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Kogod Professor Valentina Bruno Explores the Architecture of Finance in Installation Ceremony

Professor Bruno’s discussion of banking and monetary policy was part of a ceremony celebrating her as the school’s new Eminent Scholar Chair in Finance.

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Kogod School of Business professor of finance Valentina Bruno speaking at her installation ceremony.


 

While preparing for her inaugural lecture as Kogod’s new Eminent Scholar Chair in Finance, Professor Valentina Bruno did what any good economist would do—she ran a survey. She asked her former students to send back a few words that they thought describe her best, as well as notable memories from her classroom. Her students wrote back with notes about her great suits, her references to ‘Mama Fed,’ and the time she mentioned that traffic lights are only a suggestion in her home country of Italy.

Most importantly, however, the top word they described her with was ‘inspiring.’ Speaking at the January event celebrating her installation as an endowed chair, Bruno joked that this reflected the survey’s selection bias; however, the packed room she spoke to suggests otherwise. Attendees included AU’s provosts, members of the alumni board, staff and faculty, and Bruno’s daughter, as well as students past and present who had gathered to celebrate her achievements.

“We have former students who have flown in from all over the country because they love Valentina,” said Kogod dean David Marchick in his opening remarks.

Bruno is one of three professors to become an Eminent Scholar Chair after a significant gift from the Kogod family. The first, marketing professor Sonya Grier, was celebrated last November; a third Eminent Scholar Chair in Sustainability will join Kogod’s faculty in the fall of 2024. As the Eminent Scholar Chair in Finance, Bruno will be granted additional resources and support to pursue further research endeavors.

Her work so far has been groundbreaking. Bruno is a macroeconomics expert whose research has been in major academic journals, on the front page of The Economist, and at the center of a G20 meeting. Her studies of the United States dollar’s impact on a global scale skyrocketed her into international recognition, and her work is used to inform domestic and international monetary policy. As Dean Marchick recalled, she has been bold ever since leaving home to pursue a PhD in London, and her achievements reflect that boldness.

“When she broke through, she broke through big,” said Marchick.

Valentina Bruno is a star in any setting; anywhere she goes, she lights up the room.”

David Marchick Purple

David Marchick

Dean, Kogod School of Business

In academic tradition, Bruno marked her installation as an Eminent Scholar Chair by presenting a lecture titled “The New Architecture of Finance.” In it, she used architectural examples from around the world as metaphors for banking and financial policy. For instance, the thirteen-story wooden Sutyagin House in Arkhangelsk, Russia could be utilized as a metaphor for excessive bank leverage; the bank is the building’s foundation, while its leverage is represented by the additions that ultimately led to a towering structure. Though banks can increase their leverage by offering more lending options and building up their influence, excessive lending can be risky. Aptly, the Sutyagin House no longer exists, as it was deemed a fire hazard and destroyed in 2008.

Bruno then brought the audience’s attention to London’s Millennium Bridge to discuss how traders and consumers react to price changes. When the bridge opened in 2000, Londoners found that it swayed noticeably and quickly deemed it the ‘Wobbly Bridge.’ Naturally, pedestrians on the bridge would alter their stance to maintain balance against the movement; however, this exacerbated the problem as the bridge swayed more in response to these changes. Bruno likened this to early reactions to changes in the stock market and similar economic downturns; people will often react to these changes by selling their stock or taking other steps to protect their assets, inadvertently making these price dips worse in the process.

In the spirit of architectural metaphors, Bruno closed by showing the audience a picture of the Hub of Huts, a building in Italy’s Hotel Hubertus that appears to include upside-down rooms.

The structure is meant to invoke the sight of a village reflected in water, even as the inside is completely normal and accessible. The point, Bruno explained, is that many of the economic issues she has explored over the years are a matter of perspective and that gaining perspective leads to a deeper understanding of finance as a whole.

Bruno’s lecture was not only informative from her perspective as a researcher but also from her insights from years of teaching. She explained that some of her students have gone on to pursue research careers of her own, and their successes remind her why the work she and her fellow faculty members do is so important.

Being a teacher is about observing students’ lives and careers as they evolve. It’s also about opening your door to them in their darkest moments, and sometimes just reminding them to smile.”

Valentina Bruno

Valentina Bruno

Professor and Eminent Scholar Chair in Finance, Kogod School of Business

As Bruno wrapped up the event to thunderous applause, she took a moment to express her gratitude for the people in her life who had come to celebrate this milestone and who have supported her all along the way.

“Thank you for believing in me and for giving me the opportunity to take on a new challenge,” she said.