Astrology and economic forecasts

The current crisis has once again shown how wrong economic forecasts often are. So why is it such a deeply flawed profession? John Galbraith once said that “The only function of economic forecasting is to make astrology look respectable.” Although many of us are avid readers of economic forecasts issued by the OECD, the IMF, and the EU (the government’s forecasts tend to suffer from a general lack of creditability), it is questionable if our confidence in them is well founded. In my opinion, which is based on my experience, it is not.

Firstly, a large number of economic models try to predict the future by extrapolating the past. The current crisis, like so many others, has highlighted the folly of this method. Such models also predicted in the 1950s that the USSR would become the world’s most powerful economy (its economic growth rate was three times that of the west at the time), and the same was said about Japan (remember the best seller Japan as Number 1, by Harvard Professor Ezra Vogel?), the Asian dragons in the 90s, and now it’s China’s turn. The logic of projecting past growth rates onto the future is an intellectual and economic fallacy, as stated by Paul Krugman in his excellent paper “The Myths of Asia’s Miracle”. 

Details

IE Master in Finance ranked No. 2 worldwide by FT

IE Business School holds the No. 2 position in the Financial Time ranking of Masters in Finance programs.

The IE Master in Finance achieved this result in the pre-experience category with its full-time English-taught program, aimed at young professionals with an international profile. The student body of IE’s Master in Finance program comprises 95% international students from 23 countries, and takes place in Madrid and New York.  It is the first finance program in Spain to be awarded the status of Program Partner by the CFA (Chartered Financial Advisor) Institute, the leading international standard for financial analysts.

Ignacio de la Torre, Director of Masters in Finance at IE Business School says that the finance sector needs specialized profiles with an international focus. “This is exactly what our programs provide, and our graduates work in firms like UBS, Morgan Stanley, Credit Suisse, Waterland and BCG. Emerging economies also offer enormous potential given the rapid development of their capital markets.”

Details

Design thinking – for MBA only!

The IE International MBA starts with an innovative, constantly changing module called LAUNCH. In past edition, students had to play basketball, talk like actors and develop their creative side guided by the Architecture Association of London.

In this year edition, the IE School of Architecture created a workshop related to Design Thinking. Enjoy the video!

Who wants to be an Entrepreneur?

Tomorrow is an exciting day for Entrepreneurs and Investors in Singapore. IE Business Schools and Angels Den jointly organized the first IE – Angels Den Seminar on Entrepreneurship. Here are the details: When? Wednesday, May 25 from 18:00 to 20.45 Where? Pan-Pacific Hotel, Level 1, 7 Raffles Boulevard, Marina Square Registration: IE Event Page As…

Details

IE University || 12 inspiring young minds

2 years ago IE University has created a Junior Advisory Board which serves to provide a worldly and youthful perspective to IE University. IE’s Junior Advisory Board is considered as a part of the IE community, and shows a commitment to excellence and innovation. Board members, though still in High School, are outstanding members of their community and serve as joint representatives of their communities to IE, and also of IE in their communities. Here are the impressions from the 2011 annual board meeting:

This year´s committee comprised of twelve pre-university students, all with an international profile and aged between 15 and 19. They met in Madrid and Segovia to debate the challenges facing university education. The members of the International Junior Advisory Board were selected using IE’s network of 23 international offices in 20 countries, and are from the Czech Republic,  Colombia, India, Jordan, Peru, Romania, Spain, Lesotho and the US.

The talented young members of the Board speak several different languages, are entrepreneurial and top-tier students in a range of disciplines. They are committed to humanistic values and social responsibility. They are international, practical, ambitious and above all they represent a generation which, thanks to its commitment to excellence, innovation, human values and ethics, will not only bring improvements to IE University, but will also serve as leaders in tomorrow’s world.

In their 2011 meeting, the Junior Advisory Board members were asked to think if entrepreneurship can be learnt and what is the role of universities in fostering an entrepreneurial culture. They also discussed how universities can promote diversity and how it can equip students with the tools and skills they need to function in an increasingly competitive global and cosmopolitan market. In an open forum they debated if Social Entrepreneurship has to be a part of a business education and how university sector can engage students in social issues.

Details

IE Entrepreneurs || José María Castillejo: Entertainment motivates

José María Castillejo, IE graduate, is the president of Zinkia Entertainment, a world reference in children’s entertainment, thanks to the extraordinary international success of the happy character Pocoyó, a small boy dressed in blue. Pocoyo, protagonist of a television series, has become a global, multi-platform entertainment brand.

Zinkia was created in 2001 as an audiovisual content producer for TV. Whatare main characteristics today?
Actually, Zinkia wasn’t created as an audiovisual contents producer for TV: Zinkia was created with the idea of being able to create contents that would help change our lives for the better and, in particular, help change our children’s lives for the better; children who were only babies when we created Zinkia.

Your company has become a world reference in children’s entertainment thanks to the extraordinary international success of Pocoyo, a small boy dressed in blue. What are the key factors behind that success, especially bearing in mind the huge number of competitors on the market?
I think that one of the key factors has been staying focused: trying to change our children’s lives, helping them to enjoy themselves and, while they do so, to learn that there are certain values that make human beings different from other living beings and that when we assume those values, they help us to be happy: friendship, loyalty, sincerity, hard work… And all while they are discovering new things about the world. The world that opens itself up to them and that they look at under a light of never-ending curiosity. I have no doubts that keeping our focus on that has helped us to be successful. Then ther e is also the talent of the people w e have worked with, the quality of the designs, contents and technological developments that have been made to represent the world of Pocoyo as we wanted.

Details

MBA students participate in IE Consulting Project with Unilever

To mark the conclusion of the IE Consulting Project (IECP), sixteen International MBA students recently presented their final projects to senior management of Unilever.  The IECP is the latest example of the experiential learning opportunities available at IE Business School, which provides students with real world experience in identifying and solving problems in management.  “Not…

Details

IE Event || Marketing the Subconscious

“The Art of Seduction ― Marketing the Subconscious” will explore the history and theory of appealing emotionally to potential clients and customers, and discuss ways to do so.  The seminar, hosted by Seoul Global Center, will feature a guest talk from Prof. William Davila, Associate Professor of marketing at Madrid’s IE Business School, which specializes in entrepreneurship,…

Details