An alternative investment or alternative investment fund is an investment or fund that invests in asset classes other than stocks and cash. The term is a loose one and includes tangible assets such as precious metals, wine, coins, or stamps and some financial assets such as real estate, private equity, distressed securities, hedge funds, carbon credits, venture capital, film production, financial derivatives, cryptocurrencies. Investments in real estate and shipping are often termed "alternative" despite the ancient use of such real assets to enhance and preserve wealth. In the last century, fancy color diamonds have emerged as an alternative investment class as well. Alternative investments are to be contrasted with traditional investments; as the definition of alternative investments is broad and research varies across the investment classes. For example and wine investments may lack high-quality data; the Goizueta Business School at Emory University has established the Emory Center for Alternative Investments to provide research and a forum for discussion regarding private equity, hedge fund, venture capital investments.
In recent years, the growth of alternative finance has opened up new avenues to investing in alternatives. These include the following: Equity crowdfunding platforms allow "the crowd" to review early-stage investment opportunities presented by entrepreneurs and take an equity stake in the business. An online platform acts as a broker between investors and founders; these platforms differ in the types of opportunities they will offer up to investors, how much due diligence is performed, degree of investor protections available, minimum investment size and so on. Equity crowdfunding platforms have seen a significant amount of success in the UK and, with the passing of JOBS Act Title III in early 2016, are now picking up steam in the United States; the investor-led model was introduced by UK-based crowdfunding platform SyndicateRoom and makes it necessary for any startup seeking funding to first be vetted by an experienced investor, investing a significant amount of the target round. Only available in the UK, SEIS funds and EIS funds present a tax-efficient way of investing in early-stage ventures.
These work much like venture capital funds, with the added bonus of receiving government tax incentives for investing and loss relief protection should the companies invested in fail. Such funds help to diversify investor exposure by investing into multiple early ventures. Fees are charged by the management team for participating in the fund, these can end up totaling anywhere between 15% and 40% of the fund value over the course of its life. Private equity consists of large-scale private investments into unlisted companies in return for equity. Private funds are formed by combining funds from institutional investors such as high-net-worth individuals, insurance companies, pension funds. Funds are used alongside borrowed money and the money of the private equity firm itself to invest in businesses they believe to have high growth potential. In Europe, venture capital, buy-ins and buy-outs are considered private equity; the notion of “infrastructure as an asset class” has grown in the past seven years.
But, so far, this development has been the preserve of institutional investors: pension funds, insurance companies and sovereign wealth funds, with limited access to high-net-worth investors. In a 1986 paper, William Baumol used the repeat sale method and compared prices of 500 paintings sold over 410 years before concluding that the average real annual return on art was 0.55%. Another study of high-quality oil paintings sold in Sweden between 1985 and 2016 determined the average return to be 0.6% annually. However, art gallerists are sometimes ambivalent to the idea of treating artwork as an investment. Art is notoriously difficult to value, there are quite a few factors to bear in mind for art valuation; the "Merrill Lynch/Cap Gemini Ernst & Young World Wealth Report 2003", based on 2002 data, showed high-net-worth individuals, as defined in the report, to have 10% of their financial assets in alternative investments. For the purposes of the report, alternative investments included "structured products, luxury valuables and collectibles, hedge funds, managed futures, precious metals".
By 2007, this had reduced to 9%. No recommendations were made in either report about the amount of money investors should place in alternative investments. Alternative investments are sometimes used as a way of reducing overall investment risk through diversification; some of the characteristics of alternative investments may include: Low correlation with traditional financial investments such as stocks and bonds It may be difficult to determine the current market value of the asset Alternative investments may be illiquid Costs of purchase and sale may be high There may be limited historical risk and return data A high degree of investment analysis may be required before buying Liquid alternatives are alternative investments that provide daily liquidity. Liquid alternative investments should produce returns uncorrelated to GDP growth, must have protection against systemic market risk and should be too small to create new systemic risks for the market. Hedge funds may be included in this category.
