In the News 2020
See below for 2020 media coverage.
A new year. The right path. A lot of work ahead.
December 31, 2020 | Working Nation
“What do we still need to do to ensure that the economy recovery is equitable? Get control of the spread of the virus. That’s number one, number two, and number three,” said Chicago Booth’s Austan Goolsbee.
Response to recovery: Managing the next phase of COVID-19
December 29, 2020 | Business Day
Chicago Booth’s Randall S. Kroszner discusses the role central banks, fiscal policy, and structural reform play in economic recovery from COVID-19.
Financial rewards for college students could help curb the pandemic
December 29, 2020 | The New York Times
A recent economics study coauthored by Chicago Booth’s Rebecca Dizon-Ross offers new insight into how to design effective financial rewards programs for college students.
Slippery slopes and the boiling-frog effect: How the Republican Party succumbed to Trump
December 23, 2020 | USA Today
Research by Ayelet Fishbach at the University of Chicago Booth School of Business and Oliver Sheldon at Rutgers Business School demonstrates that asking people to reflect on their own bad behavior in the past reduces their willingness to do so again.
Polarised elections raise economic uncertainty
December 22, 2020 | VOX EU
A column coauthored by Chicago Booth’s Steven Davis studies how national election cycles in 23 countries influence economic policy uncertainty.
‘It isn’t even really a stimulus in my opinion’: Economists lament paltry $600 checks to citizens
December 22, 2020 | Salon
Chicago Booth’s Austan Goolsee said it was a mistake for the new stimulus package not to include assistance for states, which could force them to raise taxes and cut employment. His colleague Constantine Yannelis said that other countries have institutional advantages for coping with recessions that the U.S. lacks.
A sign the ESG movement is too big to ignore: there’s backlash
December 22, 2020 | Bloomberg Businessweek
Chicago Booth’s Luigi Zingales is more of a proponent of the environmental, social, and governance (ESG) movement than his colleague Eugene Fama, but says its critics should be taken seriously.
State support for COVID-hit companies has to change
December 21, 2020 | Financial Times
The blanket help governments first provided needs to be better targeted, and private expertise needs to be brought in, suggests Raghuram Rajan, a professor of finance at Chicago Booth.
Will the bipartisan relief bill prop up the economy?
December 20, 2020 | CNN Inside Politics
Austan Goolsbee, Chicago Booth professor and former Obama chief economist, discusses what the relief bill will mean for struggling Americans and the economy in the long run.
Corporate distress with Rajan (podcast)
December 18, 2020 | Bloomberg Surveillance
Raghuram Rajan, Chicago Booth professor and former Reserve Bank of India governor, warns of massive distress in the corporate sector.
When money is an object, how to motivate your workers
December 18, 2020 | Crain’s Chicago Business
“In this economic climate, even a little bit of increased productivity can be the thing that keeps the doors open,” says Devin Pope, a professor of behavioral science and economics at the University of Chicago Booth School of Business. “Some modest resources might be able to get your company there.”
Doctors blame right-wing media for eroding trust during pandemic
December 18, 2020 | NBC News
Multiple working academic papers, including one from Chicago Booth’s Jean-Pierre Dubé, have found a correlation between Fox News’ coverage of the pandemic and less stringent adherence to social distancing and COVID-19 safety measures by viewers.
The latest question in the debate over student debt forgiveness: How valuable is it? Researchers are split
December 18, 2020 | MarketWatch
A working paper coauthored by Chicago Booth’s Constantine Yannelis argues that cancelling student debt would provide the largest monetary benefit to high-income borrowers, while tweaking our current student loan system would better benefit low- and moderate-income borrowers.
Risky loans secure private-equity payouts despite downturn
December 17, 2020 | The Wall Street Journal
“There are benefits from private equity for society as a whole, and we don’t want to throw that away,” said Chicago Booth’s Steven J. Davis, noting the sector’s role in boosting productivity.
The new battles to come over working from home
December 17, 2020 | Bloomberg
In a paper titled “Why Working from Home Will Stick,” Chicago Booth’s Steven J. Davis and coauthors forecast that 22% of all full work days in the U.S. will be supplied from home after the pandemic ends, compared with just 5% before.
By the middle of next year we will see things pick up and we’ll get a little more support from the Fed: Fmr. Federal Reserve governor
December 16, 2020 | Yahoo! Finance
Randall Kroszner, deputy dean at Chicago Booth and a former governor of the Federal Reserve, discusses what to expect from the last Fed meeting of 2020, including how the Fed will weigh the vaccine rollout and business restrictions.
No matter what the Fed does, it can’t boost demand: Kroszner
December 16, 2020 | Bloomberg Surveillance
Chicago Booth professor and former Federal Reserve governor Randall Kroszner discusses challenges for the Federal Reserve, inflation expectations, and the weakening of the U.S. dollar.
What happens to the unemployed when the checks run out
December 14, 2020 | The New York Times
Millions face a steep and immediate drop in spending power when federal jobless benefits end this month, with a sharp rise in the poverty rate. Research from professors including Booth’s Pascal Noel and Erik Hurst, as well as UChicago’s Peter Ganong, sheds light on the issues.
Kidney dialysis is a booming business. Is it also a rigged one?
December 14, 2020 | Medscape
The problem, points out Chicago Booth economist Thomas Wollmann, is that dialysis clinics serve a local clientele. Plenty of competition in New York doesn’t tell you anything about the situation in South Dakota.
Couch or cubicle? Vaccine may not lure Americans back to the office
December 14, 2020 | Reuters
Researchers including professor Steven Davis of Chicago Booth estimate that 22% of all work days will be “supplied from home” after the pandemic, and the pandemic’s “mass social experiment” will cut spending in major city centers as much as 10% on a permanent basis.
How China’s online microlenders reached a tipping point in world’s biggest mobile internet market
December 11, 2020 | South China Morning Post
Professor Zhiguo He from the University of Chicago Booth School of Business says that digital microlenders are making up for a shortfall in traditional credit services for consumers and SMEs.
ECB launches fresh stimulus to support COVID-hit eurozone economy
December 10, 2020 | Financial Times
“I understand what they are trying to do—giving markets more confidence—but I don’t think it will be enough and it is quite likely they will have to come back and do more,” said Randall Kroszner.
Universal student debt forgiveness disproportionately benefits high earners
December 10, 2020 | Brookings: The Hutchins Roundup
Researchers including Constantine Yannelis of Chicago Booth show that the benefits of universal loan forgiveness disproportionately accrue to high income earners.
U.S. risks a double-dip recession if COVID surge is not controlled: Professor
December 10, 2020 | CNBC: Squawk Box
It remains to be seen how easily the U.S. will transition from one White House administration to the next, says Austan Goolsbee of the University of Chicago Booth School of Business.
Getting everyone vaccinated, with ‘nudges’ and charity auctions
December 9, 2020 | The New York Times
Richard Thaler, a Nobel laureate and professor at Chicago Booth, proposes selling a small proportion of early doses to the rich at a charity auction and rewarding reluctant recipients to accelerate herd immunity.
How startups factor into the recovery
December 9, 2020 | Crain’s Chicago Business
Chicago Booth’s Mark Tebbe says that despite the pandemic, Chicago remains a great place to launch a business.
The pandemic could give way to an era of rapid productivity growth
December 8, 2020 | The Economist
As businesses adopt new processes and technologies to adapt to the pandemic, research coauthored by Chicago Booth’s Chad Syverson suggests this could lead to a productivity surge later on.
Milton Friedman was wrong on the corporation
December 8, 2020 | Financial Times
The Stigler Center at the University of Chicago Booth School of Business has just published an e-book, Milton Friedman 50 Years Later, which contains articles on the shareholder-stakeholder debate from experts including Booth’s own Luigi Zingales and Steven Kaplan.
Former RBI governor Rajan on stimulus, global economy, India
December 7, 2020 | Bloomberg Markets
Raghuram Rajan, a former governor of the Reserve Bank of India and a professor at Chicago Booth, discusses the need for more monetary stimulus as economies grapple with the pandemic and his outlook for the global economy.
Remote work to continue long after coronavirus, study shows
December 7, 2020 | The Epoch Times
“Our survey evidence says that 22 percent of all full work days will be supplied from home after the pandemic ends, compared with just 5 percent before,” says a report coauthored by Chicago Booth professor Steven J. Davis.
Stocks laugh at economic uncertainty, for now
December 6, 2020 | The Wall Street Journal
The Economic Policy Uncertainty Index, co-created by Chicago Booth’s Steven J. Davis, has retreated somewhat from its spike in April and May, but it remains nearly three times as high as its average over recent decades.
Six central bankers who shaped the future of their economies
December 5, 2020 | The Guardian
Raghuram Rajan, a professor at Chicago Booth and a former governor of the Reserve Bank of India, is often described as one of the few economists to predict the financial crisis.
Wall Street Week
December 4, 2020 | Bloomberg
Austan Goolsbee, Chicago Booth professor and former chairman of the Council of Economic Advisers, joins Wall Street Week for a conversation on surging COVID-19 cases, vaccine optimism, and the next steps in further fiscal stimulus. (Interview begins at 26:09.)
Overconfidence could be investors’ biggest mistake, Richard Thaler says
December 4, 2020 | Barron’s
“For individual investors, the best strategy is benign neglect,” said Richard H. Thaler, a professor of behavioral science and economics at Chicago Booth. “Create a sensible long-term portfolio, and then ignore it.”
Two Booth alums named among private equity’s ‘most influential women of today and tomorrow’
December 3, 2020 | Polsky Center for Entrepreneurship and Innovation
The Wall Street Journal’s Private Equity Analyst has named two University of Chicago Booth School of Business alums, Katie Ossman, ’13, and Amy Christensen, ’11, to its annual list of women “who have risen through the professional ranks of their respective firms.”
What the latest unemployment data says about the economy
December 3, 2020 | CNBC: Squawk Box
Austan Goolsbee, a professor at Chicago Booth and former chairman of the Council of Economic Advisors, breaks down the latest unemployment numbers and what they mean.
Biden’s new top economist has a longtime focus on workers
December 1, 2020 | The New York Times
Chicago Booth’s Austan Goolsee said he expected Cecilia Rouse, President-elect Joe Biden’s nominee to lead the Council of Economic Advisers, to focus on challenges facing workers in the gig economy and on workers who suffer long spells of unemployment in the crisis.
Canceling student loan debt could benefit wealthy Americans the most
December 1, 2020 | FOX Business
A working paper coauthored by Chicago Booth’s Constantine Yannelis found that erasing all student loan debt would distribute $192 billion to the top 20% of earners in the U.S., but just $29 billion to the bottom 20% of U.S. households.
William Watson: Carrots, sticks and sledge-hammers
December 1, 2020 | Financial Post
Eric Budish's policy rule for the COVID-19 pandemic: Maximize social welfare subject to R ≤ 1. In this instance, R is the COVID transmission rate and R ≤ 1 means each infected person infects no more than one other person on average, which keeps the pandemic curve flat.
Antitrust in the digital economy: Views of leading economists on the market dominance of technology giants
November 30, 2020 | VOX EU
The IGM Forum at Chicago Booth invited its panels of leading U.S. and European economists to express their views on the market dominance of Google and other technology giants in the digital economy.
Fmr. Obama White House Chief Economist: Democrats should take a smaller stimulus plan if necessary
November 29, 2020 | CNN: Inside Politics
Austan Goolsbee, a professor at Chicago Booth and former White House Chief Economist under President Obama, discusses the importance of a relief package as key pandemic programs expire.
What could Trump do to tank the economy out of vengeance? What Republicans have done for years
November 28, 2020 | Salon
“The main thing is that letting COVID-19 rage uncontrollably will ravage the economy. They know this and are still not doing anything,” said Chicago Booth’s Austan Goolsbee of the Trump administration.
Indian households remain under duress with income still below pre-COVID levels – study
November 27, 2020 | The Print
Many Indian households remain under duress with employment, income, and consumption levels yet to return to their pre-COVID levels, according to a research paper coauthored by Chicago Booth professors Marianne Bertrand and Rebecca Dizon-Ross.
How A.I. and big data helped China’s tech giants dominate consumer finance
November 27, 2020 | South China Morning Post
As China plans to roll out a countrywide social credit system, critics are raising concerns about user privacy and machine learning. “The biggest challenge is that A.I./ML only learns correlation, very, very well—oftentimes too well,” said Chicago Booth’s Zhiguo He.
The next commodity supercycle may already be underway
November 26, 2020 | The Telegraph
The U.S. Federal Reserve lacks the legal authority to deliver compensating monetary stimulus with rates at zero and QE magic wearing off, suggests Chicago Booth’s Randall Kroszner. “It can’t make the real economy take off like a rocket,” he said.
Hoped-for boom in public investment risks paving road to nowhere
November 25, 2020 | Financial Times
It is a mistake to assume that building infrastructure will ensure future growth, suggests Chicago Booth’s Randall S. Kroszner, pointing to Japan’s past public works projects as an example.
Janet Yellen and the male-dominated world of economics
November 24, 2020 | Forbes
Chicago Booth professor Heather Sarsons found that women economists get less credit when they collaborate with men. She writes, “The fact that women who work specifically with men receive tenure at lower rates than comparable women who work alone or with other women suggests that gender enters into the employer’s inference process.”
It will take more than vaccines to cure long economic COVID
November 24, 2020 | The Telegraph
“Asset purchases are extremely effective against a market meltdown, but the Fed can’t cure COVID, and it can’t make the real economy take off like a rocket,” said Chicago Booth’s Randall Kroszner, a former governor of the Federal Reserve.
Janet Yellen: a ‘straight shooter’ who can build bridges
November 24, 2020 | The Telegraph
“What she’s very good at is trying to get things done and not letting ideology get in the way,” says Chicago Booth’s Randall Kroszner of Janet Yellen, President-elect Joe Biden’s pick for Treasury secretary.
Would canceling $10,000 in student debt really help that much?
November 23, 2020 | Marketplace
A lot of the people who have high student debt are high earners, says Chicago Booth’s Constantine Yannelis, because they accrued that debt while pursuing higher degrees, like master’s, medical, and law degrees.
Raghuram Rajan says proposal to allow business houses into banking is a ‘bad idea’
November 23, 2020 | Mint
Chicago Booth’s Raghuram Rajan criticized a recommendation from the Reserve Bank of India’s Internal Working Group to allow Indian corporate houses to set up banks as part of proposed changes to the banking sector.
Meatpacking link is found in up to 8% of early U.S. COVID cases
November 23, 2020 | Bloomberg
As many as one in 12 cases of COVID-19 in the early stage of the pandemic in the U.S. can be tied to outbreaks at meatpacking plants, according to a study from Chicago Booth and Columbia University.
Student loan losses seen costing U.S. more than $400 billion
November 21, 2020 | The Wall Street Journal
“In 2007–2008, we saw a lot of lenders who were making risky bets going under. There’s no force like that in the student-loan market,” said Constantine Yannelis, a former Treasury Department official in the Obama administration who now teaches at Chicago Booth.
CBN should raise interest rates to tackle inflationary pressure – Kroszner
November 19, 2020 | BusinessDay
Chicago Booth’s Randall Kroszner spoke at the BusinessDay CEO Forum, “A Breakthrough Approach to Leadership and Innovation in the Age of Disruption,” where he discussed steps the Central Bank of Nigeria can take to improve its economy.
Yellen, Summers say central banks no match for savings glut
November 16, 2020 | Bloomberg
Chicago Booth’s Raghuram G. Rajan took part in a panel at the Bloomberg New Economy Forum that highlighted the limits of central bank powers in addressing issues such as climate change and income inequality.
Young care workers, mortgages, Black Friday
November 13, 2020 | BBC Radio 4: You and Yours
Chicago Booth’s Chad Syverson suggests the coronavirus pandemic will make Black Friday less popular in the United States this year. (Segment begins 8:08.)
