Hello. Jin Mok here. This week, I’d like to continue my brief introduction of brilliant economists in current era. Dr. NourielRoubini, he is as cynical as Mr. Krugman and has an impeccable knowledge of global economic perspective. He became well recognized since he predicted the collapse of the U.S. housing market and the following global recession in 2008. His constant and pessimistic point of economic view provided him nicknames such as, ‘Dr. Doom’ and ‘Permabear(Permanent Bearish)’ in the media.
A son of Iranian Jewish family, Roubini was born in Turkey and raised mostly in Italy before he attended Harvard University where he earned his Ph.D. in economics. He had worked as a practicing economist at International Monetary Fund (IMF), and Federal Reserve Bank (FRB), World Bank, and Bank of Israel. Currently he teaches at New York University.
In 1990s, he was interested in the emerging economies and studied the collapse of local economies, which he concluded the fact that countries literally went broke due to the large current account deficits financed by loans from other countries. His analysis backed by historical approach convinced himself of that U.S. economy is likely to be the next to collapse as early as 2004. From his article in 2006, ‘Why Central Banks Should Burst Bubbles’, he argued that monetary policy should respond to asset prices even when there is uncertainty about the existence and extension of an asset bubble. He concluded that ‘responding to inflation bubbles – not just to bursting ones – could help avoid distorting economic and investment decisions.’ In order to so, he noted that government should respond to asset bubbles in a cautious and moderate matter.
His fair warnings on asset bubbles realized as a tremendous meltdown of U.S. housing market and led to the economic recession in the long haul. As his accurate prediction earned his reputation on global economic perspectives, he became a key figure of economic debate on global economy and central bank governors and finance ministers among Europe and Asia are eager to hold meetings with him.
He also wrote several books including. Crisis Economics: A Crash Course in the Future of Finance, Bailouts or Bail-ins? Responding to Financial Crises in Emerging Economies. Also he founded his own economic consulting firm, Roubini Global Economics(RGE).
Related Links :
Roubini Global Economics
Why Central Banks Should Burst Bubbles by Roubini(PDF)