I am an Associate Professor of Finance at Kellogg School of Management, Northwestern University and a Faculty Research Fellow at the National Bureau of Economic Research (NBER). My research focuses on international finance and macroeconomics.
My main line of inquiry is about the government's role in the provision of currencies and safe assets. I use financial valuation-based tools to study the monetary, exchange rate, and real consequences of government borrowing, and to evaluate the government's fiscal capacity and sustainability.
A related topic is how the currencies and safe assets are intermediated in the international monetary system, how they generate a liquidity premium in this intermediation process, and how this process is affected by the monetary policy.
In the broader field, I also work on the asset pricing theories of exchange rates, and the roles international trade, incomplete markets, and portfolio allocation play in such theories.
Finance 1 answers managers' and investors' most fundamental finance question: how should a project or an asset be valued? Managers must determine the value of building a factory, entering a new market, or purchasing an entire firm when deciding in which projects to invest. Similarly, individuals must assess the value of financial securities to decide how to invest their wealth. Using a combination of lectures and business cases, Finance 1 teaches the discounted cash flow and multiples methods to value projects or assets. These valuation tools lay the foundation for all work in capital markets and corporate finance.
Prerequisite: Business Analytics I (DECS-430-5)
Corequisite/Prerequisite: Accounting for Decision Making (ACCT-430) and Business Analytics II (DECS 431-0)