# 241
The Legend of Return
Chapter 241. Outlaw’s Way
‘Question?’
Professor Lee Dong-jin was dumbfounded and looked at the student who raised his hand.
It is not uncommon for students to ask questions to professors from the first day of the semester.
It was normal for me to sigh out of my mind at the class curriculum I had thrown.
Today is a chilling spot.
I had to make them strong by bombarding the students with poor presentations.
What I felt while studying in the US was fear.
I was used to the Korean-style class method, and I even suffered from a panic disorder due to the presentation I received.
The PhD program at New York University was not easy.
I searched through so many materials that I vomited.
In particular, the global strategy major is not lacking even if it is called the total essence of business administration.
To put it simply, it was a study of how to work in the world and survive in that world.
After earning a doctorate, he became a professor at Hankuk University to give back the fruit to his juniors.
The teaching method has drastically changed.
Rather than mechanical passive learning, I pursued a class method that thinks for myself.
I chose the method of nurturing Spartan soldiers per hundred.
By the time I graduated, I made it to the point where I would not be ashamed to sell the name of Hankuk University.
This was the reason why students of the Department of Business Administration at Hankuk University were doing well in each company.
Active exploration and problem-solving skills are absolutely required in the future society.
I didn’t want to hear the sound of an incompetent professor.
After the semester ends, outstanding students appear.
I focused on teaching them and introducing them to academia or to various companies.
It was the biggest reward as a professor.
Suddenly, a male student appeared with his hand raised and said he had a question.
He is a handsome man that is hard to find in the management hall.
It was a familiar face, like a face I had seen somewhere.
‘Law and Jang Tae-san?’
figured out who
He was a talented person who saved the Department of Law, which had been broken by the Department of Business Administration.
“This is the first time a law student has taken my course. tell me.”
Law professors were highly praised at drinking parties.
It was evaluated that he was a student like the pivot that united law students in half a year.
“Professor, I have a few questions about the lecture this semester.”
“Is this my lecture? What are you curious about?”
I liked the active attitude.
In the first year, most of the students were intimidated, but the law students were full of energy in their voices asking questions.
It was the spirit of youth.
“Professor, how far do you predict the impact of this financial crisis will go? Do you know about Fed Chair Ben Bernanke’s career and career?”
“yes? Is it Bernanke?”
‘Are you testing me?’
Lee Dong-jin was a little taken aback.
Undergraduates will know about Ben Bernanke, who is being talked about in the media these days.
However, few undergraduate students ask about Chairman Bernanke’s major and future prospects.
The connection method was unique.
“I understand that you have completed your doctoral course in business administration at New York University. In the current crisis situation, I wonder if you support the Chicago School, the vanguard of neo-liberalists who value monetary policy. Personally, I know that New York University’s academic tradition is also following the Chicago School.”
‘what? This guy???’
It was a difficult question to ask at the level of the current first year business administration department.
Until now, the Chicago School of Economics based on the principle of free competition has been the mainstream.
New York University professors followed suit.
Naturally, Professor Lee Dong-jin also became a believer.
It pursued a policy that emphasized the market function and limited the role of the government.
Riding on the wave of world liberalization, the business community also followed the same path.
“Personally, when it comes to international trade, I like the Chicago School, which can utilize the division of labor in a relatively appropriate place. Matter is finite. It is a time when natural growth and culling through competition are needed in terms of capital efficiency and distribution. The Korean economy has benefited enormously from free market competition and has grown.”
Lee Dong-jin calmly opened his mouth.
On the first day of the lecture, I had an unexpected lecture.
It was heartwarming.
It was regrettable that the other person was a law student, not a business school student.
“Professor, do you admit that the current financial crisis has occurred as a side effect?”
“Admit it?”
“The Chicago School is a school that preaches based on the philosophy of laissez-faire. But like Professor Christopher Sims, the Princeton school is based on statistics. In times of crisis, I believe that economic policies should be followed based on empirical research based on existing economic data. This is a global crisis. The subject matter is broad for undergraduate students to cover. Rapid data updates and economic policy revisions are also required on a turbulent battlefield.”
“Jang Tae-san is a student, right?”
“yes. I am Jang Tae-san, a freshman in law.”
“I admit that the Chicago School is not a perfect theory. But I don’t think you’d agree that it’s a global crisis. Although the US subprime crisis is underway, the US has sufficient fiscal capacity as an issuer. I think it will pass for a while.”
