Nobel laureate preaches wisdom of fiscal innovation
Financial innovation could help Asian economies, China in particular, weather future downturns, says Myron Scholes, the 1997 Nobel laureate in economic sciences. Speaking yesterday at the Chinese University of Hong Kong, Dr Scholes said China could benefit from being more proactive in the way it manages its reserves.
He said using tools such as financial derivatives could help the government manage its economic risk.
Dr Scholes in 1973 co-developed the Black-Scholes options pricing model, the basis of pricing and risk-management for financial instruments around the world.