The Value of Financial Innovations

This is a hybrid event. Click HERE to watch the livestream.

Innovations that resolve some frictions in financial markets can provide funding to ventures that otherwise would be deprived of funds. This inaugural address considers the opportunities and limitations of financial innovations. Focusing on three recent prominent financial innovations—private equity buyouts, special purpose acquisition companies (SPACs), and cryptocurrency tokens—it highlights the unique role of finance theory. Theoretical models of these innovations can reveal when and for whom they can create value and suggest if and what regulations can improve the social surplus. The address also discusses the role of financial innovations in promoting sustainability goals.