“The pursuit of national interests and the interests of financial companies are different. The individual’s desires inherent in it must also be controlled to some extent. The current crisis has come due to the laissez-faire maximization of private interests. We need a countermeasure.”
“If that happens, the free market economy that has been achieved so far will fall into crisis. Capital markets are designed to keep growing.”
“Foam needs to be removed from time to time. Fed Chairman Ben Bernanke knows that.”
“Maybe? The Fed’s monetary policy is now left to the market economy. There will be mergers and acquisitions between financial companies on Wall Street, but I don’t think the Fed will intervene too much.”
“……”
The lecture room was enveloped in silence between the two of them.
No one dared to step out.
I diagnosed the current economic crisis with the stories of schools I have heard about in textbooks.
It was not at the level of conversation that freshman undergraduate students could have.
‘Jang Tae-san? what? Were you also interested in management?’
Ayura was on the verge of fainting at the scene where a law student was arguing with a professor studying abroad in the business department.
This was a rumor.
If someone’s knowledge string is short, it’s a plate that will collapse right away.
On that battlefield, Jang Tae-san fought fiercely.
It is an expression full of confidence that does not back down an inch.
“professor. I will repeat my first question about Ben Bernanke’s major. Do you know?”
“…I know you were a professor of economics at Stanford University.”
“There was also a time when I was a professor at Princeton University. And as a professor, his research on the role of the Federal Reserve Bank and the Great Depression made him a giant in macroeconomics.”
“I know. It has also made extraordinary achievements in the field of econometrics.”
‘What is this guy? Are you studying abroad? What is it?’
It was something Lee Dong-jin had only heard about when he was a student at New York University.
I prepared for the doctoral course, but I did not have a close relationship with the professors.
Since they were New York University professors who were followers of the Chicago School, they were not friendly towards the Princeton School.
The market economy situation at the time also sided with the Chicago School.
“Chairman Bernanke is an expert on the Great Depression. You should know why he sits on the Fed chair.”
“The Republican Party has placed great importance on financial regulation and financial supervision from the beginning. He’s a character that President Bush likes.”
“no. The United States had foreseen this event to some extent.”
“Foreshadowing? Are you saying that Taesan Jang is comparing the current crisis to the Great Depression?”
“yes. It is almost on the same level as the Great Depression.”
“Puhahahahahahahaha.”
Lee Dong-jin burst into laughter.
It suddenly dawned on me that I had had an in-depth conversation with a student who had read a few awkward economics books.
Now I’m only twenty years old
His experience in the world was insignificant, and his studies were weak to discuss the real economy or the market economy.
I thought that I was absorbed in the conversation with the first year undergraduate student I was sharing for the first time.
‘It’s smart… but it’s still a long way off.’
I didn’t feel the need to share any more foolish words.
The economy is in crisis now, but it wasn’t a Great Depression.
It was at the level of the flu, like the Asian financial crisis.
The investment losses of large financial companies have been exaggerated.
At this time, through mergers and acquisitions, financial companies naturally increase their capital and size.
It was a natural economic phenomenon.
The economic knowledge Professor Lee Dong-jin knew said that.
This is something I acknowledged even when I had a conversation with professors a few days ago.
It wasn’t a topic worth arguing with undergraduates.
“professor. The Fed will start QE soon.”
“what? QE?”
Prof. Lee Dong-jin unknowingly came out with short words.
‘Do you know the quantitative easing policy? What is this guy?’
It is an unrealistic economic policy that appears in textbooks.
In 2008, graduate students, let alone undergraduates, would like to mention a few.
Jang Tae-san, who uses almost privately-accepted economic policy terminology.
gulp.
Professor Lee Dong-jin swallowed dry saliva.
From the start, I wasn’t at all intimidated or agitated.
He was confident in his words and actions.
‘genius?’
All of a sudden, a question popped in.
There were geniuses who had no choice but to acknowledge it while living in the world.
Although he was on the smart axis, there were many crazy geniuses among American professors.
I felt the strong feelings I felt then.
Tension ran through his blood.
His eyes changed ferociously.
If you answered incorrectly, you could become a professor trampled on by a student.
“Jang Tae-san, I won’t treat you as a joke from now on.”
The voice came out hard.
“I have only told the truth from the beginning.”
Lee Dong-jin got his posture right.