Learning to be a better boss
November 15, 2020 | Crain’s Chicago Business
In the course Managing in Organizations, Chicago Booth professor Ann L. McGill says the goal is to help students be better bosses by learning what makes people function at their best.
When it comes to economics, Biden and Trump are not so different after all
November 14, 2020 | The Times
President Donald Trump and president-elect Joseph Biden agree on the need for stimulus to protect workers during the coronavirus pandemic. “There is a myth that Republicans won’t be willing to spend and Democrats will,” says Randall Kroszner, economics professor at the University of Chicago Booth School of Business.
At work, your voice is underrated. So call me, maybe
November 13, 2020 | Crain's Chicago Business
Booth's Nicholas Epley weighs in on why there's a better way to stay connected during COVID that simply requires reacquainting ourselves with a tried-and-true technology: the telephone.
Why This Contentious Transition Is So Perilous for the Economy
November 13, 2020 | New York Times
The coronavirus crisis and the transition of 2020 have the clear potential to spiral out of control, says economist Austan Goolsbee.
Equilibrium models vs. intuition
November 12, 2020 | The Rational Reminder Podcast
Chicago Booth’s Lubos Pastor joins the Rational Reminder Podcast to discuss his body of research, including the goal of quantitative easing and the relationship between political cycles and stock returns.
The Spac sponsor bonanza
November 12, 2020 | Financial Times
“The public Spac investors start, effectively, 25 per cent in the hole,” said Steven Kaplan, a private equity expert at the University of Chicago Booth School of Business, referring to the 20 per cent promote and other standard fees.
Putting the 'S' in ESG
November 12, 2020 | Julius Baer Magazine
Environmental, social, and governance is at the forefront of every company’s thinking in 2020 – but the social part of it is proving the most complicated to measure. Booth's Robert Gertner weighs in. (Article begins on page 66.)
Zoom and Text Less, Call More, New Science Suggests
November 12, 2020 | Inc
A handful of new studies, by researchers including Booth's Nicholas Epley, suggest we should all pick up the phone a whole lot more rather than depend on asynchronous messaging.
The Military Appeal: MBA Programs Love Veterans, And The Feeling Is Mutual
November 11, 2020 | Poets & Quants
The Booth School of Business at the University of Chicago had one of the highest proportions of military MBAs in this year’s incoming Class of 2022: 8%. It was the highest in school history in the biggest class in school history: 621.
The economy challenges facing Joe Biden—and how he should face
November 11, 2020 | The Independent
Randall Kroszner stresses that bolstering America's testing and tracking infrastructure to enable adequate monitoring and suppression of outbreaks is crucial for getting the economy back on track.
The economy’s struggles will shape Joe Biden’s presidency
November 09, 2020 | The Wall Street Journal
Chicago Booth’s Austan Goolsbee says an uncontrollable new outbreak could create new stresses in financial markets and for small businesses that would lead to lasting economic damage.
The student loan crisis led to a debt strike. Experts have other ideas.
November 09, 2020 | The Wall Street Journal
Some personal finance professionals have proposed administering student loan payments as a deduction, but Chicago Booth’s Constantine Yannelis suggests that could create problems for borrowers. “If their income falls, it can be some time before they see a payment reduction,” he explains.
Watch three experts give their first take on the October jobs report
November 06, 2020 | CNBC Squawk Box
Chicago Booth’s Austan Goolsbee joins BlackRock’s Kate Moore and Georgetown’s Nada Eissa to discuss the October jobs report.
Stimulus: If Joe Biden wins, there will be a lot of common ground on both sides: expert
November 05, 2020 | Yahoo! Finance
Austan Goolsbee, professor of economics at Chicago Booth and former chairman of the Council of Economic Advisers under President Obama, shares his take on the 2020 presidential election.
Biden or Trump, there’s no reset for U.S.-Asia policy
November 05, 2020 | Business Times
Chicago Booth’s Randall Kroszner notes that both Mr. Biden and Mr. Trump have taken “a very hard line on China” in their approach to foreign policy, and argues that global trade tensions would likely persist even with a change in U.S. leadership.
13 habits that untrustworthy people have in common
November 05, 2020 | Reader’s Digest
“In online interactions, rough mics and video lags decrease ease of understanding, which interferes with building mutual trust,” says Alex Koch, assistant professor of behavioral science at the University of Chicago Booth School of Business.
Fed probably wants to extend lending programs: Kroszner
November 05, 2020 | Bloomberg Daybreak: Australia
Randall Kroszner, a former Federal Reserve governor and a professor of economics at Chicago Booth, discusses the central bank’s policy and the outlook for the economy.
A look at Donald Trump’s economic scorecard
November 05, 2020 | Bloomberg: Stephanomics
Chicago Booth professor and former Federal Reserve governor Randall Kroszner joins the Stephanomics podcast to discuss trade, taxes, and trillions of dollars in coronavirus rescue funding.
November 5, 2020 Episode
November 05, 2020 | BBC Radio 4: Today
Chicago Booth’s Randall Kroszner discusses the 2020 presidential election in the United States and how Joe Biden would handle the economy differently than Donald Trump if he wins the election. (Interview starts at 18:21.)
Kroszner: U.S. election will be closer than polls suggest
November 03, 2020 | Bloomberg Daybreak: Europe
States like New York and California with lots of voters are extremely pro-Biden, so the national polls can give a skewed view, suggests Chicago Booth’s Randall Kroszner, a former governor of the Federal Reserve.
ProPublica’s Electionland: The state of Election Day 2020
November 03, 2020 | ProPublica
A 2019 NBER study coauthored by Chicago Booth’s Devin Pope estimated that residents of Black neighborhoods waited 29% longer to vote in the 2016 election and were 74% more likely to spend more than 30 minutes at their polling place. “I would be surprised if there weren’t disparities in wait times for early voting and on Election Day in 2020,” said Pope.
Two experts from the left and the right debate the Trump economy
November 03, 2020 | CNBC Squawk Box
Austan Goolsbee, a professor at the University of Chicago Booth School of Business and former chairman of the Council of Economic Advisors, discusses the potential impact of the election on the economy and the markets.
Fed will try to keep focus on economy in post-election meeting
November 03, 2020 | Financial Times
While the Fed is averse to commenting on political developments, economists including Chicago Booth’s Randall Kroszner suggest that the US central bank would consider shoring up financial markets if a contested or uncertain outcome caused severe disruptions.
Democrats and Republicans are confident their candidate
will win—and that could affect consumer spending after the election
November 03, 2020 | MarketWatch
The presidential contest “might trigger a wave of reluctance to consume” post-election, when many people’s preferred candidate loses, according to a new paper coauthored by Chicago Booth’s Michael Weber. In contrast, a 2018 paper coauthored by Booth’s Amir Sufi found no effect on household spending after the previous two presidential elections.
If restaurants go, what happens to cities?
November 03, 2020 | The New York Times
Prior to the pandemic, restaurants were a huge feature that attracted people to downtowns, suggests Chicago Booth’s Erik Hurst. “When you think of other urban amenities, there is nothing that is as democratized,” he says.
Biden adviser Austan Goolsbee on the economic path forward
November 02, 2020 | CBS News
Former White House economic adviser and Chicago Booth professor Austan Goolsbee discusses differences in the public health and economic policy paths offered by Joe Biden and Donald Trump.
November 02, 2020 | BBC 5 Live: Wake Up to Money
Chicago Booth’s Randall Kroszner discusses the possible outcome of the 2020 presidential election and how economic policy would differ under a Biden administration versus the Trump administration. (Interview starts at 27:21.)
30 states require employers to give workers time off to vote on Election Day—see what the law is in your state
November 02, 2020 | Business Insider
Sendhil Mullainathan, a behavioral scientist at Chicago Booth, argues that giving workers time off to vote could be a key step to reducing barriers to the ballot box for low-wage service workers and voters of color.
Chicago Booth doctoral business program marks centenary
November 02, 2020 | Poets & Quants
The year 2020 marks the 100th anniversary of the Ph.D. program at the University of Chicago Booth School of Business, the nation’s first doctoral business program
One big-box store or 120 small vendors: What’s better for a neighborhood?
October 31, 2020 | WBEZ / Chicago NPR
Economists are not very good at measuring the value of things like culture and character, suggests Chicago Booth’s Eric Zwick. That’s where the political process plays a role, he adds, to step in when the cultural value might outweigh the economic value.
Bidenomics: Can Democrats deliver on their new leftwing agenda?
October 29, 2020 | Financial Times
If Joe Biden wins the presidential election, Chicago Booth’s Austan Goolsbee thinks Republicans are likely to try to prevent him from implementing additional fiscal support amid the pandemic.
Superstitions play a role in pandemic coping
October 29, 2020 | AARP
“In these times when life feels more out of control, research suggests that those are the moments that people turn to magical thinking and superstitions more,” says Jane Risen, a professor of behavioral science at the University of Chicago Booth School of Business.
New rules for choosing suppliers
October 27, 2020 | The Times Raconteur
COVID-19 has forced many businesses to re-examine their supply chain structure and future procurement strategy. Chicago Booth professor Nicole DeHoratius says buyers are starting to mine down to get a real sense of how viable their suppliers are. (Article begins on page 8.)
The ‘fair tax’ and two inconvenient truths
October 27, 2020 | Crain’s Chicago Business
Without a viable solution to the state’s spending problems, both the level of taxation and quality of government-provided services in Illinois will continue to trend in the wrong directions, says Chicago Booth professor Joseph L. Pagliari Jr.
Employers more likely to assign credit to men in group work: 5 study
October 26, 2020 | Becker’s Hospital Review
Employers are more likely to give men credit for group work when they can’t directly determine each individual’s contribution, according to a study coauthored by Chicago Booth’s Heather Sarsons.
Chicago-area grocers stock up to ward off shortages as COVID-19 cases rise. ‘We’re always
chasing one thing to the next.’
October 23, 2020 | Chicago Tribune
Even though many essentials are still in high demand, experts including Chicago Booth’s Constantine Yannelis say they don’t expect as much panic buying as in the spring. “Now there’s much less uncertainty about whether we can keep an economy running during a pandemic,” Yannelis said.
Threats to U.S. Treasury market liquidity still exist, Fed says
October 23, 2020 | Reuters
The U.S. Treasury market still runs the risk of abrupt freezes in liquidity like the one seen in March and April, a member of the Federal Reserve Bank of New York said in a speech to the Brookings-Chicago Booth Task Force on Financial Stability.
To say there’s no trade-off between health and the economy during lockdown is a
October 23, 2020 | The Times
Despite a lack of uniform restrictions, COVID-19’s reproduction number has remained close to 1 in the United States since July. Chicago Booth’s Randall Kroszner says, “It has to, at the very least, give pause for the people who say there is no trade-off and no real economic cost of lockdown.”
Former U.S. Fed governor warns
global economy faces a ‘long slog ahead’
October 23, 2020 | Yahoo! Finance
The virus is “going to have a long term impact on demand in certain sectors,” said Chicago Booth’s Randall Kroszner. “This isn’t going to simply go away with the creation of the vaccine. The ability to use technology in the place of physical meetings and travel is going to have a permanent impact on the travel and hospitality industries for quite some time.”
Forget antitrust laws. To limit tech, some say a new regulator is needed.
October 22, 2020 | The New York Times
A report from Chicago Booth’s Stigler Center recommends the creation of a regulatory authority to oversee the major tech companies.
When Milton Friedman, prophet of profit, met a
October 21, 2020 | Financial Times
As COVID-19 threatens the existence of many businesses, Chicago Booth’s Raghuram Rajan suggests the best thing a company can do is focus its resources on survival to continue providing decent jobs for its workers.
‘Jury is still out’ on negative rates, ex-Indian central bank chief says
October 20, 2020 | CNBC
Raghuram G. Rajan, a professor at Chicago Booth and a former governor of the Reserve Bank of India, suggested that central banks are now willing to tolerate more inflation for brief periods but would need to consider the extent to which various policies help or hurt the economy in the long run.
Off the Cuff with Raghuram Rajan
October 19, 2020 | The Print: Off the Cuff
Raghuram Rajan, former Reserve Bank of India governor and the Katherine Dusak Miller Professor of Finance at Chicago Booth, shares his assessment of the Indian economy and the government’s handling of the pandemic.
The economy won’t be back to normal until 2022 or later, according to our survey of
October 19, 2020 | FiveThirtyEight
In the latest survey from Chicago Booth’s Initiative on Global Markets and FiveThirtyEight, economists collectively thought there was a 66% probability that the economy won’t truly be back to normal until 2022 or later.
As virus flares globally, new strategies target hot spots
October 19, 2020 | Associated Press
Chicago Booth’s John Birge and Ozan Candogan have been modeling how localized restrictions in New York City could best minimize both infections and economic harm.
Fed, central banks will find exit from massive stimulus impeded
October 18, 2020 | Bloomberg
Chicago Booth’s Randall Kroszner said the big debts that governments are racking up are “going to make it difficult for central banks to raise rates when they feel the need to do so” because that will increase borrowing costs.
Would Biden’s tax plan help or hurt a weak economy?
October 18, 2020 | The New York Times
Economists advising Mr. Biden’s campaign from the outside, including Chicago Booth’s Austan D. Goolsbee, say they remain confident that his agenda will promote growth—and that Mr. Biden should not wait, if elected, to raise taxes on corporations and the rich.
Demonetization, GST, lockdown sans relief dealt body blow to Indian economy—Raghuram Rajan
October 17, 2020 | The Print
Chicago Booth’s Raghuram Rajan said the pandemic has hurt the potential growth of the Indian economy, and the loss of jobs and livelihood will lead to many Indians becoming impoverished.
There will be more innovation post-COVID. Here’s why.
October 16, 2020 | Crain’s Chicago Business
The pandemic can be an opportunity to reflect on how we can and should use our time when things are back to normal, suggests Chicago Booth professor Harry L. Davis.
Raghuram Rajan: ‘Society has to find a new equilibrium’
October 14, 2020 | Financial Times
Ragurham Rajan, a professor at Chicago Booth and former Indian central banker, explains why the solution to economic adversity is to strengthen local communities.
Pullman’s successful turnaround might be a guide to helping other areas, study says
October 14, 2020 | Chicago Sun-Times
A study from the Rustandy Center for Social Sector Innovation at Chicago Booth concludes that “place-based investments” can have a positive impact, provided there’s strong financial backing and buy-in from community leaders.
Some U.S. cities lure remote workers with money, promise of friendly communities
October 14, 2020 | Voice of America
The arrival of COVID-19 has forced businesses—and cities—to adapt. That’s what communities have always done, said James Schrager, a clinical professor of entrepreneurship and strategy at the University of Chicago Booth School of Business.
Nobel Prize–winning economists have tips on how ventilators
could have been distributed at the onset of the pandemic
October 14, 2020 | MarketWatch
“The gig economy looks more like an auction and takes some price-setting power out of the hands of employers; it might be easier for really good workers to get paid what they’re worth,” said Anthony Lee Zhang, a finance professor at the University of Chicago Booth School of Business.
As U.S. unemployment soared, Germany’s barely budged. Is America’s safety net enough?
October 13, 2020 | The Washington Post
“The pandemic was like a meteor striking. You can’t go back to the world as it was. Some jobs will be made extinct,” said Chicago Booth’s Randall Kroszner, a Federal Reserve governor during the Great Recession.
TheWall: Making the switch from doctor to investor
October 12, 2020 | The Edge Markets
“Medicine is wonderful because you get to help save lives, but I felt that the good that I was able to achieve was limited by time and my hands,” said Anthony Lawrence, ’19 (AXP-18), who worked as a doctor before pivoting to a career in venture capital. “I wanted to be able to help create value for society at scale and investing in companies allows me to do that.”
