HISTORIC PRESS RELEASE : Chancellor Gordon Brown Announces New Appointment to the Monetary Policy Committee [April 1999]

The press release issued by HM Treasury on 26 April 1999.

Dr Sushil Wadhwani has been appointed to the Bank of England’s Monetary Policy Committee, the Chancellor Gordon Brown announced today.

Dr Wadhwani is currently Director of Research at Tudor Proprietary Trading L.L.C., a fund management company. He is also a partner and a member of the management committee of the Tudor Group.

He was educated at the London School of Economics (LSE), was Reader in the Working of Financial Markets at the LSE from 1984-91 and subsequently Director of Equity Strategy at Goldman Sachs International from 1991-4.

Dr Wadhwani will take up his membership of the MPC on 1 June. He will replace Sir Alan Budd who has been appointed Provost of The Queen’s College, Oxford.

The Chancellor also announced that Ian Plenderleith (Executive Director, Financial Market Operations at the Bank) has been reappointed to the MPC for a further three year term.

Gordon Brown said:

“I am delighted that Sushil Wadhwani has agreed to join the Monetary Policy Committee. He will bring not only recognised expertise in the field of labour market economics, but also considerable experience of financial markets.

“I am very grateful to Alan Budd for his invaluable contribution to the Committee’s work in its formative first years, and wish him well in his new post at Oxford.”

NOTES TO EDITORS

1. Dr Wadhwani’s CV is attached.

2. The Chancellor announced the establishment of the MPC as part of a new framework for monetary policy on 6 May 1997.

3. Operational decisions on interest rate policy are made by the MPC. It comprises the Governor of the Bank of England, the two deputy Governors, two members of the Bank with responsibility in the Bank for monetary policy and market operations and four outside members with relevant expertise who are appointed by the Chancellor.

4. Members of the MPC are appointed to the Bank staff. However they may engage, with the permission of the Chancellor, in outside activities which do not present a conflict of interest. In Dr Wadhwani’s case, on taking up his new role he will cease to be an employee of Tudor.

CURRICULUM VITAE

Name: SUSHIL B WADHWANI

Date of Birth: 7 December 1959

Nationality: British

UNIVERSITY EDUCATION

The London School of Economics, Houghton Street, London WC2A 2AE

1. 1977-1980 BSc Economics
Special Subject: Mathematical Economics and Econometrics
1st Class

2. 1980-1982 MSc Economics
Econometrics
Distinction

3. 1985 PhD

EMPLOYMENT

1. Current Position – February 1995 – Date

Director of Research and Partner of The Tudor Group

2. March 1991- January 1995

Director of Equity Strategy at Goldman Sachs International Ltd Ranked as No.1 Strategist in the Institutional Investor Survey

3. October 1984- September 1992

Reader/Lecturer in Economics at the London School of Economics

(On special leave during March 1991 – September 1992)

OTHER ACTIVITIES

1. Member of HM Treasury’s Academic Panel on Product Markets (1995-1997)

2. Member of the Clare Group of economists (Since October 1986)

3. Research Fellow, Centre for Economic Policy Research (1986-1997)

4. Editorial Board member of New Economy (1994- )

5. Member of the Editorial Board of the Review of Economic Studies (January 1987- March 1991)

6. Assistant Editor of Economic Policy (October 1987 – October 1988)

7. Academic Consultant to Goldman, Sachs & Co. (July 1987 – February 1991)

8. Visiting Lecturer to City University Business School (MBA, Stock Exchange Programme, 1987-1989)

9. Academic Consultant to HM Treasury’s Company Sector Research Group (1985-1987)

Academic Awards

Allyn Young Prize
CS MacTaggart Scholarship
Clothworkers’ Company Exhibition
Gonner Prize
Raynes Undergraduate Prize
Sir Edward Stern Scholarship
Ely Devons Prize
Sayers Prize

Research Papers Published:

‘Incomes Policy in a Political Environment: A Structural Model for the UK, 1961-1980’, with M Desai and M Keil, in A Hughes-Hallett (ed), Applied Decisions Analysis and Economic Behaviour; Advanced Studies in Theoretical and Applied Econometrics, Kluwer and Neijhoff, 1984.

‘Wage Inflation in the UK’, Economica, May 1985.

‘Inflation, Bankruptcy, Default Premia and the Stock Market’, Economic Journal, March 1986.

