Hubert Fromlet: Speech at the Transatlantic Consortium Colloquium
29 May 2009 | Posted By: JIBS Stories
Reforming the International Financial System by Regulation or Collaborative Arrangements?
Speech at the Transatlantic Consortium Colloquium ”Repositioning Europe and America for Growth”
Jönköping, May 29, 2009
Summary
¤ Generally speaking, the main impediments to well-working regulations and collaborative agreements come from human behavior (psychology). The current global financial and economic crisis can to a great extent be attributed to phenomena like greed, abuse of incentives, performance pressure (“angst”), overconfidence, neglect of historical experience, etc. Without improved research / interest for behavioral finance and understanding of this exciting scientific orientation, financial regulations will be continually limited in their efficiency. The “homo oeconomicus” has disappeared from global financial markets.
¤ Another important step forward is the recognition that regulations should be completely designed for giving the right incentives to players on financial markets. “Perverse incentive structures” – as Rajan calls one of the main characteristics of the current crisis – should not exist anymore in the future regulatory framework.
¤ Collaborative agreements make sense in certain cases, for example, on an international basis between public institutions. History of financial markets, however, has demonstrated many times that collaborative agreements between banks and public institutions – according to their design – many times cannot work as a powerful instrument for a long time.
¤ Instead, it would make sense to raise the status of collaborative agreements. This could be achieved by including certain agreements as conditions for “good corporate governance”. Such a change could be made efficient by demanding comments from banks on certain collaborative rules they should follow carefully on a regularly basis in their quarterly or annual reports. In other words: Much more pressure should be put on banks’ performance in corporate governance. And the press should write more about it.
¤ Whatever regulatory or collaborative changes we are talking about, one extremely important precondition for – hopefully – (somewhat) declining future financial risks should be mentioned particularly: increased transparency, demanded by regulators and central banks. This need cannot be stressed sufficiently. Innovations in the past such as Structured Investment Vehicles (SIVs) and conduits must be made much more transparent than has been the case in recent years – but the quality of credits must also be made more transparent. Supervision should become much more active in this respect. By the way China should join the path to increased financial transparency as well – as it underwrote this spring in the communiqué of the London G20-summit.
I would finally like to quote Axel Leijonhufvud who recently said: “If we could eliminate the next crisis, we would not discuss these things so much.”
He may be right. But isn’t it worthwhile to try to postpone the next crisis or to make it milder than the current financial earthquake?
Read more about the conference
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China today and JIBS in August
27 May 2009 | Posted By: Maria Markenroth
Ok, let me start from my background.
I come from a city called Hangzhou, which locates on south east of China, 80 min to Shanghai by train. Like Jönköping, there is also a lake in Hangzhou called Westlake, which is so beautiful that it boosts Hangzhou a fame of heaven! Pick any Chinese, I’m sure they know Westlake and Hangzhou.
I’m now working at State Street, which is the world’s leading provider of financial services to institutional investors with the headcounter in Boston. It is one of the nine financial services that got support from Bush government last year. It’s an international company and has offices worldwide. Unfortunately none in Sweden.
Thanks to its globalization, I have got the chance to visit U.S.A and Hongkong during the three years and built relationship with people from various countries. It’s a great experience working at a big company, but I find that I don’t fit the serious atmosphere of the financial field. I’m a Pisces. I’m too romantic for finance. Entertainment fields would fit me more. When I searched schools, I found JIBS. I like your internationalism and the major Economics and Management of Arts is absolutely right.
I submitted residence permit last week and hope I get it soon. So I can plan a vacation to Slovenia before studying at JIBS. Since the health insurance doesn’t cover dental, I’ll be having four wisdom tooth extractions, one every two weeks. So it would totally take 8 weeks. It’s the most special preparation before the journey I have had. Hope I can remain wise without the wisdom teeth.
Jie
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Greetings from Bulgaria
25 May 2009 | Posted By: Maria Markenroth
Hello everybody! My name is Plamen Penchev and I am from Bulgaria. I will join JIBS this fall, Master in Innovation and Business Creation.