Sales calls have gone virtual, and A.I. is listening in
October 09, 2020 | Wired
Sanjog Misra, a professor of marketing at the University of Chicago Booth School of Business, says A.I. analytics tools remove some of the mystique from sales.
Trump, Congress pursue second round of $1,200 stimulus checks in effort to
revive huge federal aid program
October 09, 2020 | The Washington Post
Research from Chicago Booth’s Constantine Yannelis suggests that targeting payments to households with low cash levels or lower income would result in more spending. A working paper coauthored by Booth’s Michael Weber echoes that more targeting would make stimulus checks more impactful.
Liz Weston: Suddenly retired? Here’s what to do next
October 08, 2020 | Associated Press
The share of unemployed people who called themselves “retired” increased from 53% in January to 60% in April, according to a study coauthored by Chicago Booth’s Michael Weber.
New York City uses ‘nudges’ to reduce missed court dates
October 08, 2020 | Science
A new study coauthored by Chicago Booth psychologist Anuj Shah suggest people aren’t intentionally skipping court dates so much as forgetting or overlooking the information due to confusing summons forms.
Coronavirus stimulus: Failed negotiations would force Americans ‘to make devastating cuts,’ experts warn
October 08, 2020 | Yahoo! Finance On the Move
“If we don’t get that rescue and relief, I think the economy’s absolutely going to stall out,” Chicago Booth’s Austan Goolsbee says of President Trump’s call to halt stimulus negotiations until after the election.
The pandemic prompted a record decline in GDP. A large part
of private equity portfolios had no symptoms.
October 07, 2020 | Institutional Investor
A large portion of private equity portfolios seemed asymptomatic following the sharp economic downturn from COVID-19, according to research by Chicago Booth’s Steven Kaplan, Harvard’s Paul Gompers, and Georgetown’s Vladimir Mukharlyamov.
Ex-Obama advisor: ‘Take phone out of Trump’s hand,’ warns he’s ‘going to blow up the
October 07, 2020 | Yahoo! Finance
Austan Goolsbee, a professor of economics at Chicago Booth and former chairman of Obama’s Council of Economic Advisers, says President Trump needs to stop tweeting immediately. “He’s been in the hospital—he is on medication. He should not be tweeting out things that will blow up our economic recovery.”
Anxious for a lifeline, the U.S. economy is left to sink or swim
October 07, 2020 | The New York Times
“The gains that have been built up over time are fragile,” says Chicago Booth’s Raghuram G. Rajan of the economic recovery from the pandemic. “If we don’t try to protect those gains, it will take a longer time, a really long time to come back.”
U.S. economy without more stimulus is nearing a dangerous “tipping point”
October 07, 2020 | The New York Times
Amid faltering economic gains, economists including Chicago Booth’s Raghuram Rajan largely agree that the loss of momentum is likely to get worse if more aid doesn’t arrive soon.
The post-pandemic firm: What should corporations do?
October 06, 2020 | Project Syndicate
Raghuram G. Rajan of Chicago Booth argues that companies should continue to focus on maximizing the value of their shares over the long term.
Jimmy Butler helps his Miami Heat teammates bond, one $20 cup of coffee at a time
October 05, 2020 | Los Angeles Times
Pradeep Chintagunta, a Chicago Booth economist who specializes in marketing, suggested Miami Heat’s Jimmy Butler is essentially functioning like a movie theater that charges customers a premium for snacks. “The value that this coffee provides to his audience is probably pretty high. He’s leveraging the fact that the value is high,” Chintagunta said.
Long-term jobless caught in a squeeze that imperils recovery
October 04, 2020 | Associated Press
Matthew Notowidigdo, an economist at the University of Chicago Booth School of Business, predicts that the rapid recall of temporary workers will lower unemployment to 4.6% a year from now. That would suggest a much faster recovery than the previous recession.
Chicago’s entrepreneurs fight for funds in city’s risk-averse business world
October 04, 2020 | Financial Times
In a global survey conducted by Chicago Booth professor Steven Kaplan, venture capital firms said they expected to invest at about 80% of their normal pace over the coming year—a smaller drop than during the global financial crisis.
Regulators consider treating the freight rail industry like it’s 1887
October 03, 2020 | Washington Examiner
Kevin Murphy and Mark Zmijewski, economic professors from the University of Chicago Booth School of Business, released a paper outlining an updated methodology to modernize how the Surface Transportation Board monitors the financial health of the freight rail industry.
‘Bloomberg Surveillance’ full show (10/02/2020)
October 02, 2020 | Bloomberg Surveillance
Randall Kroszner, Chicago Booth professor and former Federal Reserve governor, says the geographical exodus from the cities to suburbs will have a significant impact on the labor market.
Nearly 4 million U.S. jobs have vanished forever
October 02, 2020 | CNN Business
Austan Goolsbee, a professor at Chicago Booth and former economic adviser to President Obama, says the rising number of permanently unemployed Americans paints a troubling picture of the recovery.
Big companies are starting to swallow the world
September 30, 2020 | The New York Times
Chicago Booth’s Austan Goolsbee suggests that government antitrust authorities must be more vigilant than ever amid the pandemic as large companies grow rapidly while their small competitors struggle.
Derby’s take: New research says central bank view on bond buying too rosy
September 29, 2020 | The Wall Street Journal
Central bank researchers overestimate the potency of bond buying stimulus efforts, in part because it benefits their careers, according to a new paper coauthored by Chicago Booth’s Elisabeth Kempf and Lubos Pastor.
Central bankers finding bigger QE impact saw career bump
September 28, 2020 | Bloomberg
Central bank economists tend to be more positive than outside researchers about the effectiveness of unorthodox monetary policy, according to a new study coauthored by Chicago Booth’s Elisabeth Kempf and Lubos Pastor.
Every day-trader dollar is worth five in a new theory on stocks
September 26, 2020 | Bloomberg
Research from Chicago Booth’s Ralph Koijen suggests institutional managers are largely insensitive to prices because their buying and selling is primarily driven by their mandates. That bestows disproportionately large influence to other investors, like retail funds.
Audit partner rotation delivers few benefits: Study
September 25, 2020 | CFO
A new study coauthored by Chicago Booth professor Christian Leuz analyzes the reasons behind mandating auditor rotations. Published in The Accounting Review, the study finds no significant fall-off in reporting quality over the course of auditors’ five-year tenures.
A win-win for health and life in times of COVID
September 25, 2020 | VOX EU
As many households forgo medical care due to financial insecurity and the loss of employer-sponsored health insurance, Chicago Booth’s Ralph Koijen proposes life insurers provide interest-free loans that policyholders can use for health insurance payments.
‘Desperation and fear’ for millions with Congress deadlocked over pandemic assistance
September 24, 2020 | NPR
Joseph Vavra, an economics professor at Chicago Booth, says it's hard to know exactly how much stimulus the economy needs, but not providing any poses a huge risk.
8 ways to vastly improve your communication skills
September 23, 2020 | World Economic Forum
A study coauthored by Chicago Booth’s Nicholas Epley finds that people who know each other well don’t understand one another any better than people who just met. “Our problem in communicating with friends is that we have an illusion of insight,” Epley said.
What remote jobs tell us about inequality
September 23, 2020 | BBC
According to a study by Chicago Booth’s Jonathan Dingel and Brent Neiman, the jobs best suited to going remote were well-paid, white-collar occupations in big cities, while those in industries like agriculture and hospitality were much harder to switch.
Black Americans’ rocky relationship with banks can be traced back to an institution that promised wealth but collapsed
after just 9 years
September 23, 2020 | Business Insider
According to research by Constantine Yannelis of Chicago Booth and Luke C. D. Stein of Babson College, the short-term effects of Freedman’s Bank included raised incomes and literacy levels, and allowed the formerly enslaved population to accumulate wealth through land ownership.
Need to make bank boards more responsible for their performance: Raghuram Rajan
September 23, 2020 | CNBC India
With the COVID-19 pandemic set to burden the Indian banking system with more non-performing assets, Raghuram Rajan, a professor at Chicago Booth and former governor of the RBI, discusses key problems and potential solutions.
Experts think the economy would be stronger if COVID-19 lockdowns had been more
September 22, 2020 | FiveThirtyEight
In this week’s survey from FiveThirtyEight and the Initiative on Global Markets at Chicago Booth, 32 quantitative macroeconomists weighed in on the present and future of the economy, and whether early lockdowns were too aggressive or not aggressive enough.
Raghuram Rajan, Viral Acharya call for privatizing PSBs, dismantling
September 22, 2020 | The Times of India
Raghuram Rajan, a professor at Chicago Booth and former governor of the Reserve Bank of India, coauthored a paper on banking sector reforms that calls for “re-privatising” some public sector banks and dismantling the department of financial services in India.
The surprising benefits of repeat experiences
September 21, 2020 | Reader’s Digest
“There’s a general belief that if you want to seem like an interesting, cultured person, the best thing you can do is to showcase that you’re open to new experiences,” says Chicago Booth’s Ed O’Brien. “I think we take for granted the other value of really digging deep into one domain.”
Ex-Fed governor: Coronavirus impact ‘more fundamental and long-run’ than 9/11, 2008 crisis
September 19, 2020 | Yahoo! Finance
Chicago Booth’s Randall Kroszner, former governor of the Federal Reserve, thinks the coronavirus outbreak is creating long-term structural changes in the economy, while reshaping certain sectors and geographies in profound ways.
How to think long term with near-zero interest rates
September 19, 2020 | The Wall Street Journal
“The Fed is sending the message we want you to spend more and invest in riskier assets,” says Chicago Booth’s Austan Goolsbee of the Federal Reserve’s policy to hold short-term interest rates near zero until 2023.
Election 2020: Why leaders will benefit from max turnout ...
And how they’re winning the employee vote
September 18, 2020 | Forbes
Research from the University of Chicago Booth School of Business finds that residents of predominantly Black neighborhoods waited 29% longer to vote in the 2016 presidential election than those in white neighborhoods. Booth’s Sendhil Mullainathan suggests that lost time is the modern equivalent of a poll tax.
What are the Fed’s new hurdles for rate hikes? Only the Fed knows
September 18, 2020 | Reuters
“The direction is a very sensible one,” said Chicago Booth’s Randall Kroszner of the Fed’s three-part test for raising interest rates. “But I am concerned that they think this is now going to make a big difference in terms of market expectations.”
Is a fair price the same price for all?
September 18, 2020 | Crain’s Chicago Business
As the United States faces many health-related issues tied to eating habits, Chicago Booth’s Jean-Pierre Dubé suggests personalized pricing could help by allowing companies to expand nutritional education to those who need it.
COVID-19 to have a more ‘fundamental and long term’ impact on economic activity: Fmr. Fed governor
September 17, 2020 | Yahoo! Finance On the Move
Chicago Booth’s Randall Kroszner joins the On the Move panel to discuss the Federal Reserve’s latest decision to keep interest rates low for a long time.
Life insurers could help solve America’s healthcare shortfall
September 17, 2020 | Financial Times
The COVID-19-driven recession is depriving Americans of healthcare benefits just when they need them most, according to Chicago Booth’s Ralph S.J. Koijen and Columbia’s Stijn Van Nieuwerburgh.
U.S. economic rebound may be a slow train for the unemployed
September 17, 2020 | Reuters
Chicago Booth’s Randall Kroszner says “there is going to be an enormous reallocation within the labor market” as workers shift from troubled sectors to expanding ones amid the COVID-19 pandemic.
‘Not all the burden can be put on the central bank’
September 17, 2020 | Sky News
Chicago Booth’s Randall Kroszner, a former Federal Reserve board member, comments on the Fed’s latest statement—which left markets disappointed.
Private equity vs. venture capital: What’s the difference?
September 16, 2020 | Business.com
Private equity investors bring more than cash to the table—they offer expertise and experience that business owners might lack. “PE investors usually have some expertise in the industry and may want to help acquire other companies and get bigger,” said Steven Neil Kaplan, professor of entrepreneurship and finance at Chicago Booth.
Negative rates are off the table for the Fed: Economist
September 15, 2020 | CNBC Squawk Box Asia
Chicago Booth’s Randall Kroszner, a former governor of the Federal Reserve, says the Fed does not have the tools to drive economic recovery from COVID-19, and the onus is on Congress to take fiscal policy action.
10 things you’ll spend less on in retirement
September 15, 2020 | Kiplinger
The average household spends 25% less on food in retirement. According to Chicago Booth’s Erik Hurst and Princeton’s Mark Aguiar, this is because you have more time to shop, plan ahead, and compare prices.
Aftershock: The long-term prognosis for a tech economy in trauma
September 15, 2020 | ZD Net
A paper coauthored by Chicago Booth’s Veronica Guerrieri suggests that interdependent sectors of a global economy can damage one another collaterally during an event as calamitous as the pandemic.
A.I. could help rid healthcare of biases. It also might make them worse
September 15, 2020 | STAT
Sendhil Mullainathan, a computational and behavioral science researcher at the University of Chicago Booth School of Business, spoke with STAT about the importance of communication in developing A.I. tools, the data used to train algorithms, and how A.I. could improve care.
Greed is good. Except when it’s bad.
September 13, 2020 | The New York Times
In a special issue of The New York Times Magazine, Chicago Booth’s Marianne Bertrand and other experts revisit the legacy of the Friedman Doctrine, which gave rise to the shareholder-primacy view of the corporation. Bertrand suggests the view rested on the naïve belief that what is good for shareholders is good for society.
U.S. university completes development of new London business campus
September 11, 2020 | B Daily
Chicago Booth’s new London campus is intended to demonstrate the school’s ongoing commitment to the city as a place to invest and build its presence in. “We are delighted that our new address puts us at the heart of London’s vibrant business community,” said Randall Kroszner, deputy dean for executive programs at Booth.
Check out Chicago Booth’s brand new London campus!
September 11, 2020 | Business Because
The University of Chicago Booth School of Business announced the completion of its new central London campus. “From One Bartholomew Close, we will have businesses ranging from finance and professional services to technology startups and entrepreneurs on our doorstep,” said Randall Kroszner, deputy dean for executive programs at Booth.
Phone calls create stronger bonds than text-based communications
September 11, 2020 | Science Daily
While people are leaning heavily on technology for a sense of social connection amid the pandemic, they often send email or text messages when a phone call is more likely to produce feelings of connectedness, according to a study coauthored by Nicholas Epley of Chicago Booth and Amit Kumar of the McCombs School of Business.
Expect 2 ‘major waves’ of unemployment if D.C. gridlock continues, Obama
economic advisor says
September 11, 2020 | Yahoo! Finance
Amid the ongoing pandemic and Washington gridlock, Chicago Booth’s Austan Goolsbee suggests states and cities will continue to face shortfalls; in order to balance their budgets, he says they’ll need to lay off workers, raise taxes, or both.
Chicago Booth opens new campus in London
September 11, 2020 | Poets & Quants for Executives
Chicago Booth’s Randall Kroszner and Madhav Rajan discuss the school’s new campus at One Bartholomew Close in central London, which provides a COVID-19 secure environment to enable a number of local students to follow their classes in person.
Is the economy running fast or slow? It depends where you look.
September 11, 2020 | The Christian Science Monitor
Recipients of federal stimulus checks spent only about 40% of the money by early July, according to a study coauthored by Chicago Booth’s Michael Weber. If the goal is to stimulate demand, there are more efficient ways to do it, Weber suggests.
Revisiting Milton Friedman’s critique of stakeholderism
September 11, 2020 | Bloomberg Quint
The Stigler Center at Chicago Booth held a virtual conference this month examining Milton Friedman’s legacy, including the argument that corporate boards should focus on maximizing shareholder value. Luigi Zingales, a professor at Booth who helped organize the conference, says that the intellectual basis for stakeholder capitalism can be rescued.
