Karen K. Lewis

Karen K. Lewis
  • Joseph and Ida Sondheimer Professor in International Economics and Finance, Professor of Finance, Professor of Economics

Contact Information

  • office Address:

    2446 Steinberg-Dietrich Hall
    3620 Locust Walk
    Philadelphia, PA 19104

Research Interests: asset pricing, international finance, macrofinance, investments

Links: CV, Personal Website



PhD, University of Chicago, 1985;  BA, University of Oklahoma, 1979


Research Associate, National Bureau of Economic Research, 1991-present.

Senior Fellow, Globalization and Monetary Policy Institute, Federal Reserve Bank of Dallas, 2010 – present.

Academic Positions Held

Current Positions:  Joseph and Ida Sondheimer Professor of International Economics and Finance, Finance Department, Wharton School – Primary Appointment; Professor, Economics Department, School of Arts and Sciences – Secondary Appointment

Other Positions at Wharton:  Co-Director, Weiss Center for International Financial Research, 2005-2011; Professor of Finance, 1994-present; Associate Professor of Finance, 1991-1994.

Previous appointment: Assistant Professor, Stern School, New York University, 1985-1991.

Other Positions

Olin Fellow, National Bureau of Economic Research, 1989-90; Visiting Scholar, International Finance Division, Board of Governors of the Federal Reserve System, 1987, 1991, 1995; Consultant, International Monetary Fund, 1996; Economist, First National Bank of Chicago, 1981-82.


Continue Reading


  • Fabio Ghironi and Karen K. Lewis (Working), Equity Sales and Manager Efficiency across Firms and the Business Cycle.

  • Karen K. Lewis and Edith X. Liu (2017), Disaster Risk and Asset Returns: An International Perspective, Journal of International Economics.

  • Karen K. Lewis, Bernard Dumas, Emilio Osambela (2017), Differences of Opinion and International Equity Markets, Review of Financial Studies.

  • Karen K. Lewis (2017), Changing Risk Exposures of Cross-listed Firms and Market Integration, Journal of International Money and Finance, 70, pp. 378-405.

  • Karen K. Lewis and Edith X. Liu (2015), Evaluating International Consumption Risk Sharing Gains: An Asset Return View, Journal of Monetary Economics, 71, pp. 84-98.

  • Karen K. Lewis (2011), Global Asset Pricing, Annual Review of Financial Economics, Vol 3: 435-66, 2011.

  • Karen K. Lewis (2007), Peso Problem, The New Palgrave Dictionary of Money and Finance,, 2007.

  • Karen K. Lewis (2003), What Can Explain the Apparent Lack of International Consumption Risk-sharing?, Journal of Political Economy, Vol. 104, no. 2 : 267-297, reprinted in International Financial Integration (Edward Elgar), 2003.

  • Karen K. Lewis (2000), Why Do Stocks and Consumption Suggest Such Different Gains from International Risk-Sharing?, Journal of International Economics, Vol. 52: 1-35, 2000.

  • Karen K. Lewis (1999), Trying to Explain Home Bias in Equities and Consumption, Journal of Economic Literature, Vol. 37: 571-608, 1999.



Past Courses


    Analyzes financial problems corporations face that result from operating in an international environment. Major topics include managing exchange risk through hedging and financing, measuring exchange rate exposure, calculating the cost of capital for foreign operations, assessment of sovereign risks, capital budgeting from a project and parent perspective, and international taxation.


    Integrates the work of the various courses and familiarizes the student with the tools and techniques of research.


    This course covers topics on foreign exchange rates, international money markets, currency and interest rate derivatives (forwards, options, and swaps), international stock and bond portfolios, and cryptocurrencies. Students learn about the features of financial instruments and the motivations of market participants. The class focuses on risk management, investing, and arbitrage relations in these markets. In addition to prerequisites, FNCE 613 is recommended but not required.


    This course analyzes financial problems corporations face that result from operating in an international environment. Major topics covered are corporate strategy and the decision to invest abroad, international portfolio diversification, managing exchange risk, taxation issues, cost of capital and financial structure in the multinational firm, and sources of financing.


    This course aims to provide the future global manager and financial analyst with the knowledge on policies set by central banks, regulators and governments to reach the goals of price and financial stability as well as support of growth and employment. The core of the course connects between the formal and actual goals that central banks follow and the related economic analysis on which the goals and the policies are set. We will explain the economic rationale for the policy prescriptions to reach the goals and how these are implemented using institutional framework in the US, the European Central Bank (ECB), Israel and remarks on other countries. We use data, current events and events of the 2007-2018 financial crisis as a basis for discussion and assignments. All these are aimed at understanding how and why the Federal Reserve of the US (the Fed), The Bank of Israel (BOI) and the European Central Bank (ECB) set their policies and how that is related to academic research on these issues.


    Independent Study Projects require extensive independent work and a considerable amount of writing. ISP in Finance are intended to give students the opportunity to study a particular topic in Finance in greater depth than is covered in the curriculum. The application for ISP's should outline a plan of study that requires at least as much work as a typical course in the Finance Department that meets twice a week. Applications for FNCE 899 ISP's will not be accepted after the THIRD WEEK OF THE SEMESTER. ISP's must be supervised by a Standing Faculty member of the Finance Department.

In the News

Knowledge @ Wharton


Latest Research

Fabio Ghironi and Karen K. Lewis (Working), Equity Sales and Manager Efficiency across Firms and the Business Cycle.
All Research

In the News

Research Roundup: Foreign Diversification, Social Comparisons and Consumer Identity

Is investing in foreign stocks still a good strategy for offsetting risk and boosting returns in your portfolio? How do social comparisons impact the different dimensions of trust that people can have for each other? How can companies use emotional cues to convey a particular identity to consumers? Wharton professors Karen Lewis, Maurice Schweitzer and Patti Williams, respectively, examined these issues -- and what they mean for business and consumers -- in recent research papers.

Knowledge @ Wharton - 2013/05/8
All News