• Key finance concepts: real versus financial assets

    Real assets are the assets that companies seek to acquire, to build and to invest in. Financial assets are the resources that they raise to allow that to happen. The distinction underpins what we call corporate finance – the financing of corporations. * When economists … Continued

  • Is the US dollar losing ground as a global currency?

    Latest data show that the US dollar remains the dominant trading currency globally, and is still the pre-eminent foreign reserve currency, though slowly losing ground, mainly to other developed country currencies. * Perhaps the question I have been asked most … Continued

  • Key finance concepts: the agency problem

    A particular case of asymmetric information is where one person, who we call the principal, wants to get another person, who we call the agent, to do something on their behalf. This situation is known as the principal-agent problem, or more simply … Continued

  • Key finance concepts: asymmetric information

    Asymmetric information is where two people doing business together have different levels of information about something important to the transaction, meaning that one may be able to take advantage of the other. It is very common in economic life. * Information is … Continued

  • A new financial institution to be born?

    The new Shanghai Cooperation Organisation development bank will be the latest addition to China-sponsored new financial institutions. * At the September 2025 meeting of the Shanghai Cooperation Organisation (SCO) Chinese President Xi Jinping announced, alongside the Global Governance Initiative, the … Continued

  • A first look at the Sizewell C financing

    On 22 July 2025, the UK government announced that Sizewell C new nuclear power projects reached final investment decision (FID). A look at what has been announced contains some surprises and prompts questions. Comments and corrections are most welcome. * … Continued

  • Key finance concepts: What is a corporation?

    Ahead of teaching corporate finance each year, I like to try to explain what a corporation actually is. * A corporation is a particular way of organising economic activities. What is called a corporation in the US is called a … Continued

  • Climate change and finance

    Climate change is a systematic risk * In the standard theory of portfolio diversification, we divide risk into systematic and idiosyncratic or diversifiable risk. We argue that idiosyncratic risks can be diversified away, so there is no market reward for … Continued

  • Multiple causation in history: the case of the Global Financial Crisis

    Each year on the Master of Finance core course on Financial Institutions and Markets, I do a session on the Great Financial Crisis of 2007-09. One thing I emphasise is the many different causes of this highly influential event, which … Continued

  • Nuclear is only a small part of the answer to climate change

    Nuclear has a role to play in providing reliable carbon-free electricity, but in the US and Europe it is likely to be too expensive to have more than a small role. * As I have written two books about nuclear … Continued