Finance Panel

The Clark Center for Global Markets explores finance professors’ views on vital policy issues via our Finance Panel. We regularly poll over 40 individuals on a range of timely and relevant topics. Panelists not only have the opportunity to respond to a poll’s statements, but an opportunity to comment and provide additional resources, if they wish. The Clark Center then shares the results with the public in a straightforward and concise format.

Please note that from September 2022, the language in our polls will use just two modifiers to refer to the size of an effect:

‘Substantial’: when an effect is large enough that it would make a difference that matters for the behavior involved.
‘Measurable’: when the direction of the effect is clear, but perhaps experts would differ as to whether it is substantial.

Banking Crisis

Finance

Banking Crisis

Question A:

Financial regulators in the US and Europe lack the tools and authority to deter runs on banks by uninsured depositors.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question B:

Not guaranteeing uninsured deposits at Silicon Valley Bank in full would have created substantial damage to the US economy.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question C:

Fully guaranteeing uninsured deposits at Silicon Valley Bank substantially increases banks’ incentives to engage in excessive risk-taking.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Banking

March 30, 2023

Inflation-Indexed Bonds

Finance

Inflation-Indexed Bonds

Question A:

By issuing inflation-indexed bonds, and thereby providing a long-term real safe asset for pension funds and retirement savers, governments can make a substantial contribution to social welfare.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Question B:

Issuance of inflation-indexed bonds substantially helps government commit to a responsible fiscal and monetary policy.

Responses

Source: Clark Center Economic Experts Panel
Methodology

Bonds

March 15, 2023

Taxing Stock Buybacks

Finance

Taxing Stock Buybacks

This Finance survey examines (a) Large-scale stock buybacks by public corporations provide short-term rewards for shareholders and senior executives at the expense of potentially higher-return corporate investments; (b) The proposed higher tax on corporate stock buybacks (an increase from 1% to 4%) would generate substantial public revenues; (c) The proposed higher tax on corporate stock buybacks would generate a substantial increase in corporate investment

Business, Management, & Corporate Performance

February 22, 2023

Debt Ceiling

Finance

Debt Ceiling

With the US federal government having reached the current debt ceiling set by Congress and amid political tensions about raising the limit, we invited our panels of experts in economics and finance to express their views on the potential effects of default, as well as the ceiling’s impact on the long-run size of the debt. Over the weekend before the recent meeting between President Biden and Speaker of the House Kevin McCarthy, we asked the US economics panel whether they agreed or disagreed with the following statements, and, if so, how strongly and with what degree of confidence:

Bonds

January 31, 2023

Individual Investor Order Execution

Finance

Individual Investor Order Execution

This Finance survey examines (a) The SEC’s proposed new rule for stock orders from individual investors is likely to be effective in giving those investors better prices on their trades on average; (b) The new rule would improve the overall operation of the stock market

Financial Regulation

January 19, 2023

Public and Private Equities

Finance

Public and Private Equities

This Finance survey examines (a) Although the reported volatility of asset values in private markets (private equity, buyouts, and venture capital) is lower than that of comparable assets in public markets, their true volatility is broadly similar or greater; (b) Since the global financial crisis, the realized returns on private equities have measurably exceeded the returns on public equities

December 20, 2022

Cryptocurrency Exchanges

Finance

Cryptocurrency Exchanges

This Finance survey examines (a) The collapse of a major crypto intermediary will have little impact on the wider economy and the stability of the traditional financial system; (b) The collapse of a major crypto intermediary suggests the need for the crypto asset class to be more tightly regulated.

Finance and the Economy

November 21, 2022

Passive Investing

Finance

Passive Investing

This Finance survey examines (a) The amount of passively invested funds has reached levels at which it has a measurable detrimental effect on market efficiency.

Investment Management

November 8, 2022

Banks and Financial Crises

Finance

Banks and Financial Crises

This Finance survey examines (a) Research on the nature and impact of bank runs has made it possible to limit substantially the wider economic damage from financial crises; (b) Reforms of financial regulation since 2008 (and macroprudential policies in some countries) will not substantially reduce the probability of financial crises

Banking

October 18, 2022

Currency Depreciation

Finance

Currency Depreciation

This Finance survey examines (a) The costs and risks associated with a sharp fall in the value of sterling outweigh any macroeconomic benefits for the UK of export stimulus due to a weaker currency; (b) Concerns about government finances and debt sustainability can undermine the reserve currency status of a major currency

International Finance

October 5, 2022