Liquid alternatives became popular in the late 2000s, growing from $124 billion in assets under management 2010 to $310 billion in 2014. How
A hedge fund is an investment fund that pools capital from accredited investors or institutional investors and invests in a variety of assets with complex portfolio-construction and risk management techniques. It is administered by a professional investment management firm, structured as a limited partnership, limited liability company, or similar vehicle. Hedge funds are distinct from mutual funds, as their use of leverage is not capped by regulators, distinct from private equity funds, as the majority of hedge funds invest in liquid assets; the term "hedge fund" originated from the paired long and short positions that the first of these funds used to hedge market risk. Over time, the types and nature of the hedging concepts expanded, as did the different types of investment vehicles. Today, hedge funds engage in a diverse range of markets and strategies and employ a wide variety of financial instruments and risk management techniques. Hedge funds are made available only to certain sophisticated or accredited investors, cannot be offered or sold to the general public.
As such, they avoid direct regulatory oversight, bypass licensing requirements applicable to investment companies, operate with greater flexibility than mutual funds and other investment funds. However, following the financial crisis of 2007–2008, regulations were passed in the United States and Europe with intentions to increase government oversight of hedge funds and eliminate certain regulatory gaps. Hedge funds have existed for many decades and have become popular, they have now grown to be a substantial fraction of asset management, with assets totaling around $3.235 trillion in 2018. Hedge funds are always open-ended, allow additions or withdrawals by their investors; the value of an investor's holding is directly related to the fund net asset value. Many hedge fund investment strategies aim to achieve a positive return on investment regardless of whether markets are rising or falling. Hedge fund managers invest money of their own in the fund they manage. A hedge fund pays its investment manager an annual management fee, a performance fee.
Both co-investment and performance fees serve to align the interests of managers with those of the investors in the fund. Some hedge funds have several billion dollars of assets under management; the word "hedge", meaning a line of bushes around the perimeter of a field, has long been used as a metaphor for placing limits on risk. Early hedge funds sought to hedge specific investments against general market fluctuations by shorting the market, hence the name. Nowadays, many different investment strategies are used, many of which do not "hedge risk". During the US bull market of the 1920s, there were numerous private investment vehicles available to wealthy investors. Of that period the best known today is the Graham-Newman Partnership, founded by Benjamin Graham and his long-time business partner Jerry Newman; this was cited by Warren Buffett in a 2006 letter to the Museum of American Finance as an early hedge fund, based on other comments from Buffett, Janet Tavakoli deems Graham's investment firm the first hedge fund.
The sociologist Alfred W. Jones is credited with coining the phrase "hedged fund" and is credited with creating the first hedge fund structure in 1949. Jones referred to his fund as being "hedged", a term commonly used on Wall Street to describe the management of investment risk due to changes in the financial markets. In the 1970s, hedge funds specialized in a single strategy with most fund managers following the long/short equity model. Many hedge funds closed during the recession of 1969–70 and the 1973–1974 stock market crash due to heavy losses, they received renewed attention in the late 1980s. During the 1990s, the number of hedge funds increased with the 1990s stock market rise, the aligned-interest compensation structure and the promise of above high returns as causes. Over the next decade, hedge fund strategies expanded to include: credit arbitrage, distressed debt, fixed income and multi-strategy. US institutional investors such as pension and endowment funds began allocating greater portions of their portfolios to hedge funds.
During the first decade of the 21st century hedge funds gained popularity worldwide, by 2008 the worldwide hedge fund industry held US$1.93 trillion in assets under management. However, the 2008 financial crisis caused many hedge funds to restrict investor withdrawals and their popularity and AUM totals declined. AUM totals rebounded and in April 2011 were estimated at $2 trillion; as of February 2011, 61% of worldwide investment in hedge funds came from institutional sources. In June 2011, the hedge fund management firms with the greatest AUM were Bridgewater Associates, Man Group, Paulson & Co. Brevan Howard, Och-Ziff. Bridgewater Associates had $70 billion in assets under management as of 1 March 2012. At the end of that year, the 241 largest hedge fund firms in the United States collectively held $1.335 trillion. In April 2012, the hedge fund industry reached a record high of US$2.13 trillion total assets under management. In the middle of the 2010s, the hedge fund industry experienced a general decline in the "old guard" fund managers.
Dan Loeb called it a "hedge fund killing field" due to the classic long/short falling out of favor because of unprecedented easing by central banks. The US equity market correlation became untenable to short
Foreign exchange market
The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. This market determines the foreign exchange rate, it includes all aspects of buying and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the Credit market; the main participants in this market are the larger international banks. Financial centers around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. Since currencies are always traded in pairs, the foreign exchange market does not set a currency's absolute value but rather determines its relative value by setting the market price of one currency if paid for with another. Ex: US$1 is worth X CAD, or CHF, or JPY, etc; the foreign exchange market operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as "dealers", who are involved in large quantities of foreign exchange trading.
Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the "interbank market". Trades between foreign exchange dealers can be large, involving hundreds of millions of dollars; because of the sovereignty issue when involving two currencies, Forex has little supervisory entity regulating its actions. The foreign exchange market assists international trade and investments by enabling currency conversion. For example, it permits a business in the United States to import goods from European Union member states Eurozone members, pay Euros though its income is in United States dollars, it supports direct speculation and evaluation relative to the value of currencies and the carry trade speculation, based on the differential interest rate between two currencies. In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying with some quantity of another currency; the modern foreign exchange market began forming during the 1970s.
This followed three decades of government restrictions on foreign exchange transactions under the Bretton Woods system of monetary management, which set out the rules for commercial and financial relations among the world's major industrial states after World War II. Countries switched to floating exchange rates from the previous exchange rate regime, which remained fixed per the Bretton Woods system; the foreign exchange market is unique because of the following characteristics: its huge trading volume, representing the largest asset class in the world leading to high liquidity. As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements, the preliminary global results from the 2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $5.09 trillion per day in April 2016.
This is down from $5.4 trillion in April 2013 but up from $4.0 trillion in April 2010. Measured by value, foreign exchange swaps were traded more than any other instrument in April 2016, at $2.4 trillion per day, followed by spot trading at $1.7 trillion. The $5.09 trillion break-down is as follows: $1.654 trillion in spot transactions $700 billion in outright forwards $2.383 trillion in foreign exchange swaps $96 billion currency swaps $254 billion in options and other products Currency trading and exchange first occurred in ancient times. Money-changers were living in the Holy Land in the times of the Talmudic writings; these people used city stalls, at feast times the Temple's Court of the Gentiles instead. Money-changers were the silversmiths and/or goldsmiths of more recent ancient times. During the 4th century AD, the Byzantine government kept a monopoly on the exchange of currency. Papyri PCZ I 59021, shows the occurrences of exchange of coinage in Ancient Egypt. Currency and exchange were important elements of trade in the ancient world, enabling people to buy and sell items like food and raw materials.
If a Greek coin held more gold than an Egyptian coin due to its size or content a merchant could barter fewer Greek gold coins for more Egyptian ones, or for more material goods. This is why, at some point in their history, most world currencies in circulation today had a value fixed to a specific quantity of a recognized standard like silver and gold. During the 15th century, the Medici family were required to open banks at foreign locations in order to exchange currencies to act on behalf of textile merchants. To facilitate trade, the bank created the nostro account book which contained two columned entries showing amounts of foreign and local currencies. During the 17th century, Amsterdam maintained an active Forex market. In 1704, foreign exchange took place between agents acting in the interests of the Kingdom of Englan
The Federal Reserve System is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of the roles and responsibilities of the Federal Reserve System; the U. S. Congress established three key objectives for monetary policy in the Federal Reserve Act: maximizing employment, stabilizing prices, moderating long-term interest rates; the first two objectives are sometimes referred to as the Federal Reserve's dual mandate. Its duties have expanded over the years, also include supervising and regulating banks, maintaining the stability of the financial system, providing financial services to depository institutions, the U. S. government, foreign official institutions.
The Fed conducts research into the economy and provides numerous publications, such as the Beige Book and the FRED database. The Federal Reserve System is composed of several layers, it is governed by the presidentially appointed board of Federal Reserve Board. Twelve regional Federal Reserve Banks, located in cities throughout the nation and oversee owned commercial banks. Nationally chartered commercial banks are required to hold stock in, can elect some of the board members of, the Federal Reserve Bank of their region; the Federal Open Market Committee sets monetary policy. It consists of all seven members of the board of governors and the twelve regional Federal Reserve Bank presidents, though only five bank presidents vote at a time. There are various advisory councils. Thus, the Federal Reserve System has both private components, it has a structure unique among central banks, is unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used.
