Building a Program: Financial Economics
Financing can be done today in much more flexible and efficient ways than 30 years ago, partly due to innovations rooted in financial economics. Concepts such as mortgage securitization, interest rate swaps, and money market funds originated in academia during the 1970s as economists sought to combat the effects of that decade's recession. Recognizing the importance of this area to both academia and society, Caltech is developing a curriculum around the study of finance.
At the foundation of these efforts is The Ronald and Maxine Linde Institute of Economic and Management Sciences, Caltech's hub for research and education in business and economics, funded in 2011 by a gift of $12.3 million from trustee Ron Linde (MS '62, PhD '64) and his wife, Maxine. Financial economics has ties to diverse fields, including behavioral economics, neuroeconomics, applied mathematics, and computer science. These are fields in which Caltech traditionally excels, providing Linde Institute researchers with unique opportunities for interdisciplinary studies.
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