Economists don’t think the lower unemployment rate signals a clear recovery
September 10, 2020 | FiveThirtyEight
In the latest economic survey from FiveThirtyEight and Chicago Booth’s Initiative on Global Markets, economists weighed in on the future of the U.S. GDP and unemployment numbers, as well as Americans’ spending and saving habits.
Smart stimulus: Cash as code
September 9, 2020 | MIT Technology Review
As the pandemic adds momentum to the development of central bank digital currencies, Chicago Booth’s Zhiguo He says it’s key to use digitally delivered state money in a sophisticated and market-oriented way.
India’s GDP contraction should alarm everyone: Raghuram Rajan
September 4, 2020 | The Times of India
After India reported a significant contraction in its GDP during the April–June quarter, Chicago Booth’s Raghuram Rajan commented that the negative GDP growth numbers should alarm everyone. “The 23.9% contraction in India … compares with a drop of 12.4% in Italy and 9.5% in the United States, two of the most COVID-affected advanced countries,” he said.
Austan Goolsbee: We need to control spread of virus to rebound economy faster
September 4, 2020 | Fox News: The Daily Briefing
Austan Goolsbee, a professor at Chicago Booth and former Council of Economic Advisers chairman, reacts to President Trump’s handling of the economy on “The Daily Briefing.”
The service economy meltdown
September 4, 2020 | The New York Times
Jonathan Dingel and Brent Neiman of Chicago Booth have calculated that 37% of jobs can be done entirely from home. Those jobs tend to be highly paid, in fields like legal services, computer programming and financial services.
Kroszner: Sharp U.S. jobs recovery but still tough going
September 4, 2020 | Bloomberg Daybreak: Europe
Randall Kroszner, former governor of the Federal Reserve and professor of economics at Chicago Booth, says the United States is experiencing a sharp recovery—but warns of tough times ahead as employment undergoes fundamental changes.
Economists are turning to culture to explain wealth and poverty
September 3, 2020 | The Economist
A paper coauthored by Chicago Booth’s Luigi Zingales finds that in high-social-capital areas in Italy, households invest less in cash and more in stocks, and make less use of informal credit.
Fmr. chairman of the Council of Economic Advisers on U.S. recovery: ‘I don’t think objectively the conditions are going to be very good in 2
September 3, 2020 | Yahoo! Finance
Austan Goolsbee, Chicago Booth professor and former chairman of the Council of Economic Advisers for President Obama, joins the Final Round to discuss the latest economic data.
Economist on stock market surge: Investors may be ‘irrationally nuts’
September 2, 2020 | CNN Business: Markets Now
Chicago Booth’s Austan Goolsbee talks about why the stock market is booming while Main Street suffers.
Temporary furloughs are turning into permanent job losses during the pandemic
September 1, 2020 | Marketplace
Steven Davis, professor of economics at the University of Chicago Booth School of Business, spoke with “Marketplace Morning Report” about the psychological cost of permanent job losses amid the pandemic.
Joe Biden’s claim that he won’t raise taxes on people making less than $400,000
August 31, 2020 | The Washington Post
“This isn’t about whether middle-class people will have to pay more taxes. Clearly they won’t,” Chicago Booth’s Austan D. Goolsbee says of the debate over Joe Biden’s tax policy. “This is an argument about whether making corporations pay more income taxes would trickle down into lower workers’ wages.”
Fed wants to avoid negative rates, Kroszner says
August 27, 2020 | Bloomberg Daybreak: Australia
Chicago Booth professor and former Federal Reserve governor Randall Kroszner discusses the Fed’s new approach to setting U.S. monetary policy, letting inflation and employment run higher—a shift that will likely keep interest rates low for years to come.
Randy Kroszner on Fed
August 27, 2020 | Bloomberg Daybreak: Asia
Randall Kroszner, professor of economics at the University of Chicago Booth School of Business and former Federal Reserve governor, discusses the Fed’s new strategy for inflation.
Ex-RBI chief Rajan says fed is making an important shift
August 27, 2020 | Bloomberg Daybreak: Australia
Raghuram Rajan, Chicago Booth professor and former Reserve Bank of India governor, discusses Federal Reserve policy and its implications for emerging markets.
Policy makers at Jackson Hole ‘puzzling’ over why inflation is so low
August 27, 2020 | Yahoo! Finance The Ticker
Randall Kroszner, deputy dean and economics professor at Chicago Booth and former Federal Reserve governor, discusses the details of a new strategy for the central bank that will tolerate inflation “moderately” above its 2% target.
The niche courses can count when it comes to securing U.S. work authorization
August 26, 2020 | Find MBA
Chicago Booth is one of the latest business schools to make its MBA STEM-certified, allowing international students to apply for a 24-month extension to the OPT scheme. “This updated degree reinforces the University of Chicago’s longstanding commitment to its international community,” dean Madhav Rajan said.
Public confidence, often inscrutable, pivotal for recovery
August 26, 2020 | Reuters
According to a study by Chicago Booth economists Austan Goolsbee and Chad Syverson, local restrictions accounted for only 7 percentage points of an average 60% drop in consumer traffic, suggesting that people stayed home of their own accord.
Even with a vaccine, the economy could take many months to return to normal
August 25, 2020 | FiveThirtyEight
Economists surveyed by Chicago Booth’s Initiative on Global Markets and FiveThirtyEight predicted that if 25 percent of the population were suddenly immune to COVID-19, there would only be a 30 percent chance of GDP returning to its pre-pandemic level by the end of June 2021.
As permanent economic
damage piles up, the COVID crisis is looking more like the Great Recession
August 25, 2020 | Washington Post
Booth’s Marianne Bertrand, a leading expert on the pandemic’s labor market, weighs in on how permanent job losses threaten to transform temporary COVID closures into a lasting recession.
Brexit and the COVID-19 bounce back
August 24, 2020 | Politico Europe
Booth’s Christian Leuz weighs in on why the continuing Brexit stalemate could pose problems for the UK’s ability to bounce back from the pandemic's impact on the economy.
How a small-business software company became one of the most accurate forecasters of the pandemic
August 23, 2020 | Business Insider
Marianne Bertrand of Chicago Booth discusses how Homebase data hinges on its user base of more than 100,000 small businesses.
There is ‘big danger’ in bragging about the current economy: Fmr. Chair of the Council of Econ. Advisers
August 21, 2020 | Yahoo! Finance On the Move
Booth’s Austan Goolsbee joins the On the Move panel to discuss the biggest takeaways from the final night of the Democratic National Convention.
Former CEA chairman Austan Goolsbee on the Democrats’ economic policies
August 21, 2020 | CNBC Squawk Box
Austan Goolsbee, professor at Chicago Booth and former chairman of the Council of Economic Advisers, joins “Squawk Box” to discuss the Democrats’ economic policies.
Confronting the crisis: Comparing UK And US Covid-19 support packages
August 21, 2020 | Forbes
Chicago Booth’s Randall S. Kroszner compares the measures adopted by the UK and US to help the economy in time of the crisis.
Ask the experts: Best credit cards for food delivery
August 21, 2020 | WalletHub
Chicago Booth’s Michael Weber explains why so many credit cards have added food-delivery rewards during the COVID-19 pandemic—and how to maximize those rewards.
In Conversation: Raghuram Rajan, India's former central bank governor
August 20, 2020 | Channel News Asia
In poorer countries, some children may never go back to school after the pandemic. Chicago Booth’s Raghuram Rajan says governments need to get smarter at handling the crisis.
In a world where central banks issue digital currencies, bitcoin and Libra may find a place
August 20, 2020 | CNBC
Raghuram Rajan, former Reserve Bank of India governor, talk about the role Libra and bitcoin could play when central banks begin to issue digital currencies.
Venture capital Is faring better than other parts of the economy
August 20, 2020 | Institutional Investor
According to a study by researchers including Chicago Booth's Steve Kaplan, the venture capital industry is weathering the Covid-19 pandemic better than many parts of the world economy.
We will see widespread bankruptcies in the U.S., says former Fed governor
August 19, 2020 | CNBC Street Signs Europe
Randall Kroszner, former Federal Reserve governor and Norman R. Bobins Professor of Economics at the University of Chicago Booth School of Business, discusses the U.S. housing market and SME bankruptcies amid the pandemic.
The U.S. forced major manufacturers to build ventilators. Now they’re piling up unused in a strategic reserve.
August 18, 2020 | The Washington Post
The United States ordered double the number of ventilators needed in the worst-case scenario, which involved no equipment sharing between states and drew from the strategic national stockpile, said Chicago Booth’s Dan Adelman.
Washington’s Jason Wright becomes first Black team president in NFL history
August 17, 2020 | UPI
The Washington Football Team has hired Jason Wright, ’13, a former NFL player, business consultant, and alumnus of Chicago Booth, as team president. He is the first Black team president in NFL history.
Your performance feedback doesn’t work—here’s how to fix it
August 17, 2020 | Forbes
A recent research paper coauthored by Joshua Klayman, professor emeritus at the University of Chicago Booth School of Business, suggests that employees are more motivated to improve performance when feedback is collaborative and future focused.
We killed the middle class. Here’s how we can revive it.
August 16, 2020 | The Atlantic
“The ’60s and the ’70s in the U.S., I think, were a very special time,” said Chicago Booth’s Chang-Tai Hsieh, the lead author of a paper on how the upward mobility of women and Black Americans supercharged the economy in the postwar era. “I do think there is the potential for a similar burst, if we had a similar type of revolution again, to tear down more barriers.”
Congress fails to reach stimulus deal, leaving tens of millions of Americans desperate for relief
August 14, 2020 | CNBC
“If the lapse lasts into September, I would expect to see defaults, business closures and perhaps personal bankruptcies start to pick up,” Chicago Booth’s Eric Zwick says of the delay on a new COVID-19 relief package.
How close is China’s DCEP to launching?
August 14, 2020 | Forkast.News
China’s core issue continues to be how to stimulate domestic demand, suggests Zhiguo He, a professor of finance at Chicago Booth. “Stimulating domestic demand needs more information, not only a simple new payment or a new technology, it’s more like an economic question, not a technical problem,” He said.
In business, don’t leave well enough alone
August 14, 2020 | Crain’s Chicago Business
Companies are notorious for finding what works and sticking with it, but Chicago Booth’s Robert H. Gernter argues that experimentation is important for innovation.
How long would Trump’s extra unemployment aid last?
August 13, 2020 | CBS News
Without an extension of the $600 unemployment benefit, the nation is likely to witness a spike in evictions and food insecurity, according to a survey of economists by the Initiative on Global Markets at Chicago Booth.
What economists fear will happen without more unemployment aid
August 11, 2020 | FiveThirtyEight
Economists surveyed by Chicago Booth’s Initiative on Global Markets and FiveThirtyEight suggest that personal consumption will most likely decline if federal unemployment aid isn’t renewed by September 1.
Is there such a thing as a ‘good’ or ‘bad’ recession?
August 11, 2020 | BBC Future
Because the current recession is such a complicated mix of supply and demand shocks, it’s harder to predict how government interventions will work, suggests Chicago Booth professor Veronica Guerrieri. “This is why people were debating whether expansionary policy would be good or not,” she says. “You can increase demand but it will not give more incentive for waiters to go to work or increase the likelihood of customers going to a restaurant.”
Inflation is totally out of the control of central banks
August 10, 2020 | The Market
Eugene Fama, Nobel laureate and professor of finance at Chicago Booth, warns that investors could begin to question the credit worthiness of governments because of the high national debt levels.
U.S. needs expedited bankruptcy process to aid recovery, Kroszner says
August 06, 2020 | Bloomberg Markets
Randall Kroszner, deputy dean at Chicago Booth and former Federal Reserve governor, says an expedited U.S. bankruptcy procedure would put distressed firms in a better position both for the workers who can remain and for the holders of the debt.
The controversial $600 unemployment aid debate, explained
August 06, 2020 | The Washington Post
Chicago Booth economist Joseph Vavra suggests Congress has waited too long to act on unemployment benefits and must use a simpler solution to get the money out quickly. “Let’s get the typical worker to about 100 percent wage replacement,” Vavra says. “A $400 federal supplement would do that.”
Why banks’ declining reserves matter for the dollar
August 06, 2020 | Financial Times
Even as conditions improve in the financial system, Chicago Booth’s Wenxin Du says the related decline in the total cash pile held by banks at the U.S. Federal Reserve should still be carefully watched.
Fresh U.S. pandemic stimulus should be more targeted: Raghuram Rajan
August 06, 2020 | Reuters
The United States should take a more targeted approach with its new pandemic aid in case of a future economic slowdown or a second wave of infections, suggests Raghuram Rajan, a professor at Chicago Booth and a former governor of the Reserve Bank of India.
The unique U.S. failure to control the virus
August 06, 2020 | The New York Times
Early in the pandemic, Chicago Booth’s Austan Goolsbee suggested that until the virus was under control, many people would be afraid to resume normal life and the economy would not function normally. The events of the last few months have borne out his prediction.
Gone for good? Evidence signals many jobs aren’t coming back
August 05, 2020 | Associated Press
Steven Davis, an economist at the University of Chicago Booth School of Business, estimates that even after the virus has been brought under control, the proportion of people working from home will triple compared with pre-pandemic levels.
Should governments spend away?
August 03, 2020 | Project Syndicate
As the pandemic and its consequences persist, Chicago Booth’s Raghuram Rajan says we owe it to future generations to recognize how spending today could affect investment tomorrow. “We must target our spending carefully,” he says. “We must shift to protecting workers, not every job.”
After the coronavirus pandemic, here’s how the UK can solve its looming productivity
August 03, 2020 | The Independent
Without taking steps to address the problems now, the UK risks sleepwalking its way into a further productivity slide in the midst of an economic crisis, says Chicago Booth’s Chad Syverson.
Rules on insolvency ‘must be eased to prevent flood of bankruptcies’
August 03, 2020 | The Times
Chicago Booth’s Randall Kroszner, a former governor of the Federal Reserve, said that policymakers in Britain should take a pragmatic approach to corporate insolvency to protect jobs and to preserve as much economic value as possible.
Should asking a stranger to take your photo
go the way of the daguerreotype?
August 03, 2020 | The Washington Post
Asking a stranger to take your photo can have psychological benefits, according to research by Chicago Booth’s Nicholas Epley. “The expectation was that people don’t want to help, but people reported feeling very happy doing something for others,” he said.
The anatomy of a very brief bear market
August 02, 2020 | Financial Times
Niels Gormsen and Ralph Koijen of Chicago Booth found that dividend futures, which measure expected dividend growth, fell much less in the crisis than stock prices.
U.S., China must ‘step up’ to lead in the coronavirus crisis or emerging economies may sink, experts say
August 02, 2020 | CNBC Asia
The world needs global leadership in order to expand resources for countries that need them most during the pandemic, says Raghuram Rajan, a finance professor at the University of Chicago Booth School of Business.
Another $1,200 stimulus check won’t make up for loss of the $600 enhanced unemployment insurance
July 31, 2020 | CNBC Make It
Enhanced unemployment insurance has kept consumer spending flowing as the U.S. economy tries to recover from COVID-19, according to a new report coauthored by Joseph Vavra of Chicago Booth. Vavra estimates that cutting the benefit would decrease consumer spending by $13 billion per week.
How Democrats and Republicans can reach a deal on coronavirus relief
July 31, 2020 | CNBC Squawk Box
Austan Goolsbee, a professor at Chicago Booth and former chairman of the Council of Economic Advisors, and Andrew Olmem, partner at Mayer Brown and former deputy director of the National Economic Council, discuss negotiations for new COVID-19 relief benefits.
Surveillance: Negative rates debate with Rajan (podcast)
July 30, 2020 | Bloomberg
Booth professor and former Reserve Bank of India governor Raghuram Rajan says the Fed will be as supportive as possible but will resist negative interest rates.
