The Jakarta Post
Robert F. Engle III - JP/Wendra AjistyatamaAs the global financial market grapples with rising volatility, emerging markets are very vulnerable to capital outflows and Indonesia is no exception, a Nobel laureate has warned.
The unexpected victory of the Republican candidate Donald Trump in the United States presidential election last year pushed markets out of the safe zones seen just weeks before, a reminder that financial stability will always be accompanied by risks, the 2003 Nobel laureate in economics Robert F. Engle III said in Jakarta on Wednesday.
“Financial stability does not operate without risk. In fact, financial markets depend on risk,” said Engle in a public lecture titled “The prospect for global financial stability” at Atma Jaya Catholic University.
Speaking to an audience of hundreds, the finance professor at New York University’s Stern Sc...