Robert F. Engle

My mother says that my father truly enjoyed having a son. My two-years-younger twin sisters felt that he didn't quite know how to enjoy them. But I wasn't aware of those things then. So many of my childhood memories involve him. All the excursions into science were shaped by his knowledge and enthusiasm.

There are some risks we choose to take because the benefits from taking them exceed the possible costs. Optimal behavior takes risks that are worthwhile. This is the central paradigm of finance: we must take risks to achieve rewards, but not all risks are equally rewarded.

Why not put a tax on carbon emissions. It would raise a lot of money, it would reduce the environmental damages in the future, it would solve so many problems, and it would be a much more constructive thing to do than to think about raising the income tax.

Of course, everybody makes mistakes, and we've all been young and stupid. But people need to have a sense of respect, particularly in this business, because hundreds of people are ready to take your place at any time. Maybe some people should think about that.