Private equity gags on its own medicine in contentious debt battles
July 30, 2020 | Financial Times
“It is a very natural development given the increased amount of funding to alternatives and the overlap of buyout, credit and hedge funds in the distress space,” said Booth's Steven Neil Kaplan.
The Fed is attempting to stop a potential recession but needs monetary support
July 29, 2020 | CNBC Street Signs Asia
Austan Goolsbee, a professor at the University of Chicago Booth School of Business, says the U.S. is facing its worst-ever recession, and it’s the only one caused by something that has nothing to do with the economy.
Bezos, Zuckerberg and Musk have made $115 billion this year
July 28, 2020 | Bloomberg
Some of the wealthiest executives in the technology sector are growing even richer as the coronavirus pandemic drives more activity online. “We moved the brick-and-mortar economy to an online economy dramatically,” said Luigi Zingales, a finance professor at the University of Chicago Booth School of Business. “Probably the same thing would have happened in a longer period of time. Now it’s happening in weeks instead of years.”
Should Congress extend the additional $600 per week in unemployment?
July 28, 2020 | PBS NewsHour
Chicago Booth’s Austan Goolsbee and the American Enterprise Institute’s Michael Strain discuss whether the extra $600 per week benefit should be extended through the end of 2020 or tapered to a smaller amount.
Why this economist says it’s a ‘major mistake’ to continue $600 unemployment benefit
July 28, 2020 | CNBC The Exchange
Steven Davis, a professor at the University of Chicago Booth School of Business and advisor to the U.S. Congressional Budget Office, discusses whether the $600 unemployment benefit is necessary relief or a disincentive to work.
Fed outlook turns gloomier as coronavirus spreads
July 27, 2020 | The Wall Street Journal
Chicago Booth professor and former Federal Reserve governor Randall Kroszner says the markets and the public expect the Fed to fix problems its tools are suited for. “There is nothing the Fed can do to bring back the airline industry, to replace broken supply chains, to make people feel comfortable going out to shopping malls,” he says.
Ex-Obama adviser warns of a potential repeat of the financial crisis
July 26, 2020 | CNN Business
Austan Goolsbee, a professor at Chicago Booth and former chair of President Obama’s Council of Economic Advisors, warns that whoever wins the presidential election might be facing worse economic conditions than Obama did in 2009.
Wisconsin’s smallest businesses faced biggest hurdles to
get COVID-19 loans, experts say
July 26, 2020 | Wisconsin State Journal
“It was, I think, really a balancing act between trying to target specifically where this was needed with probably over-allocating funds and having some funds end up in places where probably they weren’t needed as much,” says Chicago Booth’s Micheal Minnis of the Paycheck Protection Program.
The GOP is about to do to the American economy what Thelma and Louise did to the car
July 25, 2020 | Rolling Stone
The $600 unemployment benefit is roughly equivalent to the average lost wage for the American worker. Because it is a flat fee, most workers—about two-thirds, according to Chicago Booth’s Joseph Vavra—are eligible to bring home more money than they would at their old jobs.
What’s the backup plan if there’s no COVID-19 vaccine?
July 24, 2020 | NBC News
“The CARES Act was mainly based on the premise that we would freeze jobs and firms in place and then everyone would go back,” says Steven Davis, an economics professor at the University of Chicago Booth School of Business. “There’s a great deal of evidence that the post-pandemic economy will look significantly different and many of the lost jobs are not coming back.”
US-China conflict to impair global
trade which is vital for India’s reopening: Raghuram Rajan
July 24, 2020 | The Economic Times
Cautioning that there will be deeply damaged firms in the economy, Chicago Booth’s Raghuram Rajan says the post-pandemic recovery has to be accompanied by a process of repair.
Q&A: How to better cope with the mental burden of a pandemic
July 23, 2020 | Medical Xpress
Chicago Booth professor and social psychologist Ayelet Fishbach says policymakers have a responsibility to help guide the public through feelings of uncertainty brought on by the pandemic.
Crain’s notable LGBTQ executives and businesses championing diversity and inclusion
July 23, 2020 | Crain’s Chicago Business
Chicago Booth alumnus Rodney Jones-Tyson, ’98, chief risk officer at Baird, was named among Crain’s 2020 list of notable LGBTQ executives for establishing an LGBTQ employee resource group as well as a multicultural resource group that tripled the number of officers who are people of color.
Opinion: Take Social Security at 62? Here’s when it makes sense to do it
July 22, 2020 | MarketWatch
Early retirement is a major factor in the decline of labor-force participation, according to research by Michael Weber of Chicago Booth, Olivier Coibon of the University of Texas at Austin, and Yuriy Gorodnichenko of the University of California at Berkeley. “[It] suggests that the onset of the COVID-19 crisis led to a wave of earlier than planned retirements,” the researchers write.
Fmr. Obama economic adviser reveals top 3 economic priorities
July 22, 2020 | Yahoo! Finance
Austan Goolsbee, former chairman for President Obama’s Council of Economic Advisers and a professor at Chicago Booth, discusses the latest stimulus outlook as the GOP and White House remain at odds on a new proposal.
Raghuram Rajan on COVID-19: Is it time to de-centralise power?
July 22, 2020 | CoronaNomics
As the coronavirus pandemic seems to accelerate the end of globalization, Chicago Booth professor and former RBI governor Raghuram Rajan discusses whether the time has come for a wave of radical political devolution.
Pandemic’s economic hit will be here ‘for a long time’ even if a vaccine is approved, economist says
July 22, 2020 | CNBC Asia
While markets reacted positively this week to promising news of potential coronavirus vaccines in development, Chicago Booth’s Raghuram Rajan warned that the economic hit from the pandemic will be here for a long time. He said that many small businesses that closed in March aren’t going to reopen even when the situation improves.
Economists think congress should keep paying unemployed workers $600 a week—or even more
July 21, 2020 | FiveThirtyEight
In the latest installment of a regular survey from Chicago Booth’s Initiative on Global Markets and FiveThirtyEight, participating economists collectively thought there was a 59 percent chance that either keeping or increasing enhanced unemployment benefits would be most beneficial to the economy.
Wall street’s hedge fund obsession gets vindicated in research
July 21, 2020 | Bloomberg
Hedge funds exert far more power on equity prices than most other classes of investors, according to a recent paper from Chicago Booth’s Ralph Koijen, New York University’s Robert Richmond and Princeton University’s Motohiro Yogo.
End of $600 unemployment bonus could push millions past the brink
July 21, 2020 | The New York Times
Joseph Vavra, an economist at Chicago Booth, warns that if the enhanced unemployment benefits expire, “there’s a good chance that what is now an unemployment problem becomes a foreclosure crisis and eviction crisis.” A working paper from Chicago Booth’s Pascal J. Noel and the University of Chicago’s Peter Ganong and Damon Jones indicates the risk is particularly acute for Black and Latino workers, who have been disproportionately affected by job losses and are less likely to have savings or other assets to fall back on.
Economists warn scaled-back unemployment benefits would knee-cap recovery
July 21, 2020 | The Hill
Joseph Vavra, a professor at Chicago Booth, says the $600 benefit has been an important factor in the economic recovery, helping millions of people pay their rent, buy food and spend money at businesses desperate for consumers. “There’s lots of evidence that unemployed workers spend those benefits when they get them, and that flows out to the general economy,” he said.
Coronavirus threatens the luster of superstar cities
July 21, 2020 | The New York Times
Chicago Booth’s Jonathan Dingel and Brent Neiman estimate that almost 40 percent of the nation’s jobs can be done from home. If this model catches on, it could reconfigure the geography of America’s tech industries. Booth’s Erik Hurst argues that people will always seek the kind of social contact that cities provide.
Active mutual funds could have finally outperformed during the
coronacrisis. Instead, their returns were dismal.
July 20, 2020 | MarketWatch
In a new working paper, Chicago Booth professor Lubos Pastor and PhD candidate M. Blair Vorsatz find that active managers have performed poorly during the COVID-19 crisis, in contrast to the popular belief that active managers can outperform during downturns.
Economic recovery is under way but fighting flare-ups is key
July 19, 2020 | The Wall Street Journal
Former Federal Reserve governor Randall S. Kroszner, an economist at the Chicago Booth School of Business, said it is imperative that governments quickly improve their ability to identify and contain localized infection outbreaks.
There’s often more money on the table than you think
July 17, 2020 | Crain’s Chicago Business
As businesses attempt to regain their footing after the COVID-19-induced economic downturn, Chicago Booth professor George Wu recommends being more aggressive in negotiating new commercial agreements. “The key is to dial it up just a little more than usual, but not to go so far that you run the risk of scuttling a deal altogether,” he says.
Why we’ll be working from home long after coronavirus
July 17, 2020 | BusinessBecause
The idea of continuing remote work post-pandemic raises big questions for organizations about how they structure their workforce and how personnel work with one another, says Chicago Booth’s Jonathan Dingel. “That’s not going to be the default for firms that were organized with the assumption of co-located people working face to face,” he says.
India NPAs may see unprecedented rise in next six months, Raghuram Rajan says
July 15, 2020 | BloombergQuint
India’s banking sector is likely to witness an unprecedented increase in NPAs in the next six months, said Raghuram Rajan, Chicago Booth professor and former RBI governor. “We are in trouble and the sooner we recognize it, the better it is because we really need to deal with the problem,” he added.
How the experts are measuring the economic recovery
July 15, 2020 | FiveThirtyEight
Economists are looking most closely at gross domestic product to measure the economic recovery, according to a joint ongoing survey between FiveThirtyEight and Chicago Booth’s Initiative on Global Markets.
Leaders prefer uncertain advice more than overconfidence
July 14, 2020 | Becker’s Hospital Review
In a series of studies, Chicago Booth’s Celia Gaertig and University of Pennsylvania’s Joseph Simmons found that although people evaluate confident advisers favorably, they don’t mind when advice itself is uncertain. “Advisors benefit from expressing themselves with confidence, but not from communicating false certainty,” the researchers conclude.
How COVID-19 is impacting employment for older workers
July 14, 2020 | Quartz
A study from Chicago Booth found that among those who left the labor force, 60% claimed to be retired in April compared to 53% in January. Michael Weber, one of the study’s authors, says it’s “very unlikely” we’ll see a big bounce back in the employment to population ratio coming out of the recession.
The psychology behind to-do lists and how they can make you feel less anxious
July 14, 2020 | CNN
People tend to give up in the middle of goals, according to psychologists including Chicago Booth’s Ayelet Fishbach. One solution is to make the “middles” of your goals and to-do list tasks short.
Austen Goolsbee weighs in on Biden’s ‘Build Back Better’ plan
July 13, 2020 | Yahoo! Finance
Austan Goolsbee, a Chicago Booth professor and former chair of the Council of Economic Advisers, joins Yahoo Finance’s The First Trade to discuss Joe Biden’s $700 billion economic plan, which Goolsbee says is primarily about investment and rebuilding infrastructure the country needs.
The PPP worked how it was supposed to. That’s the problem.
July 13, 2020 | Vox
In a May poll by Data for Progress, 24% of respondents said the Paycheck Protection Program should help keep businesses afloat. Yet, as Chicago Booth’s Michael Minnis notes, the goal of the PPP was to keep workers on payroll. “It wasn’t called the small business protection program or the microbusiness protection program. Companies in the 100 to 500 employee range have more payroll dollars than companies in the under 100 employees range,” he said.
When scholars collaborate with tech companies, how reliable are the findings?
July 12, 2020 | The New York Times
While a recent study from Cornell University suggested drivers for Uber and Lyft may be better compensated than previously understood, Chicago Booth’s Luigi Zingales suggested that the research might be subtly skewed, because academic work that relies on data controlled by companies tends to avoid negative findings.
My social anxiety was rekindled by lockdown. Could phoning up strangers help?
July 11, 2020 | The Guardian
Nicholas Epley, a professor at the Chicago Booth School of Business, says that most people who claim to hate talking on the phone overestimate how uncomfortable the interaction will be. His studies have repeatedly shown that voice calls are much more intimate than emails or texts, yet no more awkward.
Shopping mall fixtures seek more aid as pandemic pummels retail
July 10, 2020 | Bloomberg Tax
Retailers, especially apparel companies, frequently mentioned CARES Act tax benefits in their financial disclosures, according to research coauthored by Chicago Booth’s John Gallemore.
The leveraging of America: How companies became addicted to debt
July 09, 2020 | Financial Times
Unless over-indebted businesses see their revenues begin to rise, many will confront a stark choice between orderly restructuring and default. Chicago Booth’s Steven Kaplan suggests private equity firms can help companies interested in restructuring. “There are billions and billions of dollars of funds getting ready to put money in to help with that process,” he said.
How regulations, shrinking Fed balance sheet fueled repo mayhem
July 09, 2020 | Bloomberg Law
A new report coauthored by Chicago Booth’s Wenxin Du examines the cause of turbulence in funding markets last September. The report suggests U.S. global systemically important banks have become the “lenders-of-second-to-last resort.”
NCLT should prepare to deal with avalanche of new cases, says Raghuram Rajan
July 08, 2020 | CNBC-TV18
According to Raghuram Rajan, former RBI governor and a professor at Chicago Booth, a key step that India needs to take in the run-up to economic recovery is to clean up the financial sector of past stresses. He said that the NCLT should be working in overdrive to clear out old cases and prepare for the deluge of new ones.
Two-thirds of laid off workers eligible for benefits that exceed their wages: NBER paper
July 08, 2020 | CNBC
Under the CARES Act, 68% of the unemployed are eligible for benefits exceeding what they had been earning, according to research by Chicago Booth’s Joseph S. Vavra and Pascal J. Noel and the University of Chicago’s Peter Ganong. Occupations with the highest percentage of unemployment compensation compared to salary include food service, janitors and medical assistants.
It’s the pandemic, stupid: Public health worries—not shutdowns—driving
July 08, 2020 | Forbes
According to a new paper by Chicago Booth’s Austan Goolsbee and Chad Syverson, fears about contracting COVID-19, not government-mandated shutdowns, are to blame for deepening the economic slump. “While overall consumer traffic fell by 60 percentage points, legal restrictions explain only 7 percentage points of this,” they write.
Return to work with Rep. McHenry
July 08, 2020 | Bloomberg Surveillance Podcast
Austan Goolsbee, a professor at the University of Chicago Booth School of Business, says the economies in the U.S. and Sweden will have a hard time recovering if the virus is not contained soon.
The ways the U.K. economy is responding to COVID-19 differently than the U.S.
July 08, 2020 | Newsweek
Chicago Booth’s Randall Kroszner says that while both the U.K. and U.S. have a “very strong monetary policy response,” the U.K. has been much more supportive of apprenticeships and cultural institutions.
Economists think congress could create an economic disaster this summer
July 07, 2020 | FiveThirtyEight
In a survey by FiveThirtyEight and Chicago Booth’s Initiative on Global Markets, economists suggest that a refusal by Congress to extend unemployment benefits or bail out state and local governments is just as likely to hurt the economy as local economies staying open in spite of COVID-19 spikes.
Pursue self-interest by helping other economies too
July 06, 2020 | Financial Times
Struggling economies must control the virus to minimize damage, and their governments must expand the resources they can devote to economic repair and recovery, says Chicago Booth’s Raghuram Rajan.
Big data suggests a difficult recovery in U.S. jobs market
July 05, 2020 | Financial Times
According to research by Chicago Booth’s Erik Hurst, the 20% employment contraction in mid-April was largely tied to small companies in the consumer services sector.
U.S. unemployment falls to 11%, but new shutdowns are underway
July 02, 2020 | Associated Press
Erik Hurst, an economics professor at Chicago Booth, said many restaurants, bars and gyms can’t survive by operating at half-capacity, and customers are going to be cautious until there is a vaccine.
