{"id":7805,"date":"2021-04-26T07:54:02","date_gmt":"2021-04-26T11:54:02","guid":{"rendered":"http:\/\/blogs.darden.virginia.edu\/admissions\/?p=7805"},"modified":"2022-03-13T13:43:29","modified_gmt":"2022-03-13T17:43:29","slug":"office-hours-kinda-hachem","status":"publish","type":"post","link":"https:\/\/blogs.darden.virginia.edu\/admissions\/2021\/04\/26\/office-hours-kinda-hachem\/","title":{"rendered":"Unintended Consequences, Financial Recovery, Shadow Banking: An ‘Office Hours’ Conversation With Finance Professor Kinda Hachem"},"content":{"rendered":"

G<\/span>lobal Economies and Markets Professor Kinda Hachem<\/a> joined Darden Admissions for the latest installment of “Office Hours”, presented by Darden Ideas to Action. View the recording<\/a> or check out an audio version by streaming the conversation on the Experience Darden<\/em><\/a> or ExecMBA<\/em> podcasts<\/a>. Learn more about SPACs, GameStop and Bitcoin<\/em><\/a>, in addition to what it’s like to learn finance through the case method in the March 2021 “Office Hours” session with Professor Rich Evans<\/a>.<\/p>\n

\"\"<\/a><\/p>\n

 <\/p>\n

Senior Director of Admissions Brett Twitty spoke with Hachem about her early start working with a central bank in Canada, how Darden Professor Frank Warnock<\/a> inspired Hachem to join the Darden faculty and move to Charlottesville and her take on the current economic environment and Covid-related financial implications. Hachem focuses on the macro side of economics, looking at connections between macroeconomics and banking, financial stability risks and how central banks respond to them<\/strong>.<\/p>\n

When asked how she decides on topics for her elective course, The Economics of Money and Banking<\/em>, a course on financial stability and central banking, Hachem shared “Fundamentally, all spectacular collapses have a few things in common. I look for crises or major events in banking systems that on the surface seem very different \u2014 it’s a different country with a different set of institutions with different dependencies on the global economy, different financial products that are at the center of the problem. But when you boil it down, it<\/strong> all comes down to a similar formula<\/strong> where they lend long term and they borrow short term; people don’t internalize the risks and then you get a massive run. If you think about it, Iceland is one of the biggest banking collapses<\/a> that occurred \u2014 it was country-wide and what made it a bit more stark was how quickly the banking sector grew. We’re talking a matter of a couple of years where they had a massive run-up in the banking system and then two years later it’s completely gone. So (in class) we look for episodes of volatility and things that seem like they’re different. The course is not about studying one specific crisis or one specific policy episode \u2014 it’s going through these different cases and teasing out the commonalities.”<\/p>\n