Finance Matters

Finance Matters

Finance Matters: The MIT Sloan Finance Group Blog

Finance Matters is the MIT Sloan Finance Group’s platform for sharing the latest on Finance faculty research, perspectives on financial industry news, MIT Sloan finance-related events, and will feature guest posts from our faculty, students, alumni, and affiliates.

Welcome to Finance Matters

Posted by MIT Sloan Finance Group on October 17, 2012

MIT is often referred to as home to the “pioneers of modern finance,” including luminaries such as Fischer Black, John Cox, Robert Merton, Franco Modigliani, Stewart Myers, Stephen Ross, Paul Samuelson and Myron Scholes. With traditions deeply rooted in finance, today the MIT Sloan Finance Group continues its commitment to training the next generation of finance professionals. Through new programs, growing course offerings, and a commitment to groundbreaking research and policy analysis, MIT remains a leader in financial thought and…
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MIT Sloan Investment Conference 2015: Investing in a Brave New World

Posted by MIT Sloan Finance Group on February 18, 2015

This Friday will see the annual MIT Sloan Investment Conference take place, after months of dedicated organization and careful planning. Part of the Sloan finance tradition, this student-run conference brings together influential individuals in the finance and investment world today to debate and discuss pressing issues in their areas of expertise. We have themed the conference “Investing in a Brave New World”. More than six years after the financial crisis, the investment world today has fundamentally changed from the one…
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Evidence of the Financial Accelerator using Corn Fields

Posted by Rajkamal Iyer on February 9, 2015

The role of financial frictions in amplifying and propagating economic shocks has received significant attention in explaining fluctuations over the business cycle. Financial frictions introduce a wedge between the cost of external finance and the opportunity cost of internal funds. This implies that the strength of firms’ balance sheets will affect the manner in which their investment activity reacts to economic shocks. Current firm investment affects future balance sheet strength, creating a dynamic feedback loop that propagates economic shocks over…
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Unfunded State and Local Healthcare Benefits, the Elephant in the Room?

Posted by Deborah Lucas on December 17, 2014

Last week Bob Pozen, a Visiting Senior Lecturer here at MIT Sloan with a distinguished background in government, business and education gave an eye-opening lunch talk. The topic was “Other Post-Employment Benefits” or OPEBs—which is accounting jargon for the liabilities governments incur for retiree healthcare. Here’s what he found: “The 30 largest American cities had over $100 BILLION in retiree healthcare deficits in 2013, as estimated by the Pew Charitable Trust. In that year, New York City showed the most…
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Opinions expressed in this blog are that of individuals and do not reflect the general opinion of Massachusetts Institute of Technology and MIT Sloan.