holding off on interest rate increases for as long as possible.

Bank of Japan’s Nakaso Optimistic on Hitting 2% Inflation Target

The Wall Street Journal - Feb 27, 2015
- “Green shoots can increasingly be observed with regard to wage and inflationary expectations,” Mr. Nakaso said, speaking at a monetary policy forum in New York sponsored by the University of Chicago Booth School of Business.

After Yellen's Congressional Turn, Fed Officials Beat the Rate-Hike Drum

Wall Street Journal - Feb 27, 2015 - "We are getting closer" to rate rises, Fed Vice Chairman Stanley Fischer said Friday at a conference held in New York by the University of Chicago Booth School of Business.

Grand Central: Governor Zhou Reverses Tactic as China Outlook Worsens

Wall Street Journal - Mar 02, 2015 - Fed Should Hold Off On Rate Hikes Until Last Minute. Fed officials who want to boost short-term interest rates soon warn that if the central bank waits too long, rate increases will ultimately have to be more aggressive and potentially disruptive to the economy. But according to a new paper presented at a University of Chicago Booth School of Business conference Friday, the latter path is the one the Fed should follow.

Dudley calls for rate-hike caution while Mester suggests quicker move

MarketWatch - Feb 27, 2015 - New York Fed President William Dudley said that the risks in lifting interest rates too soon are higher than the risks of doing so too late. In a speech to the Initiative on Global Markets conference sponsored by the University of Chicago Booth School of Business, Dudley said uncertainty about this recovery argues for caution.

Fed won't be predictable after lifting rates, Fischer says

MarketWatch - Feb 27, 2015 - "I know of no plans of following a deterministic path to raise rates, I don't believe it will happen," Fed Vice Chair Stanley Fischer said at a conference sponsored by the University of Chicago Booth School of Business. Also in Fidelity and Morningstar.

Fischer Says Fed Bond Buying Provided ‘Meaningful Stimulus’

Bloomberg - Feb 27, 2015 - “Despite these potential costs, we think that asset purchases have had a meaningful effect in promoting economic recovery and helping to keep inflation closer to the FOMC’s 2 percent goal than would otherwise have been the case,” Fischer said at the 2015 U.S. Monetary Policy Forum held by the University of Chicago Booth School of Business.

WRAPUP 1-Dudley, top U.S. economists urge later Fed rate hike

CNBC - Feb 27, 2015 - The risks of hiking rates "a bit early are higher than the risks of lifting off a bit late," he told a forum hosted by the University of Chicago's Booth School of Business. "This argues for a more inertial approach to policy." Also in Reuters.

Fed urged to wait before steeper U.S. rate hikes

CNBC - Feb 27, 2015 - Two top Fed policymakers were set to critique the 80-page paper at a forum hosted by the University of Chicago's Booth School of Business, attended among others by Fed Vice Chairman Stanley Fischer and the second-in-commands at the European Central Bank and the Bank of Japan. Also in Reuters.

Smothered by a Boom in Banking

New York Times - Feb 28, 2015 - Also questioning the dominance of finance in our society is Luigi Zingales, professor of entrepreneurship and finance at the University of Chicago Booth School of Business. In his 2012 book, "A Capitalism for the People," he wrote that the financial sector, "thanks to its resources and cleverness, has increasingly been able to rig the rules to its own advantage."

A Problem for a Fed Theory on Wages
 
Wall Street Journal - Mar 02, 2015 - A Heard on the Street column Monday pointed to research by University of Chicago economists Martin Beraja, Erik Hurst and Juan Ospina showing that areas of the U.S. that had the biggest increases in unemployment in the recession and its aftermath also tended to see prices for nontradable goods—items that include a lot of local costs—come under the most pressure while tradable goods prices held up better. To do this, the economists constructed local price indexes using a Nielsen database of prices at 40,000 individual stores.

What Clever Robots Mean for Jobs

The Wall Street Journal - Feb 24, 2015 - Experts rethink belief that tech always lifts employment as machines take on skills once thought uniquely human. A recent survey of top economists by the University of Chicago found 88% either agreed or strongly agreed that automation has never historically led to reduced U.S. employment.

Women are underrepresented in top MBA programs, U-Md. aims to solve that

Washington Post - Feb 19, 2015 - And a 2009 study of MBA graduates from the University of Chicago’s Booth School of Business by the National Bureau of Economics Research found that a woman’s career slows down and their pay takes a hit when they become mothers. (References research from Marianne Bertrand.)

These Are the Econ Blogs You Need to Read

Bloomberg View - Feb 18, 2015 - The Grumpy Economist, by John Cochrane: Famed University of Chicago financial economist Cochrane is grumpy, but not as grumpy as the title of his blog would imply. He blogs about financial economics and macroeconomics, and also about public policy. His views on theory are eclectic, and he is another blogger known for writing equations in his blog posts (reading Cochrane posts can easily inspire academic paper ideas). On policy, he is a rock-ribbed conservative.

Knock-Off Economics

U.S. News and World Report - Feb 23, 2015 - The Initiative on Global Markets at the University of Chicago Booth School of Business polls an ideologically diverse group of highly respected economists on these kinds of questions. The panel was asked whether a federal income tax cut “would raise taxable income enough so that the annual total tax revenue would be higher within five years than without the tax cut.” When the responses were weighted by each expert’s confidence, 96 percent answered no; the remaining four percent were uncertain.

