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Lasse Pedersen

Lasse Heje Pedersen is Professor of Finance at the Stern School of Business at NYU, a research associate at CEPR and NBER, and associate editor at The Journal of Finance and Journal of Economic Theory. Professor Pedersen received his Ph.D. from the Stanford Graduate School of Business, and his B.S. and M.S. in Mathematics-Economics from University of Copenhagen. His research focuses on liquidity risk. It explores why trading costs vary and may be high exactly when you need to sell, and how this liquidity risk lowers security prices and increases required returns as captured by the liquidity-adjusted capital asset pricing model. The liquidity risk models can help explain equity returns; option prices; bond yields; currency crashes; valuation of OTC securities; shortselling; the liquidity spirals leading to financial crisis with reinforcing drop-and-rebound in prices, increased margins, and tightened risk management; and constitute a realistic departure from classic frictionless finance.

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Thomas Grennes Thoughts From Across the Atlantic

Thomas Grennes is a professor of economics at the North Carolina State University and a former visiting faculty member at the Stockholm School of Economics in Riga. His research has dealt with various aspects of international economics, including open economy macroeconomics, international finance, and international trade in agricultural products. Recent research topics have included macroeconomic aspects of the Great Moderation, offshore outsourcing, sovereign wealth funds, and the relationship between government debt and economic growth. Earlier work dealt with emerging market issues in the Baltic countries and Russia and trade and macro policies in Sub-Saharan Africa. Economic history topics include the Columbian Exchange of plants and animals, the effects on food markets of introducing mechanical refrigeration, and the integration of Tsarist Russia into the world grain market. When he is not involved in economics, he enjoys mountain hiking.

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