Who hands out “participation dollars” in class, is married to a U of I finance professor, and is currently researching money laundering?  Professor Charles Kahn, The Bailey Memorial Chair of Money, Banking, and Finance in the College of Business, is also a professor of Economics and teaches finance to both first and second year MBA students.  He has been at the University since 1988, where he received the College of Business Excellence in Research Award in 2002. 

Professor Kahn always enjoyed math, but he likes applying it to “un-mathematical” concepts, which explains his bachelors degree in applied mathematics from Harvard.  A couple of years later while supposedly studying for his masters degree in economics at the University of Cambridge, (“Actually,” he says, “I was studying life, the universe and everything—that is to say, I was doing a fair amount of goofing off.”), he became interested in the “economics of information,” including insurance, contracts, and financial intermediation.  By solving everyday problems with math, he decided to focus on applying math to business and went on to earn a PhD from Harvard in Economics. 

Today, Professor Kahn teaches courses in corporate finance, financial institutions, and game theory to graduate business students at the University of Illinois. As a practical application of his research in banking, Professor Kahn decided to start printing his own money.  If he gives you a dollar bill in class, however, don’t try to spend it elsewhere: the miniature bills are only good for “participation points” when handed in. Professor Kahn adopted this approach because he feels that participation is critical to the learning process.  He has noticed an increase in student participation since implementing his system, and the discussions in his classes are lively and exciting.  His students love getting “paid” to contribute in class! 

Professor Kahn conducts research on some of the problems that arise in payments arrangements—in particular, identity theft and money laundering. He advises any future corporate crooks to use cash because it is the most private form of payment since it does not require identification, but he plans to make it more difficult to be a successful launderer.  His research examines the costs and benefits of government efforts to stop money laundering. With the recent focus on security, his work assesses whether the “cure” is worse than the “disease.” 

Professor Kahn enjoys singing with The Bottom Line, the MBA a cappella group.  As the only bass, he describes himself as  “The bottom line of the Bottom Line.”  Having grown up in Memphis, Tennessee, he finds that the group’s  mixture of gospel and rock comes naturally to him.  Other musical interests include watching his children torture their string instruments (the older, Robert, plays cello and string bass; the younger, Ruth, plays violin).  His wife, Jennie France, is also a finance professor for the College of Business. Despite having  two finance professors for parents, he says that the children appear to have turned out mostly normal.

Professor Kahn also enjoys travel.  His favorite destination is London, where he regularly goes to consult for the Bank of England.  He has also traveled several times to India, to visit with friends and work with colleagues, and to Brazil to present lectures and meet with former students.  His study of money laundering recently took him to Miami and Panama (“a great way to combine business with pleasure!”). The one continent he’s never been to is Antarctica, “but if I come across a research project that takes me there...”

Learn more about Professor Kahn and his research.