Professor Lucio Sarno
Sir John Cass Business School, Head of the Faculty of Finance
Professor Lucio Sarno is Associate Dean and Head of the Faculty of Finance at Cass Business School. He is an expert in exchange rates, a subject on which he writes prolifically and on which he is routinely called for advice by governments, international organisations (including the US Federal Reserve, the European Central Bank and the International Monetary Fund) and financial companies around the world.
His writings and advice have influenced several matters of policy, including the operating procedures of central banks in the foreign exchange market, the design of exchange rate policies, the prediction of currency fluctuations and currency crises, the use of capital controls, the management of public debt and the assessment of currency risk.
Professor Sarno has pioneered research which has overturned the view that economic theory is of little use in predicting exchange rate movements. He has documented how the evolution of currencies can be understood better in terms of very simple economic intuitions, thereby helping governments and individuals to an improved understanding of changes in the purchasing power of their currencies and how to hedge against currency risk. His recent research supports the proposition that if a country runs a persistent deficit then its currency will depreciate, thus improving its competitiveness in selling its goods and services abroad and ultimately bringing it back into surplus.
Before joining Cass Business School, Professor Sarno held academic positions at several universities, including the University of Warwick, the University of Oxford and Columbia University. He is the author of more than 70 articles in renowned economics and finance journals, including the Journal of Economic Literature, Journal of Finance, Journal of Financial Economics, Review of Financial Studies and Journal of Financial and Quantitative Analysis. He has also authored and edited several books, including The Economics of Exchange Rates.
Since 2005, Professor Sarno has featured in the Institute for Scientific Information Essential Science Indicators, a selection of the top one per cent of academics in the economics and finance professions based on the total number of citations over a 10-year rolling period. He was awarded the Inquire UK Best Paper Prize 2009/10 for his article on 'Spot and Forward Volatility in Foreign Exchange' and the Centre for Economic Policy Research/Essential Science Indicators Prize for the Best Central Bank Research Paper 2007 for 'Asset Prices, Exchange Rates and the Current Account'.
He was recently listed in a worldwide ranking of the Best 40 Business School Professors under 40 by Poets & Quants, an online business education magazine.