How citizens and companies can support antiracism in Chicago
July 02, 2020 | Inside Hook
One way companies can combat systemic racism is to employ blind hiring practices, suggests Chicago Booth’s Christina Hachikian. She says that blind hiring helps with intersectionality and promotes an actually diverse workplace.
Four experts break down the blowout June jobs report
July 02, 2020 | CNBC Squawk Box
Chicago Booth’s Austan Goolsbee discusses the June jobs report with Columbia Business School’s Glenn Hubbard, Georgetown’s Nada Eissa and CNBC’s Steve Liesman.
Pandemic Economics Podcast
July 02, 2020 | Pandemic Economics Podcast
Chicago Booth’s Austan Goolsbee and Chad Syverson share new research exploring whether government policy is driving consumer behavior or fear of infection.
The coronavirus is exacerbating global socioeconomic problems, says former RBI governor
July 01, 2020 | CNBC Squawk Box Asia
The pandemic’s exacerbation of political upheaval and socioeconomic inequality is a “source of enormous concern,” says Raghuram Rajan, former governor of the Reserve Bank of India and current professor of finance at the University of Chicago Booth School of Business.
As virus roars back, so do signs of a new round of layoffs
June 30, 2020 | Associated Press
A study by Austan Goolsbee and Chad Syverson of the University of Chicago Booth School of Business found that Americans chose to stay home or avoid crowded stores this spring not necessarily because authorities told them to, but out of fear stemming from reports of COVID-19 deaths.
Facebook ad boycott hands new ammo to legion of Washington foes
June 30, 2020 | Bloomberg
Facebook faces additional antitrust scrutiny from the U.S. Federal Trade Commission, the Justice Department, and a coalition of state attorneys general led by New York’s Letitia James. Chicago Booth’s Guy Rolnik suggests Facebook is not ready for a potential breakup of the company. “If it’s a Biden administration this is what’s going to be on the table,” he says.
Austan Goolsbee: No tradeoff between health and the economy, ‘health problems are the
June 27, 2020 | Full Court Press with Greta Van Susteren
“We have to stop with the attitude that says, ‘Oh it’s a tradeoff between health and the economy,’” says Chicago Booth economist Austan Goolsbee. “The health problems are the economy. If people are afraid, they are not going out of their houses.”
Wallets are already on lockdown: People pare spending as sunbelt
June 26, 2020 | NPR
Chicago Booth’s Austan Goolsbee found that whenever the coronavirus death toll increased, customers dialed back their shopping and stayed home, even if local governments didn’t issue stay-at-home orders. “This is not a thing to be decided by governors or mayors or anybody. People have to feel comfortable to go out. And if they don’t, they’re going to stay home,” he said.
Top 10 MBA programs for human resources management 2020
June 26, 2020 | Find MBA
The University of Chicago Booth School of Business was ranked among the 10 best MBA programs for human resources management for its emphasis on human capital and helping managers understand how they can inspire the people they lead.
A pandemic problem for older workers: Will they have to retire sooner?
June 26, 2020 | The New York Times
The pandemic already has fueled a surge in early retirements, according to a report published recently by Chicago Booth’s Michael Weber and coauthors. “This phenomenon is widespread across older workers, but it really increases at age 65, when economic incentives play a role,” he said, noting that’s when Medicare eligibility begins and full Social Security benefits are on the horizon.
Wall Street’s annual stress test
June 25, 2020 | Bloomberg Surveillance
Chicago Booth’s Randall S. Kroszner discusses the Fed’s annual stress test for the nation’s biggest banks and its new sensitivity analysis, which gauges how well banks can navigate an economy shattered by a global pandemic. Segment begins at 30:35.
Initial impacts of the pandemic on consumer behavior
June 25, 2020 | Brookings Papers on Economic Activity
While household spending has rebounded for certain income groups since mid-April, overall spending remains severely depressed, according to research by Chicago Booth’s Joseph Vavra and Pascal Noel, the University of Chicago’s Peter Ganong, and others. “New stimulus may be needed to maintain spending for low-income, vulnerable households in the near future,” the researchers write.
What economists fear most during this recovery
June 23, 2020 | FiveThirtyEight
The Initiative on Global Markets at Chicago Booth and FiveThirtyEight surveyed 34 quantitative macroeconomic economists about the coronavirus recession and recovery efforts. Seventy-three percent predicted a reverse radical for the country’s economic future—a steep drop followed by a quick partial recovery and a longer period of slower, mixed growth.
Companies criticize visa suspensions, but impact may be muted for now
June 23, 2020 | The New York Times
American companies have become more comfortable with remote work over the past few months, and they may choose to respond to the visa suspension by hiring the same worker but having them work remotely in another country, said Joseph Vavra, associate professor of economics at the University of Chicago Booth School of Business.
Coronavirus and personal debt: The Americans living on a ‘knife edge’
June 22, 2020 | Financial Times
Amir Sufi, an economist at Chicago Booth, argues that because of lower rates and forbearance, the probability of a default crisis is much lower than in 2008. But he sees another risk in all the new debt that will be created to prop up demand.
Buy, borrow, steal: How debt became the ‘sugar-rush’ solution to our economic woes
June 22, 2020 | NPR Hidden Brain
Chicago Booth economist Amir Sufi argues that the buildup of household debt is the single most important driver of severe recessions.
Will the COVID-19 recession be worse than the Great Recession of 2008?
June 22, 2020 | Good Morning America
Economist Austan Goolsbee breaks down the biggest differences and similarities for both recessions, and offers hope on how and why our recovery now might be faster than in 2008.
Randall Kroszner: Bank of England will not want to leave uncertainty hanging over the markets
June 19, 2020 | Sky News
With the challenges facing the global economy, Chicago Booth’s Randall Kroszner suggests the Bank of England will likely take out insurance by buying assets.
Older workers may be retiring early because of the coronavirus
June 18, 2020 | AARP
Many older workers may be choosing early retirement during the COVID-19 crisis, according to a new paper by Michael Weber of Chicago Booth, Olivier Coibion of the University of Texas at Austin, and Yuriy Gorodnichenko of the University of California, Berkeley. The researchers found a seven percent increase in those who identify themselves as retired.
The Fed is pulling out all the stops for the economy: Former CEA chair
June 17, 2020 | CNBC Squawk Box Asia
Austan Goolsbee, former chair of the Council of Economic Advisers and a professor at Chicago Booth, says the Federal Reserve is doing what it should to prevent a permanent economic shock. However, he suggests many of the central bank’s actions are also feeding into the disconnect between the markets and the economy.
White House left states on their own to buy ventilators. Inside their mad scramble.
June 15, 2020 | Kaiser Health News
Although the Department of Health and Human Services has contracts with several companies for nearly 200,000 ventilators by year’s end, Chicago Booth’s Daniel Adelman says it’s important to have a backup plan. “If that’s your Plan A, there’s a risk that those ventilators, they may not all be usable, they may not be available in time, and so on and so forth,” he said.
The economy is reeling. The tech giants spy opportunity.
June 13, 2020 | The New York Times
Amazon, Apple, Facebook, Google, and Microsoft are taking risks by spending in an uncertain period, said Chicago Booth’s John Paul Rollert. “To double and even triple down when the casino is on fire is a remarkable move, because they may not even be able to cash in their chips later on,” he said.
Will COVID-19 be followed by inflation? An inter-generational transfer perspective
June 12, 2020 | VOX
Lubos Pastor, a professor of finance at the University of Chicago Booth School of Business, suggests that the easiest way for central banks to deal with debt from COVID-19 is to tolerate above-average inflation.
For racial justice, employees need paid hours off for voting
June 12, 2020 | The New York Times
Chicago Booth economist Sendhil Mullainathan says corporate America’s expressions of support for the George Floyd protests are often vague; to provide real support for racial equity, he recommends pledging to provide workers time for voting (#time4voting, as he calls it).
Kroszner: Pandemic will change structure of U.S. economy
June 11, 2020 | Bloomberg Daybreak Europe
Randall Kroszner, former Federal Reserve governor and a professor at Chicago Booth, agrees with Federal Reserve chair Jerome Powell that it’s going to be a long, hard slog for economic recovery. He said now is the time to pivot and recognize the long-term challenges facing major industries.
Banks push for capital changes as CECL provisions soar
June 11, 2020 | Risk
A paper coauthored by Chicago Booth’s Haresh Sapra suggests that greater provisions under the Current Expected Credit Loss accounting standard are a “double-edged sword.” As capital dwindles, regulators are more likely to intervene. The prospect of earlier intervention may incentivize banks to pursue lucrative but risky loans.
Global economy to suffer ‘significant scarring,’ IMF says
June 11, 2020 | Bloomberg
The global economy is recovering more slowly than expected from the coronavirus pandemic, according to a video the International Monetary Fund released for the annual Asian Monetary Policy Forum, cohosted by the University of Chicago Booth School of Business.
Raghuram Rajan says the Fed is doing a fantastic job
June 10, 2020 | Bloomberg Surveillance
Raghuram Rajan, a Chicago Booth professor and former Reserve Bank of India governor, says the Federal Reserve is effectively supporting the markets during the COVID-19 pandemic, but it’s facing a short-term disinflation problem.
Want to make better decisions for your family? Think like a poker player
June 10, 2020 | Fatherly
The sunk cost fallacy isn’t efficient, says Ayelet Fishbach, professor of behavioral science and marketing at the University of Chicago Booth School of Business. To make better decisions, she says it’s important to think about what’s missing from your current situation, which helps you focus on the issue at hand.
The Federal Reserve can’t ‘cure all ills’: Former Fed governor Randy Kroszner
June 10, 2020 | Yahoo! Finance The First Trade
The team at Yahoo Finance speaks with former Federal Reserve governor and Chicago Booth deputy dean Randall Kroszner about what we can expect from the Federal Reserve today.
The economists in our survey are slightly more hopeful than they were two weeks ago
June 09, 2020 | FiveThirtyEight
A survey of quantitative macroeconomic economists conducted by FiveThirtyEight and the Initiative on Global Markets at Chicago Booth found that respondents are increasingly optimistic about the country’s economic trajectory—at least when it comes to employment.
Propping up zombie companies will create more zombies: Former Reserve Bank of India
June 09, 2020 | CNBC Squawk on the Street
Raghuram Rajan, former governor of the Reserve Bank of India and professor at the University of Chicago Booth School of Business, joins “Squawk on the Street” to discuss the markets and Fed lending programs.
Why feeling close to the finish line makes you push harder
June 09, 2020 | Scientific American
Oleg Urminsky, a professor of marketing at the University of Chicago Booth School of Business, has been studying the goal gradient hypothesis since he was a doctoral student. The basic idea is that the closer we get to completing a goal, the more motivated we are to achieve it.
‘Central banks can’t cure the virus,’ former Fed governor Kroszner says, and lays out the next
steps policymakers may take to respond to the virus
June 08, 2020 | Markets Insider
As central banks around the world continue to roll out measures to keep their economies afloat during the pandemic, Chicago Both’s Randall Kroszner says there’s only so much they can do. “As a central banker I am never going to say central banks are not powerful but they can’t cure the virus, they can’t unlock economies, and they can’t replace broken supply chains,” he said.
Doubts remain over true scale of U.S. jobless crisis
June 07, 2020 | Financial Times
Although the latest jobs report showed a drop in unemployment, the Bureau of Labor Statistics acknowledged that some furloughed employees had been mislabeled. “At a moment like this, the line is blurry over how furloughed/ hiatus/ temporarily closed workers should be classified,” said Chicago Booth’s Austan Goolsbee. “They gave guidance to the field personnel but clearly there was ambiguity and some reported it one way and some the other.”
Left out: More workers now losing hope of getting back jobs
June 07, 2020 | Associated Press
Forty-two percent of the layoffs caused by the pandemic could become permanent job losses, according to a study by Chicago Booth’s Becker Friedman Institute for Economics.
Will COVID-19 recession leave long-term economic scar? What experts say
June 06, 2020 | CNBC Global Dialogues
Raghuram Rajan of Chicago Booth said governments can’t bailout every company, and many will need to be run through bankruptcy.
Coronavirus shutdowns: Economists look for better answers
June 06, 2020 | The New York Times
The economic cost of COVID-19 lockdowns could have been reduced by a third or more by strategically choosing neighborhoods to close, according to research by Chicago Booth’s John Birge and coauthors. Another study coauthored by Chicago Booth’s Chang-Tai Hsieh came to similar conclusions. “We can do social-distancing in a much smarter way that’s a lot more targeted, in which we get more benefits and less costs,” Hsieh said.
Don’t lose the thread. The economy is experiencing an epic collapse of demand.
June 06, 2020 | The New York Times
What started as a disruption to the supply side of the economy has metastasized into a collapse of the demand side, Chicago Booth’s Veronica Guerrieri and co-authors say in a recent working paper on the macroeconomic implications of COVID-19.
June 05, 2020 | Bloomberg News
Randall Kroszner, former Federal Reserve governor and economics professor at the University of Chicago Booth School of Business, discusses the state of the U.S. labor market ahead of the May jobs report. Segment begins at 1:31:00.
Jobs report took the wind out of the sails of stimulus, Goolsbee says
June 05, 2020 | Bloomberg Markets Balance of Power
Austan Goolsbee, a professor at Chicago Booth and former chairman of the White House Council of Economic Advisers, says the May U.S. employment report will probably cause a “partisan food fight” in Congress over the need for further stimulus.
Central banks can’t cure the coronavirus: Former Fed governor Kroszner
June 05, 2020 | CNBC Squawk Box Europe
Randall Kroszner, former Federal Reserve governor and the Norman R. Bobins Professor of Economics at the University of Chicago Booth School of Business, discusses the economic recovery from the coronavirus crisis.
The pre-coronavirus economy wasn’t all that strong. Why this economist says things
will be worse now
June 05, 2020 | Barron’s
In an interview with Barron’s, Chicago Booth professor Amir Sufi discusses his research on income inequality and the fragility of the global economy, and why it matters in the age of coronavirus.
How to prevent a sovereign debt disaster
June 04, 2020 | Foreign Affairs
To avoid a catastrophic string of coronavirus-related defaults in emerging markets, Chicago Booth economist Chang-Tai Hsieh and coauthors say governments and private creditors must share the burden of providing debt relief.
A nation divided: Peeling back the layers beneath the surface of the George Floyd protests
June 04, 2020 | New York Daily News
Following the killing of George Floyd in Minneapolis, Chicago Booth’s Bernd Wittenbrink and the University of Colorado’s Joshua Correll say responses must address the deep divisions and bias that pervade the nation. “Systemic racial bias is all around us,” they write. “It is not just police officers who make racially biased decisions, it is society at large that is racially biased.”
Don’t end expanded unemployment insurance: Improve it
June 04, 2020 | The Hill
The University of Chicago’s Peter Ganong and Chicago Booth’s Pascal Noel and Joseph Vavra propose a small legislative change to help ensure benefits continue to flow to those in most in need while reducing the concern that people won’t take jobs when they become available.
How many US workers have lost jobs during coronavirus pandemic? There are several ways to
June 03, 2020 | The Wall Street Journal
Varying estimates of job loss triggered by the pandemic all show historically high numbers that are likely to leave a lasting mark on the US economy. “The magnitude and speed of this employment loss is like nothing we’ve ever seen before,” said Chicago Booth economist Erik Hurst. “I think it will take multiple years before we get back to pre-March 2020 levels.”
Office towers are still going up, but who will fill them?
June 02, 2020 | The New York Times
If the economic pain from the COVID-19 pandemic drags on, there could be long-lasting changes to the way people work and how tenants want offices to be reimagined, suggests Joseph L. Pagliari Jr., clinical professor of real estate at Chicago Booth. He said the pandemic has turned salable amenities such as fitness centers and food courts into potential liabilities, while some of the changes—like more spacious elevators—could be costly.
