UNAIR NEWS Thousand of academicians of 51动漫, practitioners and policy makers attended a public lecture of 2003 Nobel Laureate for Economics, Prof. Robert Fry Engle III. It was held in Airlangga Convention Center Campus C UNAIR, Monday, February 20.
During the occasion, UNAIR Rector Prof. Dr. M. Nasih, S.E., M.T., Ak., awarded an honorary degree to the lecturer and researcher of Stern School of Business, New York University. Engle is the first Nobel laureate awarded an honorary degree by UNAIR.
During interview, Nasih said that said that this honorary degree is awarded as an appreciation to Prof. Engle who has made major contributions in the development of science especially in Economics.
淲e are awarding this honorary degree to Professor Engle who has made major contributions to science development, especially for developing an method which can save a country from economic crisis, said Nasih.
The method meant was about economic volatility developed by Engle and his partner Professor Clive W.J. Granger of University of California San Diego (UCSD). With this method, researchers and practitioners can predict economic condition, especially the finance based on time series.
In presence of the guests and attendees, Engle delivered a lecture about 淭he Prospects for Global Financial Stability. He explained that volatility happens in some countries in the world.
According to Engle, the financial risk should be eliminated as market will not work if there is no risk. But, financial institutions should be aware of any systemic risks.
“Failure happens when institutions fail to do their jobs and affected the real economic sector, said Engle.
To avoid volatility, Engle recommends the government to make sure that the institutions have what it takes to deal with any crises. Furthermore, the state should also have capital cushion to save the finance when a crisis hits.
Hopefully, if systemic financial crisis can be avoided, the path to peace opened even wider.
Author: Defrina Sukma S.
Editor: Nuri Hermawan
