It was simply elevating to give my first lecture in Introduction to Macroeconomics, in a full auditorium, with an audience of 70 students!! After we were moved to zoom due to Omicron and I have not seen my students since late December, it was simply a joy to be in class again in the #businessadministration and #economics double major BA degree at the international school at Reichman University (IDC Herzliya).
The topic of my class was the history of the development of macroeconomics, from the Great Depression until today, where the main characters discussed in my lecture were US presidents Herbert Hoover and Franklin Delano Roosevelt, The economist John Maynard Keynes who is the “father of macroeconomics” who articulated the courageous decision and actions of Franklin Delano Roosevelt into a detailed economic theory that has served the world in two future crisis, that of 2008 and Covid-19 crisis.
I have also presented the connection between the Great Depression and the rise of Hitler and the Nazi regime, and the second world war. My student have learned the importance of government intervention at time of recessions and depressions. It is very clear that I will shortly need to add to the story the impact of the Russian-Ukraine war which is a huge human crisis, which starts and will have global economic implication.
I have started my lecture with explaining to my students that the management of economic crisis is a story of leadership. I have ended my lecture with explaining to my students who I know will all take leadership position in the future if they wish to (most of grads of business and economics end up in leadership positions in the private and public sectors), and as such they should take responsibility in their own decisions when they will be leaders.
After the class we gathered for informal chat, and took this lovely pictures. I am proud to present to you a generation of young future leaders!

In the picture:

Jareth Jawno   Yoel Altman,  Ariel Hoffman, David Kresch, Bracha,  , Maya Zadik Zvi Fragmlich El-ly Namatinia
Yael Hadass

#leadership #management #future
#economics #macroeconomics #students #college #university

So wonderful to celebrate with my students the end of their degree in Business Administration and Economics at Reichman University. It has been amazing 3 years.

As the head of admission committee to the program in #businessadministration and #economics at IDC Herzliya I read their personal statements when they applied to this program.

As their teacher I learned to know them while they were introduced for the very first time to the profession of Economics as I taught them principles of micro and principles of macro.

As their head of the program I helped them solved issues through their degree, and as their policy paper thesis advisor I was fortunate to see the results of all their efforts, how from high school and army grads that I saw for the first time 4 years ago when I read their applications, they became professional talented economists.

This all happened even though we have had a world crisis and war in Israel in during this time.

The biggest joy in this evening was when I talked with each and every one of my students and learned that they are either employed or considering offers, and some are going to graduate degree. I was so proud that at time like this, when only few months ago we had double digits unemployment my students have succeeded to keep up and be active in the labor market. I am so proud that the labor market understands their unique quality and I am sure that we will hear about all of them in the future.

I am also super proud at our alumni, who I heard that helped many of my students land their current job. We have a true collaboration in this program who brings such talented people together and the collaboration continues years after the degree has ended.

So proud of you all and wish you the very best because it is what you deserve!

Anshel Axelbaum Mikhael Myara Nir Zaslavsky Eli Fidler Danna Leitman Nicola Fihrer Gabrielle Richmond Alice Bouaziz Quincy Penberg Eitan Dooreck-Aloni Yoav Hochberg Zachary Okun Itai Zer Sara Saban Farrah Zhao Roy Shavit Tamara Freiman Shannon Zulberg Ray Gordon Shai Katz

#students #education #job #future #yaelhadass #college #university

When I was a student of Economics most of my teachers were men. In fact I don’t remember ever taking a class in any degree in Economics with a female professor, mostly because there were very few women professors of Economics at that time. I am happy to say that more women are entering the field of Economics and they can set an example to a new generation of young women that will train themselves in the field.

How many women you know with a PHD in economics? I am glad to introduce my colleagues at Reichman University (IDC Herzliya)

Dr. Baudot-Trajtenberg Nadine, PhD Harvard University, former deputy Governorof בנק ישראל Bank of Israel

Dr. Osnat Lifshitz, PhD Tel Aviv University, Vice dean, Tiomkin School of Economics, Reichman University (IDC Herzliya)

Dr. Shiri Zemah Shamir, PhD in Economics from the joint program of the Technion and Haifa University, head the Economics – Sustainability track. The school of Sustainability, Reichman University (IDC Herzliya)

Dr. Tali Regev, Phd Massachusetts Institute of Technology, Tiomkin school of Economics, Reichman University (IDC Herzliya)

Dr. Yael Hadass, PhD Harvard University , Academic head of Economics at the double major degree of Business Administration and Economics international school Reichman University (IDC Herzliya)

#phd #teachers #school #business #economics #colleges

Few days ago I met the new class of undergraduates, the biggest so far (over 70 Students) in the #businessadministration and #economics double major degree at the IDC Herzliya – RRIS at Reichman University (IDC Herzliya).