‘The UK Capital Stock – New Estimates of Premature Scrapping’ with Martin Wall, Oxford Review of Economic Policy, August 1986

‘The Effect of Inflation & Real Wages on Employment’, Economica, February 1987

‘The Macroeconomic Implications of Profit-Sharing: Some Empirical Evidence’, Economic Journal, March 1987.

‘Profit-Sharing & Employee Share Ownership’, (with Saul Estrin and Paul Grout), Economic Policy, April 1987.

‘Profit-Sharing as a Cure of Unemployment: Some Doubts’, International Journal of Industrial Organisation, March 1988.

‘Profit-Sharing & Meade’s Discriminating Labour-Capital Partnerships: A Review Article’, Oxford Economic Papers, September 1987.

‘Unions, Wages and Employment: Some Test on Micro-Data’, with S J Nickell, European Economic Review, paper and proceedings, 1988.

‘Incomes Policies: The British Experience’, in the International Economic Association volume on Incomes Policies.

‘The Stock Market & Investment: A Comparative Study’ with Mark Mullins, invited paper at International Seminar on Macroeconomics, European Economic Review, 1989.

‘The Economic Effects of Industrial Relations Legislation since 1979’, with W Brown, National Institute Economic Review, February 1990 (Clare Group Paper)

‘The Effects of Profit-Sharing on Employment, Wages, Stock Returns & Productivity’ with Martin Wall, Economic Journal, March 1990.

‘Insider Forces & Wage Determination’, with Stephen J Nickell, Economic Journal, June 1990.

‘Transmission of Volatility Between Markets’, with Mervyn A King, Review of Financial Studies, 1990.

‘The Effects of Unions on Productivity Growth, Investment & Employment: A Report on Some Recent Work’, British Journal of Industrial Relations, November 1990.

‘The Effects of Unions on Investment & Innovation: Evidence from WIRS’, with S Machin, Economic Journal, March 1991.

‘The Effects of Unions on Organisation Change & Employment: Evidence from WIRS’, with S Machin, Economic Journal, June 1991.

‘A Direct Test of the Efficiency Wage Model Using UK Micro-Data’, with Martin Wall, Oxford Economic Papers, 1992

‘Semi-parametric Estimation and the Predictability of Stock Market Returns: Some Lessons from Japan’, (with E Sentana) Review of Economic Studies, 1991

‘Employment Determination in Industry: Evidence from Micro-Data’, with Stephen J Nickell, Review of Economic Studies, 1991.

‘Productivity Growth in Britain, 1974-86: Evidence from Company Accounts Data’, with S Nickell and M Wall, European Economic Review, 1992.

‘Feedback Traders & Stock Return Autocorrelations’, with E Sentana, Economic Journal, March 1992.

‘A Heteroscedastic Factor Model of Asset Returns & Risk Premia with Time-Varying Volatility: An Application to 16 World Stock Markets’, with M A King and E Sentana, Econometrica, 1994.

‘The US Stock Market and the Global Economic Crisis’, National Institute Economic Review, No.167, January 1999.

Research Papers (Unpublished)

‘Risk & The Predictability of Stock Market Returns: Evidence from the UK’, with O Attanasio, LSE Financial Markets Group Discussion Paper No.49.

‘Can the CAPM Explain Why the Dividend Yield Helps Predict Stock Returns?’, with O Attanasio.

‘The Determinants of Wage Flexibility; Some Lessons from a Comparison Between the UK & Japan Using Micro-Data’, with G Brunello, Centre for Labour Economics, 2nd revision with Quarterly Journal of Economics.

‘The Effects of Inflation & Interest Rates of Stock Returns: Evidence from 3 Centuries of UK Data’, with M Mullins, LSE Financial Markets Group Discussion Paper.

‘Some International Evidence on Labour Cost Flexibility & Output Variability’, with Lawrence H Summers, Centre for Labour Economics Working Paper No.981.

‘The Effect of the Term Spread, Dividend Yield & Activity on Stocks Returns; Evidence from 15 Countries’, with M Shah, LSE Financial Markets Group Discussion Paper.

‘Has the ERM reduced the Cost of Capital?’ with E Sentana and M Shah, LSE Financial Markets Group Discussion Paper.

Other Published Papers

‘Will Profit-Sharing Work?’ with Saul Estrin, Employment Institute Pamphlet, October 1986.

‘On the Inefficiency of Financial Markets’, LSE Quarterly, March 1988.

‘Comment’ on R Roll ‘Price Volatility, International Market Links & Their Implications for Regulatory Policies’, Journal of Financial Services, 1989