"Engle III is the first Nobel Prize who was awarded an honorary doctorate by the University of Airlangga," Nasih stated.
He added that the honorary doctorate was a token of appreciation for Engle IIIs contribution towards developing science, particularly economics.
"We are presenting the honorary doctorate to Professor Engle III for his works in developing science, particularly a method that could save countries from economic crisis," Nasih noted.
The method detects economic volatility using Autoregressive Conditional Heteroskedasticity model developed by Engle III and his colleague Professor Clive W.J. Granger of the University of California San Diego (UCSD).
By using the method, researchers and practitioners can make predictions about the state of the economy, particularly finance, based on time series.
In his lecture, Engle III, who is a lecturer and researcher from the Stern School of Business, New York University, described the prospect of global financial stability.
In a public lecture entitled "The Prospects for Global Financial Stability," he explained that turbulent volatilities happen in some countries of the world.
"Financial risks should not be eliminated, because financial markets will not work if there are no risks. However, financial institutions need to be aware of systemic risks," he asserted.
He added that a failure will occur when an institution fails to meet its obligations, resulting in consequences in real economic sectors.
In order to avoid volatility, Engle recommended the government to ensure that financial institutions have capital to cope up with the crisis.
In addition, a state should also have capital cushions for financial rescue, if crisis occurs.
"Hopefully, when a systemic financial crisis could be avoided, then the road to peace will be more open," Engle concluded.