Login

A New Framework for Economic Growth Theory

When
  • Thursday 24 November 2022
  • 18:00 - 19:30
Where
  • Virtual Event
Credits
  • Eligible for 1 credit

This webinar presents the impact of a new theoretical economic framework on asset management and discusses why asset managers should be interested.

We will discuss four major topics:

  • Inflation: the classical concept of inflation is not applicable to modern economies that are complex evolutionary systems. We need a new concept that we call generalized inflation. With current methods innovation and qualitative changes are computed as inflation. As a consequence, financial strategies to protect against inflation actually tend to destroy creativity and innovation.
  • Measure of economic output and productivity. Economic output is not an observable and real GDP is a theoretical term obtained as a transformation of nominal GDP. With current methods a healthy, growing, innovative economy might be perceived to be in recession. Decision making about productivity might work against creative innovation.
  • Measures of economic complexity. Modern economies are evolutionary complex systems. Measures of economic complexity have been developed. Complexity has economic value. Ignoring complexity means ignoring a critical aspect of value creation therefore missing value creation opportunities.
  • Qualitative growth. Qualitative growth is the new global economic framework. Qualitative growth is critical for “decoupling” growth from the use of natural resources. Qualitative growth is critical to preserve profit and asset value.
Agenda
18:00 Welcome by CFA Society Italy
18:05 A New Framework for Economic Growth Theory Sergio Focardi, PhD - Professor of Complexity Economics, Franklin University Switzerland, Lugano

Sergio Focardi

PhD - Professor of Complexity Economics, Franklin University Switzerland, Lugano

Sergio Focardi holds a degree in Electronic Engineering from the University of Genoa, Italy, and PhD in Financial Mathematics from the University of Karlsruhe, Germany. Dr Focardi has taught at major Universities: EDHEC in Nice, University of New York at Stony Brook, Princeton, Pole De Vinci in Paris, Franklin University in Lugano. Sergio is the author/coauthor of 24 books and more than 100 papers on quantitative finance. Sergio and coauthors have developed the theory of qualitative growth and have written extensively on this topic. Follow a selection of recent papers on qualitative growth: Sergio Focardi and Frank J. Fabozzi, “Why Should Asset Management Be Interested in New Economic Thinking”, The Journal of Portfolio Management Novel Risk, 2022, 276-295 Frank J. Fabozzi, Focardi, Linda Ponta, Manon Rivoire, Davide Mazza, “The Economic Theory of Qualitative Green Growth”, Structural Change and Economic Dynamics, March 2022 Frank J. Fabozzi, Sergio Focardi, and Zenu Sharma, “Investment Management Post Pandemic, Post Global Warming, Post Resource Depletion”, Journal of Portfolio Management, September 2021 Special Issue “Novel Risk”

18:50 Q&A Session
19:05 Closing Remarks

Important information

  • Registrations are closed.
  • A kind reminder with instructions to connect to Zoom platform has been sent to all registered participants on 24 November.
  • This event will be recorded. By registering to this event you acknowledge that your image and/or voice may be recorded from this specific event for CFA Society Italy purposes. 
  • This event will be held in English.
  • CFA Institute and CFA Society Italy Regular and Affiliate members can self report PL credits accessing their account page on the CFA Institute website.
  • Please download a backgrounder on qualitative economics and qualitative growth below.

Download
A new framework for economic growth theory_Sergio Focardi.pdf