The federal government sets the salaries of the board's seven governors. The federal government receives all the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, an account surplus is maintained. In 2015, the Federal Reserve earned net income of $100.2 billion and transferred $97.7 billion to the U. S. Treasury. Although an instrument of the US Government, the Federal Reserve System considers itself "an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, the terms of the members of the board of governors span multiple presidential and congressional terms." The primary motivation for creating the Federal Reserve System was to address banking panics. Other purposes are stated in the Federal Reserve Act, such as "to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, for other purposes".
Before the founding of the Federal Reserve System, the United States underwent several financial crises. A severe crisis in 1907 led Congress to enact the Federal Reserve Act in 1913. Today the Federal Reserve System has responsibilities in addition to ensuring the stability of the financial system. Current functions of the Federal Reserve System include: To address the problem of banking panics To serve as the central bank for the United States To strike a balance between private interests of banks and the centralized responsibility of government To supervise and regulate banking institutions To protect the credit rights of consumers To manage the nation's money supply through monetary policy to achieve the sometimes-conflicting goals of maximum employment stable prices, including prevention of either inflation or deflation moderate long-term interest rates To maintain the stability of the financial system and contain systemic risk in financial markets To provide financial services to depository institutions, the U.
S. government, foreign official institutions, including playing a major role in operating the nation's payments system To facilitate the exchange of payments among regions To respond to local liquidity needs To strengthen U. S. standing in the world economy Banking institutions in the United States are required to hold reserves—amounts of currency and deposits in other banks—equal to only a fraction of the amount of the bank's deposit liabilities owed to customers. This practice is called fractional-reserve banking; as a result, banks invest the majority of the funds received from depositors. On rare occasions, too many of the bank's customers will withdraw their savings and the bank will need help from another institution to continue operating. Bank runs can lead to a multitude of economic problems; the Federal Reserve System was designed as an attempt to prevent or minimize the occurrence of bank runs, act as a lender of last resort when a bank run does occur. Many economists, following Nobel laureate Milton Friedman, believe that the Federal Reserve inappropriately refused to lend money to small banks during the bank runs of 1929.
Because some banks refused to clear checks from certain other banks during times of economic uncertainty, a check-clearing system was created in the Federal Reserve System. It is described in
Theory of the firm
The theory of the firm consists of a number of economic theories that explain and predict the nature of the firm, company, or corporation, including its existence, behaviour and relationship to the market. In simplified terms, the theory of the firm aims to answer these questions: Existence. Why do firms emerge? Why are not all transactions in the economy mediated over the market? Boundaries. Why is the boundary between firms and the market located there with relation to size and output variety? Which transactions are performed internally and which are negotiated on the market? Organization. Why are firms structured in such a specific way, for example as to hierarchy or decentralization? What is the interplay of formal and informal relationships? Heterogeneity of firm actions/performances. What drives different actions and performances of firms? Evidence. What tests are there for respective theories of the firm? Firms exist as an alternative system to the market-price mechanism when it is more efficient to produce in a non-market environment.
For example, in a labor market, it might be difficult or costly for firms or organizations to engage in production when they have to hire and fire their workers depending on demand/supply conditions. It might be costly for employees to shift companies every day looking for better alternatives, it may be costly for companies to find new suppliers daily. Thus, firms engage in a long-term contract with their employees or a long-term contract with suppliers to minimize the cost or maximize the value of property rights; the First World War period saw change of emphasis in economic theory away from industry-level analysis which included analyzing markets to analysis at the level of the firm, as it became clear that perfect competition was no longer an adequate model of how firms behaved. Economic theory until had focused on trying to understand markets alone and there had been little study on understanding why firms or organisations exist. Markets are guided by prices and quality as illustrated by vegetable markets where a buyer is free to switch sellers in an exchange.
The need for a revised theory of the firm was emphasized by empirical studies by Adolf Berle and Gardiner Means, who made it clear that ownership of a typical American corporation is spread over a wide number of shareholders, leaving control in the hands of managers who own little equity themselves. R. L. Hall and Charles J. Hitch found that executives made decisions by rule of thumb rather than in the marginalist way. According to Ronald Coase, people begin to organise their production in firms when the transaction cost of coordinating production through the market exchange, given imperfect information, is greater than within the firm. Ronald Coase set out his transaction cost theory of the firm in 1937, making it one of the first attempts to define the firm theoretically in relation to the market. One aspect of its'neoclassicism' lies in presenting an explanation of the firm consistent with constant returns to scale, rather than relying on increasing returns to scale. Another is in defining a firm in a manner, both realistic and compatible with the idea of substitution at the margin, so instruments of conventional economic analysis apply.
