Tag Archives: Lawrence R. Klein Award

Deloitte Report Reveals Mid-Market Companies Expect U.S. Economic Growth

ASU helps honor ‘Most Accurate Economist’

While many Americans were still pinching every penny and praying for a faster recovery from the Great Recession, John Lonski, chief capital markets economist of Moody’s Analytics, understood what our country really faced in its uphill battle toward an economic comeback. He had the most accurate U.S. forecast among the nation’s top economists for the years 2010 to 2013. Accordingly, he will be honored Oct. 16 with the prestigious Lawrence R. Klein Award for his achievements.

“I am honored to receive this award on behalf of Moody’s Analytics’ Capital Markets Research team,” Lonski says. “Given the economic uncertainty, accurate economic analysis is more important than ever to help financial institutions quantify risk and opportunities and simulate the impact of policy adjustments.”

The W. P. Carey School of Business at Arizona State University sponsors and judges the Lawrence R. Klein Award, one of the best-known and longest-standing awards in the economics profession. The annual award is named for the late Nobel Prize winner Dr. Lawrence Klein, and it goes to the individual or team with the most accurate economic forecast among the Blue Chip Economic Indicators survey participants for a four-year period. The Blue Chip newsletter has been published for almost 40 years and is regarded as the “gold standard” of business forecasts. Lonski beat out about 50 competitors for this year’s award.

“The biggest challenge of the 2010-to-2013 forecast period was to anticipate how the recovery would unfold,” explains Economics Professor Dennis Hoffman, director of the L. William Seidman Research Institute at the W. P. Carey School of Business. “John Lonski’s projections were particularly accurate for the last two years, when he called for a slow decline in the unemployment rate and nailed gross domestic product (GDP) growth at just over 2 percent.”

Lonski is an acclaimed forecaster, who contributes regularly to forecasting surveys from The Wall Street Journal, Bloomberg News, Reuters and the Philadelphia Federal Reserve Bank. He was named the top economic forecaster in The Wall Street Journal’s June 2004 survey, and he has done countless interviews for CNBC, The New York Times, Fox Business, Dow Jones, Bloomberg TV, National Public Radio and many other major media outlets. He contributes a quarterly editorial piece for Japan’s Nikkei Veritas newspaper and comments regularly in Moody’s “CreditTrends” and weekly “Market Outlook.” Prior to joining Moody’s Analytics, he worked for National Economic Research Associates.

At the Klein Award event, Lonski will deliver his 2015 forecast, “Goldilocks Redux: 2015’s Outlook for Business Activity, Inflation, and Interest Rates,” including these predictions:

• Another year of modest improvement for the U.S. economy is likely.
• The continued release of pent-up demand for autos and housing should underpin consumer spending.
• However, the subpar growth of employment income, the household-sector’s debt overhang, and the conflict between still-tighter mortgage loan standards and the diminished savings of middle-income households limit the upside for household expenditures.
• The unprecedented aging of both the population and the work force will weigh on income growth and spending.
• Ample global slack implies that a disruptive swelling of inflation risks is unlikely.
Year-end 2015’s expected ranges are .75 to 1 percent for federal funds and 3 to 3.25 percent for the 10-year Treasury yield.
• By mid-2015, the Fed should begin a measured tightening of policy.
• The heightened scrutiny of regulators may ward off the excesses of previous credit-cycle peaks.

Top industry professionals and others will attend the invitation-only award ceremony Oct. 16 at the University Club in New York, starting at 6 p.m.

VIPs expected to be in attendance include Randell E. Moore, executive editor of the Blue Chip Economic Indicators; Amy Hillman, dean of the W. P. Carey School of Business; Hannah Klein, daughter of the award namesake; and Trevor Bond, president and chief executive officer of W. P. Carey Inc. (NYSE: WPC).

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ASU honors two for economic forecasting

They correctly predicted one of the most volatile times in the history of the U.S. economy. For their incredible accuracy, a counselor to the Secretary of the U.S. Treasury and Morgan Stanley’s chief U.S. economist are about to receive a high honor. Dr. Richard Berner and David Greenlaw will accept the prestigious Lawrence R. Klein Award for economic-forecasting accuracy in New York on Oct. 18. Greenlaw will also provide his highly regarded 2013 forecast.