Essential MOOCs In Business For March

Poets and Quants - Feb 23, 2015 - Credentials: John Cochrane teaches asset pricing and economics courses at the Ph.D. level (and an advanced investment course in the MBA program) at the University of Chicago’s Booth School of Business. A Ph.D. from the University of California-Berkeley, Cochrane is best known for Asset Pricing, one of the premier textbooks in the field. Outside of Booth – where he has taught over 20 years – Cochrane is a research associate at the National Bureau of Economic Research, a former President of the American Finance Association, and a former editor of Journal of Political Economy. He is also the recipient of Booth’s Faculty Excellence Award for MBA Teaching.

A Bit Of Uptown Funk At Chicago Booth

Poets and Quants - Feb 24, 2015 - When the latest crop of MBA admits came to the University of Chicago’s Booth School of Business for admit weekend this month, they were treated to a surprise flash mob dance by nearly 100 current students. The dancing started on the upper reaches of the Winter Garden and then reached the floor.

LuminAID becomes latest Chicago company to get 'Shark Tank' funding

Chicago Tribune - Feb 23, 2015 - During a viewing party Friday night at the University of Chicago Booth School of Business' Gleacher Center, Stork and Sreshta said they felt Cuban was most complementary to their business. (Andrea Sreshta is a Chicago Booth student.)

Chicago Rallies Around Cleantech Women in the Shark Tank

The Huffington Post (blog) - Feb 26, 2015 - I recently had the great honor of celebrating the success of LuminAID, a Chicago-based cleantech company that produces solar-powered inflatable lights, on ABC's Shark Tank with a packed room of friends and colleagues at the University of Chicago Booth School of Business.


MEDIA OUTSIDE THE U.S.

Can violence be moral?

Guardian - Feb 28, 2015 - Dave Nussbaum is adjunct assistant professor of Behavioral Science at the Booth School of Business at the University of Chicago and the editor of Character and Context, the blog for the Society of Personality and Social Psychology.

Meet India’s old-style central banker

Financial Times - Feb 24, 2015
- Raghuram Rajan, the governor of the Reserve Bank of India, is what most central bankers used to be — an independent presence committed to price stability, a sound currency and disciplined fiscal spending, rather than simply functioning as a cheerleader for asset price inflation.

Forget the CV, your VOICE can could land your dream job, study finds

Daily Mail - Feb 20, 2015 - The new study by University of Chicago Booth School of Business Professor Nicholas Epley and Ph.D. candidate Juliana Schroeder also found the addition of video did not influence evaluations beyond hearing the candidate's voice, the researchers note. (Research also covered by City A.M., Business Insider Australia.)

Use your voice to get the dream job

The Times of India - Feb 22, 2015 - "In addition to communicating the contents of one's mind, like specific thoughts and beliefs, a person's speech conveys their fundamental capacity to think - the capacity for reasoning, thoughtfulness and intellect," said Nicholas Epley, professor at University of Chicago Booth School of Business. (Research also covered by Economic Times, Business Standard, The Tribune and more.)

Campus life sparks start-up enthusiasm

Financial Times - Mar 01, 2015
- Sinuhe Arroyo, a Chicago Booth Executive MBA graduate arrived at business school with the concept for what later became Taiger, a semantic software business that enables searches and data matches based on word patterns.

Loans to US subprime borrowers highest since start of GFC

The Australian - Feb 19, 2015 - "It's good while the party lasts, but it's exposing exactly the kinds of people to a negative economic shock that you don't want to expose," said Amir Sufi, a University of Chicago finance professor.

Greece: How did it get to the precipice?

The Globe and Mail - Feb 18, 2015 - At that point things become murky. Some commentators, such as John Cochrane, a professor of finance at the University of Chicago, have suggested that Greece could stay in the euro zone – there’s no legal mechanism for expelling it – and issue IOUs against its future tax revenue. This would create a parallel currency that would still be tied to the euro but would be free of the European Central Bank.

How annuities can gold-plate a silver pension

The Globe and Mail - Feb 20, 2015 - Finance professors struggle to understand numbers like this. "Rational-choice theory predicts that at the onset of retirement, households will find annuities attractive because they address the risk of outliving one's income," says a 2011 paper by Alessandro Previtero of the University of Western Ontario's Richard Ivey School of Business, Shlomo Benartzi of the University of California at Los Angeles and Richard Thaler of the University of Chicago’s Booth School of Business. "But relatively few of those facing retirement choose to annuitize a substantial portion of their wealth."

Getting targeted promotions right

Business Standard - Mar 02, 2015 - According to a study conducted by professor Pradeep Chintagunta, Chicago Booth School of Business, titled 'Effects of targeted promotions', targeted promotion can lead to 37.2 per cent increase in consumer purchases during the promotion window. However, 90 per cent of these gains are not through redemption of the offers.


ALUMNI

Howard Marks: The luckiest moment in my career was when I turned down a job at Lehman Brothers

Business Insider - Mar 03, 2015 - When Howard Marks graduated from the Booth School of Business of the University of Chicago, he was turned down for the one job he really wanted. That, he said, was the luckiest moment of his career. The firm that turned him down was Lehman Brothers. (Finances.com also wrote about Marks.)