He notes that a firm’s interactions with the market may not be under its control, but its internal allocation of resources are: “Within a firm, … market transactions are eliminated and in place of the complicated market structure with exchange transactions is substituted the entrepreneur … who directs production.” He asks why alternative methods of production, could not either achieve all production, so that either firms use internal prices for all their production, or one big firm runs the entire economy. Coase begins from the standpoint that markets could in theory carry out all production, that what needs to be explained is the existence of the firm, with its "distinguishing mark … the supersession of the price mechanism." Coase identifies some reasons why firms might arise, dismisses each as unimportant: if some people prefer to work under direction and are prepared to pay for the privilege. Instead, for Coase the main reason to establish a firm is to avoid some of the transaction costs of using the price mechanism.
These include discovering relevant prices, as well as the costs of negotiating and writing enforceable contracts for each transaction. Moreover, contracts in an uncertain world will be incomplete and have to be re-negotiated; the costs of haggling about division of surplus if there is asymmetric information and asset specificity, may be considerable. If a firm operated internally under the market system, many contracts would be required. In contrast, a real firm has few contracts, such as defining a manager's power of direction over employees, in exchange for which the employee is paid; these kinds of contracts are drawn up in situations of uncertainty, in particular for relationships which last long periods of time. Such a situation runs counter to neo-classical economic theory; the neo-classical market is instantaneous, forbidding the development of extended agent-principal relationships, of planning, of trust. Coase concludes that “a firm is
CME Group Inc. is an American financial market company operating an options and futures exchange. It owns and operates large derivatives and futures exchanges in Chicago, New York City, exchange facilities in London, using online trading platforms, it owns the Dow Jones stock and financial indexes, CME Clearing Services, which provides settlement and clearing of exchange trades. The exchange-traded derivative contracts include futures and options based on interest rates, equity indexes, foreign exchange, agricultural commodities and precious metals and real estate, it has been described by The Economist as "The biggest financial exchange you have never heard of."The corporate world headquarters are in Chicago in The Loop. The corporation was formed by the 2007 merger of the Chicago Mercantile Exchange and the Chicago Board of Trade. On March 17, 2008, CME Group announced it had acquired NYMEX Holdings, Inc. the parent company of the New York Mercantile Exchange and Commodity Exchange, Inc for $8.9 billion in cash and CME Group Stock.
The acquisition was formally completed on August 22, 2008, the NYMEX systems were integrated by September 30, 2009. The four exchanges now operate as designated contract markets of the CME Group. On February 10, 2010, CME announced its purchase of 90% of Dow Jones Indexes, including the Dow Jones Industrial Average. CME subsequently contributed Dow Jones Indexes to the formation of S&P Dow Jones Indices in exchange for a 24.4% ownership interest. In April 2013, CME purchased the remaining 10% interest in Dow Jones Indexes for $80.0 million. As a result, CME's interest in S&P Dow Jones Indices increased from 24.4% to 27.0%. On October 17, 2012, CME announced it would acquire the Kansas City Board of Trade for $126 Million in cash. KCBOT is the dominant venue for the sale of hard red winter wheat; the Chicago Board of Trade is the leading trade platform for soft red winter wheat. On November 1, 2017, CME announced they would begin trading in Bitcoin futures by the end of 2017, pending regulatory approval.
On March 29, 2018, CME announced. The acquisition was completed on November 2, 2018. Agricultural Commodity Contracts include: Live Cattle, Lean Hogs, Feeder Cattle, Class IV Milk, Class III Milk, Nonfat Dry Milk Powder, Dry Whey, Cheese and Random Length Lumber. Since December 2017 bitcoin futures are traded. Chicago Mercantile Exchange Intercontinental Exchange OneChicago CME Group Titleholders, the season-ending tournament of the LPGA Tour of women's golf, sponsored by CME Group Chicago Board of Trade New York Mercantile Exchange The CME Group Collections at University of Illinois at Chicago
Joseph Eugene Stiglitz is an American economist, public policy analyst, a professor at Columbia University. He is a recipient of the Nobel Memorial Prize in the John Bates Clark Medal, he is a former senior vice president and chief economist of the World Bank and is a former member and chairman of the Council of Economic Advisers. He is known for his support of Georgist public finance theory and for his critical view of the management of globalization, of laissez-faire economists, of international institutions such as the International Monetary Fund and the World Bank. In 2000, Stiglitz founded the Initiative for Policy Dialogue, a think tank on international development based at Columbia University, he has been a member of the Columbia faculty since 2001, received that university's highest academic rank in 2003. He was the founding chair of the university's Committee on Global Thought, he chairs the University of Manchester's Brooks World Poverty Institute. He is a member of the Pontifical Academy of Social Sciences.