“How much do you know about quantitative easing?”
“It stands for Quantitative easing. It refers to a policy in which central banks of each country directly supply liquidity by purchasing various financial assets, such as purchases of government bonds for economic stimulus, in order to relieve sudden financial market crunch.”
I was getting the content right.
“Do you know that if the US uses quantitative easing, the repercussions will be huge? Quantitative quantification by the world’s key currency… Japan also implemented a quantitative easing policy in the days of zero interest rates, but it did not have any effect. By the way, the Federal Reserve Bank implements quantitative easing that raises the price of raw materials and raises the price? Can you prove that?”
It was thoroughly confronted with the opposite.
After a flirtatious conversation, the undergraduates watching will spread rumors.
Not only in school life, but also as a professor, I could have suffered tremendous damage to my reputation.
“Quantitative easing due to Japan’s long-term recession is qualitatively different from that of the United States.”
“What do you mean?”
“The long-term recession in Japan is the result of a long-term stagnation caused by a declining population. The benefits of quantitative easing do not go back to borrowers who have been handed over to real estate. In contrast, US-style quantitative easing will work.”
“Why are you sure?”
“Because the United States is the issuing country.”
“What do you mean?”
“The policy interest rate will be 0% in the future. In conditions of ultra-low interest rates, the monetary policy that the Fed can take is extremely rare. The finances are also poor. This means that indirect liquidity control by adjusting the base rate does not work. In this case, the premium of being the issuing country will provide a tremendous amount of currency to the market.”
‘Does that make sense? The Federal Bank?’
Lee Dong-jin fell into doubt even though Jang Tae-san’s words were absurd.
The rupture heard from Wall Street was unusual.
It could have been quite possibly.
However, the United States is a leader in free competitive trade in the world.
‘Are you saying you know? Do you know how valuable this prediction is now?’
Anticipating Federal Bank policy would have been enormously beneficial.
If you buy high-quality corporate bonds in a panic-stricken market, the yield is no joke.
Stock investment and interest rate investment were also not easy.
The goose that lays the golden egg is not even a metaphor.
Lee Dong-jin’s hands were wet with sweat.
Smart business students tried to cram it into their heads, but they didn’t know what it meant.
It was a conversation as difficult as understanding the complexities of macroeconomics and microeconomics.
Jang Tae-san explained it easily.
It was like the consideration of an absolute being who told me to take care of myself.
“How?”
Now I was curious about Lee Dong-jin.
Jang Tae-san’s words of predicting the future burned his throat.
“It is predicted that liquidity will be directly supplied to the market, rather than indirect interest rate changes such as purchases of government bonds or RP Monetary Stabilization Bonds.”
“What are the standards and targets?”
“With large financial institutions running out of liquidity, the Fed is not going to cover anything. Wouldn’t you like to directly supply corporate bonds, MBS, CDO, etc. that you have not dealt with before?”
The guy who smiles and asks questions is now scary.
It was clearly penetrating financial policy.
This was a researcher’s level beyond a graduate student.
“Purchasing private assets with default concerns? The Fed doesn’t deal with private banks. That’s their tradition.”
Lee Dong-jin’s voice rose.
“You look ruined, but what can you do?”
“Damn it?”
“Economics is psychology. The color we feel here and the fear we feel on Wall Street are different. It is now in the middle of a war where bullets are pouring in. But what about tradition? When was war conscientious? hahahahahahahaha.”
This time, Jang Tae-san laughed.
thud!
Lee Dong-jin received a strong blow to the head.
A few days ago, I received a phone call from a NYU alumnus and heard that I had been fired.
It comforted me, but it didn’t touch my skin.
A professor at Hankuk University had a slim chance of being fired until Korea collapsed.
However, Jang Tae-san’s words penetrated the skin.
“In that case, wouldn’t it be more efficient to intervene in the foreign exchange market?”
“why?”
“Why? Because that’s an effective way to calm the market unrest so far…”
“Outlaws don’t have to do that. Let go of the quickest and most effective way and pretend to be a gentleman? Isn’t that… the hope of naive economics students?”
He didn’t talk behind his back, but Lee Dong-jin understood clearly.
Jang Tae-san is smiling.
Like a professor…
I omitted the word.
“Haa……”
A long sigh escaped Lee Dong-jin’s mouth.
A keen sense of defeat.
‘That guy…is a dangerous monster!’
