Economists Haizhou Huang (Managing Director and Management Committee Member at China International Capital Corporation Limited) and Patrick Bolton (Professor of Finance and Economics and Imperial College London) will visit London Business School to lead a discussion on, equity capital, fiscal policy and the Economic Development of China based on their recent title, Money Capital: New Monetary Principles for a More Prosperous Society. Richard Portes, Professor of Economics at London Business School will be the moderator for this discussion.
The principle concept of this book considers that fiat money represents the equity capital of a nation, while the cost of inflation mirrors the dilutions faced by the shareholders. The authors explore two central questions: How does money flow into the economy, and what is it used to purchase? The book presents a comprehensive framework that links the real economy with its monetary counterpart, emphasising the critical role of the banking sector and debt.
The speakers will discuss China as a case study in reimagining monetarism, an economic theory that has been widely established and accepted, which proposes that inflation is a monetary phenomenon driven by changes in the supply of money. The authors argue the recent experience―including the aftermath of the financial crisis of 2008 and the economic development of China―contradicts this basic prediction.
This panel will take place in collaboration with the AQR Asset Management Institute at London Business School. This event is part of a new series of events organised by the Wheeler Institute which will focus on different regions of the world, inviting distinguished speakers in conversation with our faculty at London Business School.
Date: Monday 28th October 2024
Starting Time: 18:30 BST
Registrations and refreshments from 18.00 BST. The event will last 1h15m followed by a book signing session.
Location: Sammy Ofer Centre, London Business School or you can join remotely
About the speakers
Haizhou Huang is Managing Director and Management Committee Member at China International Capital Corporation Limited. Huang is a special-term professor at PBC School of Finance at Tsinghua University. He has over twenty publications in leading academic and policy journals, and has become a leading voice in public and private sector finance in China. Huang is the co-author of Money Capital: New Monetary Principles for a More Prosperous Society, a ground breaking new title that offers a new novel perspective, viewing monetary economics through the lens of corporate finance.
Patrick Bolton is the Barbara and David Zalaznick Professor of Business at Columbia Business School and a Visiting Professor of Finance at Imperial College London. He previously held the position of President of the American Finance Association. Professor Bolton specialises in contract theory and its relationship to corporate finance. He has authored numerous books, including Contract Theory (2004), Sovereign Wealth Funds and Long-term Investing (2012), and Coping with the Climate Crisis: Mitigation Policies and Global Coordination (2018), and is the co-author of Money Capital.
Richard Portes, Professor of Economics at London Business School, is Founder and Honorary President of the Centre for Economic Policy Research (CEPR) and Co-Founder of Economic Policy. He is an elected Fellow of the Econometric Society and of the British Academy. He has been Chair of the European Systemic Risk Board Advisory Scientific Committee, of which he remains a member, and he is Co-Chair of the ESRB Joint Expert Group on Non-bank Financial Intermediation as well as of the new ESRB Crypto Assets Task Force. He is a founder member of the Bellagio Group on the International Economy and the Euro50 Group. He is an Academic Director of the AQR Asset Management Institute at LBS.