IE launches Trading Room for Finance assignments

This week IE has inaugurated its Trading Room to better address market related assignments such as Portfolio Management, Investment Game, Fixed Income, Derivatives, Equity/Asset Valuation, Financial Programming, Equity Research, FX Markets. Equipped with Bloomberg, FactSet, WONDA, EVA Dimensions, Thompson, Matlab, Reuteurs, TTR & Zoologic and other technologies, this facility has one of the top collection of analytical tools…

Details

Get the IE blended learning methodology visualized

There are many “online learning models” named online programs, distance-learning programs, internet-facilitated programs. IE’s innovative blended education format, however, combines the best techniques of traditional face-to-face education with technology-supported online interactive learning, making it a world-class learning experience recognized by international media and by highly satisfied alumni. Check this out and let us know if…

Details

IE Finance Day

Luis Isasi, President of Morgan Stanley in Spain and Vice President of Morgan Stanley Europe took part in the IE Finance day held at IE Business School on September 22, where he examined the role of education in the finance sector. Participants in the event included Ignacio de la Torre, Director of IE Business School…

Details

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