Renowned Spanish scholar in economics Jesus Huerta de Soto visited the Financial University from 27 to 30 April.
Professor de Soto had graduated from Complutense University of Madrid - one of the oldest European Universities founded in 1293. Professor de Soto has degrees of Doctor of Law, Doctor of Economics and Business of Compultence University and MBA degree in Actuary Mathematics at Stanford University (USA). From the year 2000 Professor de Soto works at Rey Juan Carlos University of Madrid. He is the author of 7 books and hundreds of articles translated into English, Arabic, Italian, Chinese, German, Portugal, Romanian, Russian, French and Czech languages. Four of his books were published in Russian.
Professor de Soto is one of the leading representatives of the Austrian Political Economy School. For his academic works he was awarded King Huan Carlos International Prize for Economics, Adam Smith Prize and Franz Kuechel Prize for Excellence in Economic Education.
On 29 April Professor de Soto made a scientific report at the enlarged session of the Financial University Academic Council.
In his opening address Professor M. Eskindarov, Rector of the Financial University, heartily greeted the high Spanish guest and emphasized that this visit took place during a remarkable period of time – the Year of Spain in Russia and Year of Russia in Spain. He expressed hope that fruitful cooperation in educational and research spheres between the Rey Huan Carlos University and the Financial University and academics of the two universities would be successfully developing.
Rector announced the Decision of the Academic Council of 28 January on awarding Professor Jesus Huerta de Soto the title of Doctor Emeritus of the Financial University under the Government of the Russian Federation. This title marks great achievements of Professor de Soto in economic theory and economic policy, primarily research of the problems of money and credit, his contribution to developing scientific contacts between the scholars from different countries of the world and his will to develop cooperation with the Financial University. During the solemn ceremony Professor de Soto was awarded the Diploma of the Doctor Emeritus of the Financial University, doctor’s gown and trencher cap.
In his response speech the Spanish scholar warmly thanked the Rector of the Financial University and members of the Academic Council for the honor and pledged to further contribute to promoting cooperation between Russia and Spain, the Financial University and Rey Huan Carlos University.
After that Professor de Soto presented to the Academic Council a scientific report “Financial Crisis, Banking Reform and Future of Capitalism”. He called the attention of the public to the fact that Austrian economists were the only theoreticians who managed to predict the Great Depression of 1929 and the stagflation which followed the so-called “oil crisis” of 1973.
In Professor de Soto’s opinion economic crises are not inherent in the market economy. Economic crises to a great extend are the result of privileged fractional banking system. The causes of the modern financial crisis are in his view linked first of all with the expansion credit policy of FRS that resulted in “bubble” on the real estate and other markets and due to low interest rate caused lower savings rate.
Professor de Soto proposes original ways of solving problems of world economy and elimination the bases of crises, among them privatization of money and return to pure gold standard, establishment of hundred percent provisions for demand deposits and abolition of state banks that in his words are the only “socialist planning bodies” operating in modern market economies in monetary sector .
The audience listened to his report with great interest and asked many questions to which Professor de Soto gave exhaustive replies.
Mr Javier Burgos, Chief Counselor for Economics and Trade of the Spanish Embassy in the Russian Federation, attended the solemn ceremony and meeting of the Academic Council.
During his short visit to Moscow Professor de Soto also addressed the Second Annual All-Russia Student Scientific and Practical Conference “Financial Markets of the Future”, the inter-chair scientific workshop “Theory of Dynamic Efficiency” and an open lecture “Nature of Austrian School’.
The Spanish Professor expressed his satisfaction with his meetings with the Financial University’s management, faculty members and students and appreciation of creative spirit of the discussions.