🚀At the end of my presentation which focused on what is Economics and tips on how to understand the structure of the degree, I explained to the new students that one of the best things of their degree is not only courses and grades, but their fellow students not only in their year but also in previous years, from whom they will learn a lot and collaborate in the future, and proudly I present this picture of the graduating class, in which not all class members could participate since they were stuck in their home countries due to Covid-19.

👨‍👩‍👧‍👦I explained to my new students that we are a program but also a community that help each other.

🥇I am very proud both of the graduating class and of our current students and alums. If you want to see how well our graduates are doing just click on their names that I tagged below!!

And to my dear graduates please write in the comment a welcome note or a Tip for the new students in our program!!! I wish you all a great success in your career!!

Zachary Okun Anshel Axelbaum Alice Bouaziz Sara Saban Tamara Freiman Nicola Fihrer Farrah Zhao Adil Aldao Gabrielle Penn Roy Shavit Quincy Penberg Eitan Dooreck-Aloni Mikhael Myara Yoav Hochberg Eli Fidler Danna Leitman Noa Agami Aharon Shapiro Michael Finkelstein Simon Rouxel-Haouzi Dror Kogot Nir Zaslavsky Isaac Leyne Noah Oberlander Itai Zer Jochai Mor Jordana Chriqui
Zvi Eckstein Yaniv Yedid-Levi
#university #students #community

A loan is a permission to use money that you do not own. When a person takes out a loan he is actually buying the right to use money that is not his. The payment for the use of the loan is called interest. The longer the loan is given, the higher the cumulative interest payments, which are usually paid monthly or quarterly, because this authority is given for a longer period of time.

The language of loans
It is important to understand the language of loans. I will start with the basic words one needs to know to take a loan.

Principle – the amount that will go into our account on the day the loan is taken. For example, if we wanted to get a loan of 10,000 NIS, then those 10,000 NIS are called a principal.

Interest – the payment for the right to use money that is not ours (the principle).

Example: If we take a loan of NIS 10,000 at an interest rate of 10%, then at the end of the year we will have to return NIS 10,000 on account of the principal and another NIS 1,000 which is the interest payment, for the right to lend the amount we took as a loan.

Central Bank Interest Rate This is the interest rate at which the Bank of Israel lends or borrows money to the commercial bank and it is determined by the Bank’s Monetary Committee. At the time of writing, the Bank of Israel’s interest rate is 0.25%.

Prime interest rate:

P interest rate determined in each bank based on the Bank of Israel interest rate plus a spread. Today the average margin is 1.5%. Each of the commercial banks determines the margin itself. When it offers banking products such as loans then it takes the prime P interest rate as a basis. That is, at the time of writing these lines the prime interest rate is 0.1 + 1.5 = 1.6%.

Interest payments on loans are in many cases P + x%.

For example: if the annual interest rate on a loan is P + 5.5% then the proposed interest rate on the loan is: 1.6 + 5.5 = 7.1% because the prime interest rate is 1.5 + 0.1 = 1.6%.

Spitzer Loan – The loan repayment is based on a fixed monthly payment throughout the loan period. At the beginning of the period, the interest component in each payment is high, and it decreases in each payment, and at the same time, the principal component in payments increases over time. (Excluding inflation linkage differences).

There are different types of loans that differ by the interest rate of loans and the duration of the loan and the frequency of principal repayments and interest.

Balloon loan – a loan that during its entire period only interest payments are paid, while the principal is repaid in full at the end of the period. Sometimes the interest is also paid at the end of the period. This is a very risky loan if it is not known in advance that a sum of money is supposed to come in just at the end of the loan period (Excluding inflation linkage differences).

The price of the loan is always a percentage of the total amount, called the principal.

Example of a balloon loan:

Suppose we took out a loan of NIS 10,000 for 5 years. The terms of the loan are that we pay an annual interest of 5%, and the principal, that is, NIS 10,000, we will return to the bank at the end of the period.

If we take the loan for five years, and we are asked to pay the interest on the loan at the end of each year. At the end of the period, we will also repay the principal i.e. 10,000 NIS. I.e. our cost of using money that is not ours is 500 times 5 i.e. 2500 NIS which is actually a quarter of the total loan amount.