I have graduated an English Language High School in my home city Ruse, situated on the Danube river in Northern Bulgaria. Later on I was admitted in the University of Applied Sciences Stralsund, Germany, the degree course Bachelor in Business Administration, conducted in English language. During my studies I also had the chance to spend one academic year in the USA, Michigan, as an exchange student, Ferris State University. This was an excellent possibility for me not only to maximize my English language skills, but also to experience the North American higher education system, culture and lifestyle, to see many things from another perspective.
My practical experience consists mainly of my work as a Hotel Manager of the river-cruising passenger ship “Elegant Lady”, sailing throughout the European waterways – from the Danube Delta on Black Sea to the canals in the Netherlands. In short, I was in charge of the hotel department – making sure that the work was going smoothly and the desired results were achieved – a first-class tourist product.
However, at a certain point of time I reached my career maximum on the ship and realized that in order to enjoy a really challenging and rewarding international career, I must undertake the next academic step. I am determined to pursue further progress and development in my personal and professional life and probably the most important part of this is a world-class Master Degree from a truly reputable institution – that is why I have applied exactly for the Master in Innovation and Business Creation at JIBS.
I am sure that the Master in Innovation and Business Creation at JIBS will not only significantly deepen my knowledge in all the aspects related to innovation management and entrepreneurship, but will also expand my social competences and the ability to see the “big picture”. Moreover, I have no doubt that this premium Master program will serve as a solid base and priceless preparation for the real business world, an experience for life.
Right now, probably as all my future co-students :) , I am in a process of preparation for leaving to JIBS. Trying to find the best answers to questions such as “how actually to travel? , what abbout the luggage? – flying and sending it there, or taking everything with me and catching a bus or train? , health insurance? , banking/financial issues? , accomodation? – even though we know that luckily for us it is guaranteed, I bet everyone is curious what exactly will it be :)
At the end my friends I would like to say that I am really looking forward to comming to JIBS and having a wonderful and unforgettable experience. And of course, meeting with many other incredible people there, from all over the world. I have no doubt that it will be extremely beneficial for us in any aspect. And you, prospective students as me, don’t hesitate to make the right choice ;) And also, join the blog at JIBS and tell us more about you.
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From Moldova to JIBS
20 May 2009 | Posted By: JIBS Stories
Hi,
My name is Corina Budianschi and I am from Moldova. This Spring I received the wonderful news that I was accepted at JIBS for the Bachelor Programme in International management. I am looking forward to begin my studies at JIBS.
In Moldova I am student as well, this summer I will complete my first year in International Economic Relations. Having lived in Moldova all my life, I decided that I wanted a change and I always liked the Scandinavian countries, so I thought that Sweden would be a very interesting place. One of the reasons why I chose JIBS is because it is the most international business school in Sweden and it will be interesting to interact with people from all over the world. Also I spoke to a student at JIBS who is also from Moldova and he gave me a really good feedback, so I can’t wait to get started in Jonkoping.
Right now I’m preparing all the documents for the visa. It is a very long and painstaking process especially because we don’t have a Swedish Embassy in Moldova, and to apply for the visa I have to go to Romania, but for that I need another visa, so it’s a little bit complicated.
For everyone who doesn’t know much about Moldova, I encourage you to visit this country, because it’s a small but nice place with its peculiarities and its specific customs.
That’s it for now,
Best regards, Corina
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JIBS ranks ninth in Entrepreneurship Research, fourth in Family Business worldwide
19 May 2009 | Posted By: Kristina Hugander
In a ranking of publications of entrepreneurship research 1995-2006, Jönköping International Business School (JIBS) ranks ninth globally and third in Europe. In a ranking of publications of family business research 2001-2007, JIBS ranks fourth globally and first in Europe.
Professor Clas Wahlbin has written a summary of the research achievements during the last decade. Read his article recently published in the Jönköping University journal here (pdf).
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