Finn E. Kydland interview published as the world's central banks move to influence expectations about future policy.
Zurich, 12 November 2015 - UBS released a newly commissioned interview with Finn E. Kydland, Nobel Laureate for Economics 2004. The interview is the second in the recently launched 'Nobel Perspectives' series, ubs.com/nobel, a digital platform that will feature around 40 filmed interviews with Nobel Laureates in Economics.
The interview with Kydland focuses on an exploration of what makes good policy. Finn E. Kyland and his research partner Edward C. Prescott broke new ground by showing that individuals' expectations of policy changes were affecting economies. Their work on time consistency, changing expectations over time and the implications of that, is credited with shaping the way central banking works in modern economies and led to the proliferation of independent central banks. The release coincides with significant efforts by the world's central banks policy makers to influence expectations about the future path of policy.
Paul Donovan, UBS Global Economist said: 'The world's main central banks have spent the past few weeks frantically trying to influence market and economic expectations about the future path of policy. The US Federal Reserve has abandoned the inscrutability of the Greenspan era entirely, with a remarkably explicit policy statement and set of speeches about the intention to raise rates. The ECB's code word of 'vigilance' has been resurrected and its meaning spelled out. The Bank of England Governor has given direct guidance about the prospect of rate increases in 2016. These attempts to influence expectations have economic importance, and the importance of expectations was addressed directly in Kydland's Nobel Laureate winning work.'
UBS's 'Nobel Perspectives' is produced in partnership with German broadcasters Frank and Thomas Elstner and is the continuation of a project that Frank first began in1985, to document the life and work of Nobel Laureates. The online archive ubs.com/nobel, will host both newly commissioned and newly edited interview footage and material, published over the next 2 years.
Among others, the featured Nobel Laureates in Economic Sciences will include: Kenneth J. Arrow, James M. Buchanan Jr., Gérard Debreu, Lawrence R. Klein, Wassily Leontief, Sir Arthur Lewis, James E. Meade, Merton H. Miller, Christopher Pissarides, Alvin E. Roth, Paul A. Samuelson, Theodore W. Schultz, William F. Sharpe, Herbert A. Simon and Robert M. Solow. The series launched on 19 October with the work of the game theorist Alvin E. Roth. Over the coming weeks and months, further interviews and material will be added to the site along with accompanying commentary and analysis from 'Undercover Economist' Tim Harford and UBS's own Global Economist, Paul Donovan.
Hubertus Kuelps, Group Head of Communications & Branding said: 'We are passionate about sharing these interviews. They show both the personal lives of the Laureates and the implications of their research on society. Their work is invaluable to getting an understanding of the forces that drive global economies.'
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