On Apr.3, 2013, Prof. CHEN Yulu, President of RUC met with Prof. Charles Goodhart, Emeritus Professor of Banking and Finance of London School of Economics (LSE). Prof. Goodhart later gave an academic lecture titled “Risk and its Application to the Future of the Eurozone” at RUC School of Finance.  Prof. CHEN first extended his welcome to Prof. Goodhart and then informed him of the achievements that RUC made in latest Discipline Evaluation by the Ministry of Education.  He indicated that, compared with LSE, RUC still has a long way to go in the discipline construction and internationalization. In the new era, China will attach more importance to social sciences and humanities. RUC will grab this golden opportunity to strengthen the cooperation with its partners in the international arena. He expressed his sincere hope to have Prof. Goodhart’s attention and support for  Finance discipline at RUC. Prof. Goodhart extended his gratitude to have this opportunity to visit RUC and congratulate Prof. CHEN on the achievements it made in the latest Discipline Evaluation.  He also talked with Prof. CHEN about the settings of disciplines in China’s higher education.  After the meeting, Prof. ZHAO Xijun, Deputy Dean of School of Finance moderated the academic lecture. In his lecture, Prof. Goodhart first introduced the four financial crises and their causes in UK since the 1970s. Afterwards, he talked about the failings of the Macroeconomics with the question “How did we get here”. Then he explained in detail that the lack of explicit behavioral content in early Keynesian models and simplification via representative agent and no default assumptions led to the dysfunction of the macro-economic theory in the last 30 years. Lastly, he focused on the default situation in the Eurozone and the lessons learned from the defaulted Euro-zone. He also noted that the proposed solution of austerity didn’t work because no interest rate offset was in place accordingly. The existence of immediate liquidity problems, internal devaluation made the whole situation worse. During the followed Q&A session, students and teaching staff of the School of Finance actively raised questions to Prof. Goodhart. These questions are about the latest reform of regulation and management of Bank of England, the possible next country hit by default, etc. Prof. Goodhart gave detailed answers to all the questions. Accompanying Prof. Goodhart was Prof. HUANG Haizhou, chief Strategist, Managing Director, Executive Chairman of Research Committee and Co-Head of Research Department, the China International Capital Corporation (CICC).  Prof. GUO Qingwang, Dean of School of Finance; Prof. TANG Zhong, Director of International Office; Prof. ZHAO Xijun, Deputy Dean of  School of Finance; Prof. ZHANG Jie, Deputy Dean of School of Finance also attended meeting and the lecture.