In 2009, the President of the United Nations General Assembly Miguel d'Escoto Brockmann, appointed Stiglitz as the chairman of the U. N. Commission on Reforms of the International Monetary and Financial System, where he oversaw suggested proposals and commissioned a report on reforming the international monetary and financial system, he served as chair of the international Commission on the Measurement of Economic Performance and Social Progress, appointed by President Sarkozy of France, which issued its report in 2010, Mismeasuring our Lives: Why GDP doesn't add up, serves as co-chair of its successor, the High Level Expert Group on the Measurement of Economic Performance and Social Progress. From 2011 to 2014, Stiglitz was president of the International Economic Association, he presided over the organization of the IEA triennial world congress held near the Dead Sea in Jordan in June 2014. Stiglitz has received more than 40 honorary degrees, including from Cambridge and Harvard, he has been decorated by several governments including Bolivia, Colombia and most France, where he was appointed a member of the Legion of Honor, order Officer.
In 2011 Stiglitz was named by Time magazine as one of the 100 most influential people in the world. Stiglitz's work focuses on income distribution from a Georgist perspective, asset risk management, corporate governance, international trade, he is the author of several books, the latest being The Euro: How a Common Currency Threatens the Future of Europe, The Great Divide: Unequal Societies and What We Can Do About Them, Rewriting the Rules of the American Economy: An Agenda for Growth and Shared Prosperity, Creating a Learning Society: A New Approach to Growth Development and Social Progress. Stiglitz was born in Gary, Indiana, to Charlotte, a schoolteacher, Nathaniel David Stiglitz, an insurance salesman. Stiglitz graduated from Amherst College in 1964, where he was active on the debate team and president of the student government. During his senior year at Amherst College, he studied at the Massachusetts Institute of Technology, where he pursued graduate work. From 1965 to 1966, he moved to the University of Chicago to do research under Hirofumi Uzawa who had received an NSF grant.
He studied for his PhD from MIT from 1966 to 1967, during which time he held an MIT assistant professorship. Stiglitz stated that the particular style of MIT economics suited him well, describing it as "simple and concrete models, directed at answering important and relevant questions."From 1966 to 1970 he was a research fellow at the University of Cambridge. Stiglitz arrived at Fitzwilliam College, Cambridge as a Fulbright Scholar in 1965, he won a Tapp Junior Research Fellowship at Gonville and Caius College, Cambridge, instrumental in shaping his understanding of Keynes and macroeconomic theory. In subsequent years, he held academic positions at Yale and Princeton. Stiglitz is now a professor at Columbia University, with appointments at the Business School, the Department of Economics and the School of International and Public Affairs, is editor of The Economists' Voice journal with J. Bradford DeLong and Aaron Edlin, he gives classes for a double-degree program between Sciences Po Paris and École Polytechnique in'Economics and Public Policy'.
He has chaired The Brooks World Poverty Institute at the University of Manchester since 2005. Stiglitz is considered a New-Keynesian economist, although at least one economics journalist says his work cannot be so categorised. In addition to making numerous influential contributions to macroeconomics, Stiglitz has played a number of policy roles, he served in the Clinton administration as the chair of the President's Council of Economic Advisers. At the World Bank, he served as senior vice-president and chief economist, in the time when unprecedented protest against international economic organizations started, most prominently with the Seattle WTO meeting of 1999, he was fired by the World Bank for expressing dissent with its policies. He was a lead author of the 1995 Report of the Intergovernmental Panel on Climate Change, which shared the Nobel Peace Prize in 2007, he is a member of Collegium International, an organization of leaders with political and ethical expertise whose goal is to provide new approaches in overcoming the obstacles in the way of a peaceful just and an economically sustainable world.
He is a member of the scientific committee of the Fundacion IDEAS, a Spanish think tank and a regular c