Op-Ed: There’s a psychological reason we won’t return to normal right away after society reopens
June 01, 2020 | Los Angeles Times
As everyday life reopens for business, Chicago Booth’s Ed O’Brien suggests companies should plan for slowed consumption resurgence. “For many of us, the risks to health and safety are still far too high relative to the reward of a premature return,” he says.
Pent-up demand and savings to create spending bounceback, economists predict
June 01, 2020 | Washington Examiner
Pent-up consumer demand from the coronavirus shutdown will create a partial bounceback in economic activity and spending in the coming weeks as the country reopens, economists predict. “People trying to do things they’ve been putting off like dental care, elective medical procedures, and haircuts are likely to see a spike in demand,” said Eric Zwick, a finance professor at the University of Chicago Booth School of Business.
US workers face an unequal future when virus recedes
May 30, 2020 | Barron’s
Michael Weber, an associate professor at the University of Chicago Booth School of Business, warned that if businesses close or scale back staffing, job seekers will be forced to compete against each other, driving wages lower, as is typical in recession job markets.
Which states got the most PPP funding?
May 29, 2020 | Inc.
Regional and community banks in less-populated areas like North Dakota are better at dispersing PPP loans than large national banks with a dominant presence in cities, according to a study coauthored by Constantine Yannelis, an assistant professor of finance at the University of Chicago Booth School of Business.
Raghuram Rajan: Should economies pile up debt to cope with COVID-19?
May 29, 2020 | BBC HARDTalk
The BBC’s Stephen Sackur speaks to Raghuram Rajan, a professor at Chicago Booth and former governor of India’s Reserve Bank, about the current recession and how governments’ should respond to facilitate economic recovery.
Bosses say $600 coronavirus unemployment boost makes reopening harder. Some workers ‘are
making more money than they’ve ever made by not working right now.’
May 28, 2020 | Chicago Tribune
Erik Hurst, an economics professor at the University of Chicago Booth School of Business, doubts people would risk losing their jobs long-term to earn the extra unemployment benefits. In cases where that does happen, he thinks businesses will have an easy time finding new workers.
Pandemic Economics: A case for optimism
May 28, 2020 | NPR 1A
Chicago Booth economist Steven Davis discusses unemployment figures and economic recovery on the Pandemic Economics podcast, a partnership between NPR 1A and the Becker Friedman Institute at the University of Chicago Booth School of Business.
The people hit hardest by pandemic job loss
May 28, 2020 | NPR 1A
Erik Hurst of Chicago Booth and Elise Gould of the Economic Policy Institute discuss the sectors and demographics hit hardest by the COVID-19 shutdowns, which includes women and Latinos as well as the leisure and hospitality industry.
INSIGHT: COVID-19 crisis and
banks’ provisioning models
May 28, 2020 | Bloomberg Tax
The coronavirus relief legislation enacted in March gave financial institutions the option to delay a new loan loss provisioning standard. Haresh Sapra of Chicago Booth and Lucas Mahieux of Tilburg University argue that the delay in implementing the new standard won’t benefit the economy.
How Congress can expedite—or continue to delay—economic
May 27, 2020 | The Washington Post
Recovery from the pandemic’s economic damage will be protracted, according to a new report coauthored by Steven J. Davis of Chicago Booth and Jose Maria Barrero and Nicholas Bloom of the Becker Friedman Institute. The researchers suggest the policies designed to preserve pre-COVID jobs exact a high cost in resource misallocation and taxpayer burden.
World’s biggest lockdown to push 12 million into extreme poverty
May 27, 2020 | Bloomberg
The Rustandy Center for Social Sector Innovation at the University of Chicago Booth School of Business analyzed the unemployment data from the CMIE and found that rural areas were the hardest hit.
Why the world needs a new Bretton Woods moment
May 27, 2020 | The Telegraph
With the global economy facing its greatest upheaval since the Second World War, economists are discussing the need for reform to help nations recover from the crisis. “None of these [global] institutions, with the exception of the World Health Organization, is focused on globally systemic issues,” says Randall Kroszner, a former governor of the Federal Reserve and now a professor at Chicago Booth.
Businesses complain generous jobless benefits make it hard to find workers
May 26, 2020 | NPR Morning Edition
With double-digit unemployment, Chicago Booth’s Joseph Vavra and the University of Chicago’s Peter Ganong argue that maintaining some kind of increased benefits will be vital, but they suggest those benefits could be more closely tied to workers’ old paychecks so as not to discourage a return to work.
Don’t expect a quick recovery. Our survey of economists says it will likely take years.
May 26, 2020 | FiveThirtyEight
The Initiative on Global Markets at Chicago Booth partnered with FiveThirtyEight to survey quantitative macroeconomic researchers about the trajectory of the economic crisis. Overall, the researchers predicted that although the economy will likely begin to improve in the second half of this year, there won’t be a quick rally from this recession.
How the crisis is making racial inequality worse
May 26, 2020 | NPR Planet Money
Job losses due to the pandemic are dramatically concentrated in the low end of the wage distribution, according to research by Chicago Booth economist Erik Hurst. Among the top fifth of income earners, he says about 9% lost their jobs, compared to 35% of the bottom fifth of earners, who are more likely to be black and Latino.
Public disclosure of COVID-19 cases is more effective than lockdowns
May 25, 2020 | Medical Xpress
Public disclosure can help people target their social distancing, enabling vulnerable populations to more easily avoid areas with a higher rate of infection, according to research coauthored by Chicago Booth’s Chang-Tai Hsieh that examines Seoul’s measures to battle COVID-19.
For economy, worst of coronavirus shutdowns may be over
May 25, 2020 | The Wall Street Journal
Chicago Booth economist Constantine Yannelis says there have been positive signals in household spending, the real-estate market, and the stock market this month. “I don’t think we can predict whether those are going to continue and this is going to be a V-shaped recovery or this is going to be a sustained, prolonged depression,” he suggests.
The COVID-19 shutdown will cost Americans millions of years of life
May 25, 2020 | The Hill
Lost economic output in the U.S. is 5% of GDP, or $1.1 trillion for every month of the economic shutdown, according to research by John R. Birge of Chicago Booth, Ralph L. Keeney of Duke and the University of Southern California, and Alexandor Lipton of the Jerusalem Business School. The researchers suggest that the stresses associated with this lost income results in lost lives.
Richest nations face $17tn government debt burden from coronavirus
May 24, 2020 | Financial Times
OECD member countries are expected to take on at least $17 trillion of extra public debt as they battle the economic consequences of the pandemic. Randall Kroszner, a professor at Chicago Booth and a former Federal Reserve governor, said the situation raises questions about the long-term sustainability of high levels of public and private debt. “We have to face the hard reality we’re not going to have a V-shaped recovery,” he said.
The Spin: Lightfoot dismisses Trump’s call for churches to reopen | Will the
mayor get a casino win in Springfield? | Rahm Emanuel’s talking to Joe Biden
May 22, 2020 | Chicago Tribune
As Chicago mayor Lori Lightfoot and Illinois governor JB Pritzker issue more PSAs and news conferences amid the COVID-19 crisis, Chicago Booth’s Pradeep K. Chintagunta says it offers the public a chance to get to know the first-time elected leaders. “In general, I think the main objective of a public servant is to be in the minds and eyes of the public—that’s the most important thing,” he said.
How to keep workers off the job
May 22, 2020 | The Wall Street Journal
According to a study coauthored by Chicago Booth’s Joseph Vavra, 68% of laid-off workers are now making more unemployed as a result of enhanced benefits under the CARES Act.
China hopes its new digital currency will internationalize the RMB. When might that day come?
May 22, 2020 | Forkast.News
China just piloted its new DCEP—the world’s first major central bank digital currency—in four cities. Chicago Booth economist Zhiguo He predicts it could take several years for the currency to reach the stage where it could be exported to countries doing business with China.
Which post-pandemic government?
May 22, 2020 | Project Syndicate
Although the COVID-19 pandemic has shown that high-level coordination is sometimes necessary for managing emergencies, it has also underscored the risks of placing too much power in the hands of a central authority, suggests Chicago Booth’s Raghuram Rajan. He says the best approach is a middle path, with a slight bias in favor of decentralization.
India faces a major economic catastrophe, PMO can’t handle by itself, says Raghuram Rajan
May 21, 2020 | The Wire
Raghuram Rajan, a professor at Chicago Booth and former governor of the Reserve Bank of India, says more needs to be done, and faster, if India’s economy is not to be reduced to a shadow of its former self.
The law of supply and demand isn’t fair
May 20, 2020 | The New York Times
It isn’t socially acceptable to raise prices of essential items during an emergency, but Chicago Booth’s Richard Thaler says this social norm predictably leads to shortages like those seen during the early weeks of the coronavirus crisis in the United States.
Work hard, Zoom hard
May 20, 2020 | Chicago Magazine
As COVID-19 changes workers’ relationships with employers, Chicago Booth’s John Paul Rollert suggests it will also reshape government’s role in the workplace. “After this, we’re going to have a conversation about the types of social insurance we only see in northern Europe,” he said.
As reopening becomes polarized, businesses need to use common-ground language
May 19, 2020 | Fortune
As conversations around COVID-19 become increasingly polarized, companies will have to think carefully about how they communicate their plans for resuming business. “If they’re not only doing the thing that one side opposes, but also speaking in a way that angers that side, they risk even more criticism,” says Christopher Bryan of Chicago Booth. He recommends identifying and steering clear of word “land mines.”
Too big to fail: The entire private sector
May 19, 2020 | The New York Times
In a bid to soften the coronavirus’s economic blow, the government has stretched its financial safety net wide—from strategically sensitive companies to entire industries. “The ‘too big to fail’ that existed for banks has now extended to a lot of other firms,” said Chicago Booth’s Luigi Zingales, who has long studied the interplay of government, regulation, and the private sector.
Is the bear market over? Wall Street isn’t so sure
May 19, 2020 | CNN Business
The U.S. stock market’s recent rebound suggests that investors are optimistic about a rapid economic recovery from the coronavirus crisis. But Chicago Booth’s Randall Kroszner thinks this optimism may be misplaced. “It will take a long time for the economy to fully recover because there are fundamental changes that are occurring. The ways people consume, travel, and work are going to change,” he said.
Many low-wage workers earn more on unemployment than in their former jobs
May 19, 2020 | CBS News
About 68% of unemployed workers who can collect unemployment will get benefits that top what they previously earned at work, according to Chicago Booth’s Pascal Noel and Joseph Vavra and the University of Chicago’s Peter Ganong. The economists said that the expanded unemployment aid has benefitted the “lowest income workers, who might otherwise be especially hurt by this recession.”
Making veggie burgers doesn’t help the climate, impossible CEO says
May 18, 2020 | Forbes
The Rustandy Center for Social Sector Innovation at Chicago Booth hosted a webinar with Impossible CEO Patrick Brown to discuss the impact of animal agriculture on the environment and the company’s efforts to make a plant-based meat.
Crisis exposes how America has hollowed out its government
May 16, 2020 | The Washington Post
Chicago Booth’s Steven J. Davis says much of the federal government’s response to the pandemic has been “predicated on the idea that we’re just going to take a holiday for a few months and then go back to where we were.”
Patients want medical guidance when making care decisions
May 15, 2020 | HCP Live
In a recent study, Chicago Booth’s Emma Levine and coauthors found that people want expert guidance when making decisions about their medical care. “Our results suggest that advisees facing difficult decisions do not perceive autonomy as the gold standard,” Levine said.
Studies differ on how fast to open economy
May 15, 2020 | Pittsburgh Post-Gazette
A report coauthored by Chicago Booth’s Robert H. Topel recommends reopening the economy sooner rather than later for most age groups while isolating at-risk groups, including senior citizens.
Why this economist says 42% of coronavirus-related job losses will be permanent
May 15, 2020 | CNBC Power Lunch
Steven Davis of the University of Chicago Booth School of Business discusses his new study, which finds many of the jobs lost during the economy’s self-reduced recession may never come back.
Have the record number of investors in the stock market lost their minds?
May 15, 2020 | The New Yorker
Since the shutdowns began, many investors have taken advantage of this era of free trades, which began before the coronavirus pandemic hit, to exploit what they seem to view as a good money-making opportunity. When asked about the surge in online trading, Chicago Booth professor and Nobel laureate Richard Thaler suggested getting rid of commissions shouldn’t have had a substantial impact.
New stimulus needed: $1,200 check had little impact on economy
May 15, 2020 | Forbes
A new study cowritten by Chicago Booth’s Constantine Yannelis found that the effectiveness of the stimulus checks varied widely depending on who received them.
Trump’s bizarre wish list: Higher oil prices and negative interest rates
May 15, 2020 | CNN Business
Pushing for negative interest rates could undercut President Trump’s efforts to instill confidence in the economy, Chicago Booth’s Randall S. Kroszner suggests. “It sends off a bad vibe that we’re in deep trouble and have no expectation of stronger economic growth,” he said.
Many Americans are getting more money from unemployment than they were from their jobs
May 15, 2020 | FiveThirtyEight
Using government data from 2019, a new analysis by the University of Chicago’s Peter Ganong and Chicago Booth’s Pascal Noel and Joseph Vavra estimates that 68% of unemployed workers who can receive benefits are eligible for payments that are greater than their lost earnings.
Is your company’s narrative stopping you from planning effectively?
May 15, 2020 | Crain’s Chicago Business
If your company’s narrative is stopping you from planning effectively, Chicago Booth’s Reid Hastie advises incorporating more mathematical thinking in decision-making.
Flight to safety by India households may benefit banks, insurers
May 15, 2020 | Bloomberg
About 84% of Indian households saw their incomes fall last month under the world’s strictest shelter-at-home rules, and many won’t survive much longer without assistance, a study by the Chicago Booth’s Rustandy Center for Social Sector Innovation found.
What economic lessons will the world learn from COVID-19?
May 14, 2020 | CNN Business
The global economy was caught flat-footed by COVID-19. Chicago Booth’s Raghuram G. Rajan and other leading economists share what the post-COVID economy will look like and what lessons should be learned.
COVID-19 amplifying inequality with regards to gender and race in Chicago
May 14, 2020 | Fox32 Chicago
Carmelo Barbaro, executive director of the UChicago Poverty Lab, elaborates on his team's findings on how COVID-19 is disproportionately affecting Chicagoans based on race and gender.
Pandemic Economics: Job Loss And Child Care
May 14, 2020 | NPR 1A
In this series featuring podcast Pandemic Economics, in partnership with the Becker Friedman Institute at the University of Chicago, Chicago Booth's Erik Hurst discusses job losses and childcare concerns during the coronavirus crisis.
If saving during a pandemic is hard, here’s how to stay motivated
May 14, 2020 | The Wall Street Journal
Chicago Booth’s Abigail Sussman suggests that maintaining a savings mindset can help people stay focused on long-term goals. “Having higher-level savings goals in mind becomes really important in terms of keeping your eye on ‘How can I continue to be really making financially-wise decisions and financially-efficient decisions, even if I’m taking on debt?’” Sussman said.
U.S. leaders should approach current economic issues as a venture capitalist would, according to an economist
from Chicago Booth
May 14, 2020 | Business Insider
In an interview with Business Insider, Chicago Booth’s Anil Kashyap shares his outlook for the U.S. economy and what policy prescriptions would be the most effective, including giving funds to businesses struggling with liquidity to buy them some time.
Fed chair warns of long, painful downturn if Congress does not provide more economic relief
May 13, 2020 | The Washington Post
With lawmakers and the White House in a standoff about next steps in the pandemic, Chicago Booth’s Randall Kroszner suggests there’s a limit to what the Fed can do. “The Fed cannot cure the virus. The Fed can’t repair broken supply chains,” he said. “The Fed will do what it can, but it is not all-powerful.”
