Paul Allen McCulley (born March 13, 1957) is an American economist and former managing director at

PIMCO Pacific Investment Management Company LLC (PIMCO) is an American investment management firm. While it has a specific focus on active fixed income management worldwide, it manages investments in many asset classes, including fixed income, share ca ...

. He coined the terms " Minsky moment" and "

shadow banking system The shadow banking system is a term for the collection of non-bank financial intermediaries (NBFIs) that legally provide services similar to traditional commercial banks but outside normal banking regulations. S&P Global estimates that, at end-2 ...

", which became famous during the

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

. He is currently a senior fellow at

Cornell Law School Cornell Law School is the law school of Cornell University, a private university, private, Ivy League university in Ithaca, New York. One of the five Ivy League law schools, Cornell Law School offers four degree programs (Juris Doctor, JD, Maste ...

and an adjunct professor at Georgetown McDonough School of Business. He was also a generalist portfolio manager and member of the investment committee in the Pimco Newport Beach office. In addition, he headed PIMCO's short-term bond desk, led PIMCO’s cyclical economic forums and was author of the monthly research publication, Global Central Bank Focus. Prior to joining PIMCO in 1999, he was chief economist for the Americas at UBS Warburg. During 1996–98, he was named to six seats on the Institutional Investor All-America fixed-income research team. He has 25 years of investment experience and holds an M.B.A. from

Columbia Business School Columbia Business School (CBS) is the business school of Columbia University, a Private university, private research university in New York City. Established in 1916, Columbia Business School is one of six Ivy League business schools and one of ...

. He received his undergraduate degree from

Grinnell College Grinnell College ( ) is a Private college, private Liberal arts colleges in the United States, liberal arts college in Grinnell, Iowa, United States. It was founded in 1846 when a group of Congregationalism in the United States, Congregationalis ...

. He retired from PIMCO in December 2010 and joined the Global Interdependence Center thinktank. McCulley adheres to

Keynesian economics Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomics, macroeconomic theories and Economic model, models of how aggregate demand (total spending in the economy) strongl ...

, and was particularly influenced by

Hyman Minsky Hyman Philip Minsky (September 23, 1919 – October 24, 1996) was an American economist and economy professor at Washington University in St. Louis. A distinguished scholar at the Levy Economics Institute of Bard College, his research was inten ...

. He is a regular guest of

CNBC CNBC is an American List of business news channels, business news channel owned by the NBCUniversal News Group, a unit of Comcast's NBCUniversal. The network broadcasts live business news and analysis programming during the morning, Day ...

and

Bloomberg Television Bloomberg Television (on-air as Bloomberg) is an American-based pay television network focusing on business and capital market programming, owned by diversified information and media private company Bloomberg L.P. It is distributed globally, re ...

providing investment commentary.

Quotes

*"We believe that Mr. Greenspan should quit giving away puts on the equity market." *"Thus, we are willing to say stocks are irrationally exuberant, notably growth stocks, and, in particular, technology stocks." *"There is room for the Fed to create a bubble in housing prices, if necessary, to sustain American hedonism. And I think the Fed has the will to do so, even though political correctness would demand that Mr. Greenspan deny any such thing." *"Debt deflation is a beast of burden that capitalism cannot bear alone." *"Macroeconomic life after bubbles is not a self-correcting process of renewal, but a self-feeding process of debt deflation — to wit, it’s a Minsky Moment." *"Loosely defined, a Shadow Bank is a levered-up financial intermediary whose liabilities are broadly perceived as of similar money-goodness and liquidity as conventional bank deposits. These liabilities could be shares of money market mutual funds; or the commercial paper of Finance Companies, Conduits and Structured Investment Vehicles; or the repo borrowings of stand-alone

Investment Banks Investment banking is an advisory-based financial service for institutional investors, corporations, governments, and similar clients. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by und ...

and

Hedge Funds A hedge fund is a pooled investment fund that holds liquid assets and that makes use of complex trading and risk management techniques to aim to improve investment performance and insulate returns from market risk. Among these portfolio techniq ...

; or the senior tranches of Collateralized Debt Obligations; or a host of other similar funding instruments."Paul A. McCulley (November 2008)
"The Paradox of Deleveraging Will Be Broken"
. PIMCO.

Footnotes

{{DEFAULTSORT:McCulley, Paul 1957 births Grinnell College alumni Columbia Business School alumni New Keynesian economists Living people