WG

William N. Goetzmann

Professor of Finance and Management Studies & Director, International Center for at Yale School of Management and 1 other company
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  • If Libra was successful, you could imagine it would be something like the gold standard. We know what the problem with the gold standard is, which is fragility and financial panics and the inability of countries to use monetary policy to alleviate problems.

  • Private equity investments have gained in popularity among institutional investors over recent years. This is due in part to the great success enjoyed by endowments such as Yale and Harvard, which were early investors in non-marketable assets. These assets present a problem for valuation and risk measurement. The lack of market prices forces investors, regulators and auditors to rely on appraisals rather than transactions prices. Appraised price series are typically smoother than market price series although not necessarily less risky. Appraisal valuation masks the variation of market prices.

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