Founded in 2007, the Center for Financial Economics (CFE) was jointly conceived by Department of Economics faculty and Johns Hopkins alumni in the finance industry with the goal of producing cutting-edge education and research in finance. In early 2007, this seemed like a good idea. The financial crisis that ensued emphatically underscored the all-pervasive role of finance in the economy and the need for better thinking and training in finance.
From the outset, the founders set out to do something more than create another finance department. The CFE was founded on the principle that both the theory and practice of finance had strayed too far from economic underpinnings. The mission of the center is to bridge the gaps between economics and finance, rocket science and social science, theory and practice, and the broad liberal arts perspective versus finance specialization.
The center’s founding mission to “bridge the gaps” is uniquely well suited to the times. Our students and faculty are in an ideal place to understand and shape the turbulent process now re-making finance in the world’s financial centers, capitals, and research universities.