“I am deeply honored to receive the Lawrence R. Klein Award for forecasting accuracy with my good friend and former colleague, Dave Greenlaw,” Berner said. “This award has special significance for me because Lawrence Klein was my mentor and dissertation advisor.”

“I am honored to receive this award and am especially gratified to share it with my former colleague Richard Berner,” said Greenlaw. “The market uncertainty of the past few years has presented forecasting challenges for our economics team, and our hope is Morgan Stanley’s clients have benefitted from these calls.”

The W. P. Carey School of Business at Arizona State University sponsors and judges the Lawrence R. Klein Award, regarded as one of the best-known and longest-standing awards in the economic profession. The annual award, named for Nobel Prize winner Dr. Lawrence R. Klein, goes to the individual or team with the most accurate economic forecast among the Blue Chip Economic Indicators survey participants for a multi-year period. The Blue Chip newsletter, edited by Randell Moore, has been published for more than 30 years and is regarded as the “gold standard” of business forecasts.

Berner and Greenlaw worked as a team at Morgan Stanley to earn the award for their 2008 to 2011 predictions. They beat out about 50 of the nation’s other top economic forecasters.

“The biggest challenge of the forecasts from 2008 to 2011 was to project the depth of the country’s economic contraction and then anticipate how the recovery would unfold,” explained Research Professor Lee McPheters of the W. P. Carey School of Business. “Berner and Greenlaw saw the downturn would be deeper than most analysts thought, and that set their forecast apart. They also had very small forecast errors on the unemployment rate, correctly expecting it to stay high into 2011.”

Dr. Henry Kaufman, president of Henry Kaufman & Company, who is well-known for his 20-plus years of work at Salomon Brothers, is scheduled to present the award to Berner and Greenlaw at a special event at the University Club in New York on Thursday, Oct. 18. The event starts at 6 p.m.

Berner is currently counselor to U.S. Treasury Secretary Timothy Geithner and is helping the Treasury Department to build the Office of Financial Research (OFR), which was created in 2010 to collect and standardize financial data, perform essential research and develop new tools to measure and monitor risk to the financial system. In December, Berner was nominated by the President to serve as the OFR’s director; that nomination is pending before the U.S. Senate. Before he joined the Treasury, Berner was managing director, co-head of global economics and chief U.S. economist at Morgan Stanley, where he worked for 12 years. He has also been a top economist at Mellon Bank, Salomon Brothers and Morgan Guaranty Trust Company. He served for seven years on the research staff at the Federal Reserve Board in Washington and was also a member of the Economic Advisory Panel of the Federal Reserve Bank of New York, the Panel of Economic Advisers of the Congressional Budget Office, and the Executive Committee of the board of directors of the National Bureau of Economic Research, among other impressive achievements.

Greenlaw is managing director and chief U.S. fixed income economist with Morgan Stanley. Before joining the firm, he served on the staff of the Federal Reserve Board in Washington for four years. He currently serves on the boards of several well-known economic organizations, including the Money Marketeers and the U.S. Monetary Policy Forum. Greenlaw was named Best Fed Forecaster in a Bloomberg Markets magazine survey and was the first back-to-back winner of the Dow Jones MarketWatch Forecaster of the Month award. He and Berner also have received forecasting-accuracy awards from the National Association for Business Economics and The Wall Street Journal, among others.

Greenlaw’s forecast for 2013 includes these predictions:

The U.S. economy faces two key challenges in the year ahead – the fiscal cliff and potential spillover of the European debt crisis.
Economic growth is expected to remain quite sluggish in 2013.
The unemployment rate should continue to linger at a high level over the course of the next year.
Inflation is likely to remain subdued.
The housing market is one of the few identifiable bright spots. House prices, sales activity and new homebuilding should all move higher in the year ahead.
Among the VIPs scheduled to attend the awards event this year are Randell E. Moore, executive editor of the Blue Chip Economic Indicators; Robert Mittelstaedt, dean of the W. P. Carey School of Business; and Trevor Bond, president and chief executive officer of W. P. Carey & Co. LLC.