Martin Schlegel: Eighth Karl Brunner Distinguished Lecture -
introduction of Kristin J Forbes
Text of the Eight Karl Brunner Distinguished Lecture by Mr Martin Schlegel, Chairman
of the Governing Board of the Swiss National Bank, at the ETH (Swiss Federal Institute
of Technology), Zurich, 3 October 2024.
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Ladies and gentlemen
I am very pleased to welcome you to the eighth Karl Brunner Distinguished Lecture. We
are delighted and honoured that Professor Kristin Forbes accepted our invitation. I
would like to thank the ETH Zurich and its President, Joël Mesot, for their hospitality.
When we began our search for tonight's speaker, we had specific qualities in mind. We
were looking for an exceptional economist who is at home both in academia and policy,
and who can communicate complex insights clearly. With these qualities in mind, the
name Kristin Forbes quickly emerged. Not only is she a distinguished economist, but
she has also rotated between academia and policy positions throughout her career. Her
work combines both areas: she uses research to inform policy, and she uses policy to
guide her research.
Kristin Forbes is a Professor of Management and Global Economics at MIT's Sloan
School of Management. She is also a prolific writer. She had published more than 150
articles at last count, and her output continues to grow. Her research covers a broad
range of topics in international economics, from financial contagion and capital flows to
monetary policy and financial stability. Kristin's work is known for its rigour, clarity and
policy relevance.
In an early article, published in the American Economic Review in 2000, she examined
the relationship between income inequality and growth. The topic has since received
widespread attention both within academia and beyond. This paper illustrates Kristin's
exceptional ability to identify critical issues. When she wrote about financial contagion
during the Asian financial crisis, the term 'contagion' was used loosely. Her research
helped to clarify our understanding of when and why crises spread. More recently,
Kristin's research has addressed questions of direct importance to central banks. For
example, she has studied the behaviour of interest rate cycles across countries and
over time. She has also provided policy insights on how to tackle inflation more
effectively.
Kristin is known for the exceptional clarity of her work, a quality which is appreciated not
least by her students. She has received many teaching awards, and one of her classes
on global economics is among the most popular at MIT's Sloan School. But her impact
extends far beyond academia. For instance, she regularly writes economic
commentaries in the Financial Times and other newspapers. These articles
demonstrate Kristin's talent for making complex economic concepts accessible to a
wide audience. Her commentaries are not only informative but also a pleasure to read.
Ladies and gentlemen, as you can see, Kristin is deeply committed to international
economics. So committed that she even chose to get married in Bretton Woods - the
birthplace of the IMF and World Bank.
But where does this passion for economics come from? When she began her studies at
Williams College in 1988, Kristin explored a variety of subjects - from astrophysics to
religion to psychology. However, it was Morton Schapiro's application of economic
principles to everyday life that really caught her attention. The practical application of
economic insights has remained central to Kristin's work.
Kristin has built a long and successful career in academia. But she also possesses
substantial experience in policy work, both in Europe and the United States. Let me
share another little anecdote: In 2001, after returning from a run, she discovered a
message on her answering machine. The message was from none other than John
Taylor, the inventor of the famous 'Taylor rule' for setting central bank rates. She was
so surprised by his call that she initially thought it was some kind of mistake or joke. But
it was not. John Taylor was inviting her to establish a new division at the U.S. Treasury
Department. As an aspiring assistant professor, Kristin's priority was publishing in
leading academic journals. So she declined the offer - twice. It was the late Rudi
Dornbusch who eventually convinced her to change her mind and join the Treasury.
Once back at MIT, Kristin focused her research on the issues she had encountered at
the Treasury. Then the phone rang again. This time, it was an invitation from Gregory
Mankiw to join the US President's Council of Economic Advisers. At 33, she became
the youngest person ever to serve on the Council.
Kristin has continued to serve on various boards and committees ever since. From
2014 to 2017, she was an External Member of the Monetary Policy Committee at the
Bank of England. Currently, she serves on advisory boards to the Federal Reserve
Bank of New York, the International Monetary Fund, and the Bank for International
Settlements. She is also the convener of the Bellagio Group, a gathering of top
academics and officials who meet annually to discuss major economic and financial
issues. It was at a Bellagio meeting in Stockholm that I had the pleasure of meeting
Kristin for the first time.
Kristin, I am honoured that you have accepted our invitation to come to Zurich. I greatly
look forward to your lecture.
Ladies and gentlemen, please join me in welcoming Kristin Forbes with a big round of
applause.