Uber + Grubhub = antitrust problems
May 13, 2020 | Crain’s Chicago Business
Uber’s plan to buy Grubhub raises antitrust concerns that could further complicate an already tricky all-stock deal. “I am sure the proposed deal will receive close antitrust scrutiny,” said Chicago Booth’s Chad Syverson. “It is basically a three-to-two merge ... It is unusual for such mergers to be legally successful when proposed.”
Over one-third of Indian households may run out of
resources in another week: CMIE Survey
May 13, 2020 | The Economic Times
Nearly 84% of households in India have suffered a decrease in monthly income during the lockdown and more than one-fourth of the working age population is unemployed, according to a new study by Chicago Booth’s Marianne Bertrand, the Wharton School’s Heather Schofield, and CMIE’s Kaushik Krishnan.
Business cannot simply awake from this coma and carry on
May 12, 2020 | Financial Times
Chicago Booth’s Raghuram Rajan says business reopening will likely be long drawn out. Many companies will have to change what they do and how they do it, while others will no longer be viable.
Paycheck Protection Program goes from popular to pariah
May 11, 2020 | CBS News
The volume of loans approved through the Small Business Administration’s Paycheck Protection Program dropped 84% last week. Noting the slowdown in lending, Chicago Booth’s Michael Minnis said demand for PPP loans may have peaked.
Calls for debt monetization gain traction as COVID-19 cripples
May 10, 2020 | The Economic Times
Raghuram Rajan, a professor at Chicago Booth and former governor of the Reserve Bank of India, has pitched for monetizing public debt and a higher fiscal deficit to protect the economy as well as the poor and the vulnerable during the pandemic.
Becoming ‘King of Ventilators’ may result in unexpected glut
May 10, 2020 | Associated Press
Dan Adelman, a professor at the University of Chicago Booth School of Business who teaches health care analytics, said the U.S. government is now buying more than twice the number of ventilators it needs, even under a worst-case scenario forecasting the spread of COVID-19.
Five experts explain what April’s historic job loss means for markets and economy
May 08, 2020 | CNBC Squawk Box
Chicago Booth’s Austan Goolsbee joins BlackRock’s Kate Moore and former CEA chairman Glenn Hubbard on “Squawk Box” to give their initial reactions to the historic April jobs report.
The awful reason wages appeared to soar in the middle of a pandemic
May 08, 2020 | The Washington Post
The U.S. economy shed a record total of 20.5 million jobs in April as the unemployment rate hit its highest levels since the Great Depression. “You can’t understate how historic this change in the labor market is,” said Chicago Booth economist Erik Hurst. "It took the Great Depression 2.5 years to see the employment declines we’re seeing in six weeks.”
COVID hits job market harder than any recent recession
May 08, 2020 | Crain’s Chicago Business
Amid the pandemic, the American labor market has deteriorated faster and on a grander scale than in any recent recession, according to a new study coauthored by Chicago Booth’s Erik Hurst. “There’s no panacea that we have in our toolkit that is going to stem 22 percent employment loss,” Hurst said.
Coronavirus pandemic sends nation’s unemployment rate to 14.7%
May 08, 2020 | Los Angeles Times
Chicago Booth's Steven J. Davis points to two federal aid programs that might only serve to slow recovery, rather than speed it.
Monetization neither a game changer nor a catastrophe, says Raghuram Rajan
May 08, 2020 | BloombergQuint
Chicago Booth’s Raghuram Rajan weighs in on whether the Indian central bank should monetize the government’s additional financing requirements during the crisis.
Data shows unemployed Americans are optimistic, despite predictions of slow recovery
May 07, 2020 | Sinclair Broadcast Group
Steven J. Davis and colleagues put out a study predicting about 40% of layoffs made during the pandemic will be permanent.
Low-wage jobs are biggest labor market victim so far.
May 07, 2020 | The New York Times
Erik Hurst reports that 40 percent of all the jobs lost so far are in firms that appear to have stopped operating, either temporarily or permanently, amid the crisis.
The economic recovery hinges on a big unknown: human behavior
May 06, 2020 | CNN Business
As some states reopen parts of their economies, Chicago Booth’s Raghuram G. Rajan and other experts weigh in on whether consumer behavior will drive or stall our economic recovery.
Is it safer to visit a coffee shop or a gym?
May 06, 2020 | The New York Times
Research from Chicago Booth’s Sendhil Mullainathan and Devin Pope and the University of Chicago’s Katherine Baicker and Oeindrila Dube offers policy guidance for minimizing both the spread of the virus and the economic hardship of the pandemic.
People across most income groups are more anxious about the economy during COVID-19
May 05, 2020 | Marketplace
With a lot of job losses concentrated in lower income tiers, pandemic relief checks and jobless benefits are so important, says Chicago Booth’s Constantine Yannelis. He’s been studying how much of that money is being spent right away, and found much larger responses for people who have less than $500 in their accounts.
Texas reopens? Why restaurants, stores are still struggling for customers
May 05, 2020 | International Business Times
Throughout the country, consumers have shown little confidence to return to businesses when there is no vaccine or cure for COVID-19. “I think it’s going to be very hard to just go back to business as usual,” said Chicago Booth’s Randall Kroszner. “In many areas, particularly in the consumer-facing areas, it’s going to be very different.”
Faces, faces everywhere
May 05, 2020 | The New York Times
Social psychologists have found that when people are longing to socialize, they are more likely to perceive human-like traits in inanimate objects. After a month or more of social distancing, people may well be seeing more phantom faces than usual, says Chicago Booth’s Nicholas Epley.
Ventilator sharing among states critical to save COVID-19 patient lives: Health Affairs paper
May 04, 2020 | Medtech Dive
The federal government must coordinate a nationwide program that encourages states to exchange available ventilators based on their varied peaks in demand driven by the COVID-19 pandemic, according to a new research article by Chicago Booth professor Dan Adelman.
April jobs report likely to show highest unemployment rate on record
May 03, 2020 | The Wall Street Journal
Chicago Booth economist Joseph Vavra identified the six industries most vulnerable to coronavirus shutdowns: restaurants and bars, travel and transportation, entertainment, personal services, some retail, and some manufacturers.
A solution to the looming debt crisis in emerging markets
May 03, 2020 | Financial Times
A handful of prominent financial and legal academics, including Chicago Booth’s Chang-Tai Hsieh, have offered up a solution to the looming debt crisis that would offer vital relief to many developing countries, avoid technical defaults, and appeal to many creditors.
Retail chains face uphill battle getting shoppers back in stores
May 02, 2020 | The Hill
As major retailers start to reopen, they face the challenge of convincing consumers it’s safe to make purchases in person. Chicago Booth’s Nicole DeHoratius suggests appointment shopping could be an effective approach. “It allows one to minimize contact with others and it helps with the track-and-trace process should there be that need,” she said.
Fatigue is here, but the economic fight is just beginning
May 01, 2020 | The New York Times
Many Americans are already exhausted by the fight against COVID-19, but Chicago Booth economist Austan Gooslbee says that the government must maintain public support to limit the long-run damage precipitated by the virus.
Go ahead, call that old friend. It will go better than you think.
May 01, 2020 | Chicago Tribune
Chicago Booth’s Nicholas Epley says that prior to the lockdown, we often connected with people accidentally—in a hallway, on a train, at a meeting. “These connections just happen. You don’t have to make a decision,” he said. “Now social connection is something you have to decide to do. Any barriers in the choice are magnified.”
Cash for COVID? Will direct payments help keep Americans afloat?
May 01, 2020 | The Benchmark
According to research by Chicago Booth’s Marianne Bertrand and UC Berkeley’s Adair Morse,
direct cash payments can help people reduce high-interest debt and improve their financial situation during a downturn.
May 01, 2020 | Crain’s Chicago Business
In Chicago and elsewhere, the business community and political leaders are grappling with how and when to reopen the economy. The fate of an economic recovery will rely heavily on public confidence, suggests Booth’s Eric Zwick.
U of C Booth School of Business professor on the U.S. economy during COVID-19
April 30, 2020 | WGN News
The number one rule of virus economics has little to do with economics and everything to do with the virus, suggests Chicago Booth economist Austan D. Goolsbee.
Thousands of lives could be saved in the U.S. during the COVID-19 pandemic if states exchanged ventilators
April 30, 2020 | Health Affairs
In a new research paper, Chicago Booth’s Dan Adelman proposes that the federal government organize a national effort for ventilators to be exchanged between states in the absence of other viable solutions.
April 30, 2020 | Reuters
A group of economists and legal scholars, including Chicago Booth’s Chang-Tai Hsieh and Columbia University’s Patrick Bolton, drafted guidelines for a standstill on debt payments by some sovereign borrowers. Developing and emerging countries would use this money to fight the COVID-19 health crisis.
COVID-19 crisis sparks ‘early retirement’ wave
April 30, 2020 | MarketWatch
The onset of the COVID-19 crisis led to a wave of earlier than planned retirements and a decline in labor-force participation, according to research from Chicago Booth’s Michael Weber, University of Texas at Austin’s Olivier Coibon, and University of California at Berkeley’s Yuriy Gorodnichenko.
Raghuram Rajan warns against centralization of power in India amid COVID-19 pandemic
April 30, 2020 | Quartz
“Decentralization of power” is the cure for India’s coronavirus-induced economic slowdown, according to Raghuram Rajan, the country’s former central bank governor and a professor at Chicago Booth. He said there’s a need to empower local governments, which are better placed to understand the needs of people.
The Fed’s toolbox with Kroszner (podcast)
April 29, 2020 | Bloomberg Surveillance
Randall Kroszner, a professor and dean at Chicago Booth and former governor of the Federal Reserve, discusses how the Fed may unwind its balance sheet.
How Chicago is uniting for the greater good
April 28, 2020 | Forbes
The Polsky Center for Entrepreneurship and Innovation, a top-ranked business accelerator at the University of Chicago, recently launched a free, week-long Small Business Bootcamp to provide support and guidance to small businesses affected by the pandemic. Over 1,200 participants were engaged by Chicago Booth professors and business experts.
The economy is dead, Schork says (podcast)
April 27, 2020 | Bloomberg Surveillance
Austan Goolsbee, an economist at the University of Chicago Booth School of Business, says historically, societies affected by plagues have taken on nationalistic behaviors.
This is what waking from an economic ‘coma’ might look
April 27, 2020 | CNN Business
Leading economists, including Chicago Booth’s Raghuram G. Rajan, weigh in on how to restart the world’s largest economy and what setbacks to expect.
U.S. loans didn’t flow to businesses most at risk, study shows
April 27, 2020 | Bloomberg
About 15% of small businesses in regions hit hardest by the coronavirus pandemic received funds from the Paycheck Protection Program, according to a study by Chicago Booth’s João Granja, Constantine Yannelis, and Eric Zwick and MIT Sloan’s Christos Makridis. In congressional districts least affected, firms received double that share.
Reopening has begun. No one is sure what happens next.
April 25, 2020 | The New York Times
As politicians and public health experts debate when to allow businesses to reopen, Chicago Booth economist Joseph S. Vavra suggests a gradual reopening will present challenges. “We live in an economy where there are lots of interconnections between different sectors,” he said.
A big, once-reliable source of investor cash is drying up
April 24, 2020 | The New York Times
As companies struggle to conserve enough cash to stay afloat during the coronavirus recession, one thing they're cutting is their dividend. “What’s happening to dividends is rough for people who rely on them, but the issue is much less visible than it was a few decades ago,” said Chicago Booth professor and Nobel laureate Richard Thaler.
The necessity of a global debt standstill that works
April 23, 2020 | Project Syndicate
G20 governments recently agreed to suspend bilateral official loan repayments from 76 of the world’s poorest countries until the end of 2020. To enable emerging and developing economies to withstand the economic shock of COVID-19, the debt standstill must also include all private creditors, suggests Chicago Booth’s Chang-Tai Hsieh and coauthors.
COVID-19 is pushing Americans into early retirement
April 23, 2020 | Quartz
Along with the spike in U.S. jobless claims, there’s been a historic drop in the number of Americans looking for work. A new study coauthored by Chicago Booth’s Michael Weber finds that early retirements almost fully explain the decline.
You’re not going back to normal office life for a long, long time
April 22, 2020 | Vice
The biggest question facing the U.S. economy is when workers will be able to get back to work. To minimize the risk of an outbreak, employers will need to figure out the smallest number of people they need in the office for the business to function properly, said Chicago Booth’s Jonathan Dingel. That group will rarely include anyone who can work from home.
The Finance 202:
Economists and banking analysts debate whether new small business money will be enough
April 22, 2020 | Washington Post
The Senate increased funding for the Paycheck Protection Program for small businesses. According to calculations by economists at Chicago Booth, including Michael Minnis, the funding boost gets the program in the neighborhood of the $720 billion it needs to keep eligible companies afloat until early summer.
Morning Money virtual interview with Austan Goolsbee
April 22, 2020 | Politico
Austan Goolsbee, a professor at Chicago Booth and former chairman of the Council of Economic Advisers in the Obama administration, spoke with Politico’s chief economic correspondent about the pandemic’s impact on the United States and the latest efforts to reopen the economy.
Raghuram Rajan cautions against giving communal colour to
April 22, 2020 | The Economic Times
Raghuram Rajan, a professor at Chicago Booth and former governor of the Reserve Bank of India, said nationalism that was already pretty strong before the virus is getting accentuated by the effects of COVID-19.
The Senate just approved $310 billion more for PPP loans. These Chicago businesses
are waiting for their turn at the funds.
April 21, 2020 | Chicago Tribune
Michael Minnis, an accounting professor at University of Chicago’s Booth School of Business, has published research calculating it will take about $720 billion to assist all small businesses that might apply for a loan, leaving a potential funding gap of as much as $60 billion.
What you need to know about getting approved for a new credit card amid the coronavirus
April 21, 2020 | Wirecutter
“Many banks have reduced margins on existing credit card borrowers,” said Booth professor Michael Weber.
Publicly traded firms get $300M in small-business loans
April 21, 2020 | Associated Press
Michael Minnis, who has studied the SBA program as an accounting professor at the University of Chicago Booth School of Business, said he understood the frustrations of smaller businesses that have not received funding when publicly listed companies have. But he said it would be hard to go into the program and change the parameters now.
Booth professor Michael Minnis estimates the program might need to dispense $720 billion to meet demand.
Slow coronavirus spread, fix economy
April 20, 2020 | Automotive News
Booth professor and former White House adviser Austan Goolsbee says for industry rescues to be successful, the wider economy must also be restored.
Paycheck Protection Program billions went to large companies and missed virus hot spots
April 17, 2020 | CBS News
Professor Michael Minnis has co-authored a preliminary study on the Paycheck Protection Program and sees few links between where the biggest economic need is during the COVID-19 crisis and where the government funds are going.
Commentary: For your neighbours’ sake, turn the volume down this stay-home period
April 17, 2020 | Channel News Asia
Loud neighbors may be impeding the success of home-based learning and telecommuting during stay-at-home measures. Recent work by Joshua T. Dean, an economist and behavioral scientist at Chicago Booth, shows that exposure to noise lowers worker productivity and decreases cognitive functioning.
Either analyze your mistakes or repeat them, small-biz owners
April 17, 2020 | Crain's Chicago Business
Even when we know logically that sharing negative information or learning from it is for the best, we tend not to do it, says Chicago Booth professor Ayelet Fishbach.
Three experts break down latest unemployment and housing start data
April 16, 2020 | CNBC Squawk Box
Austan Goolsbee, a professor at Chicago Booth and former chairman of the White House’s Council of Economic Advisors, joins fellow economic experts on Squawk Box to discuss the latest weekly jobless claims amid the coronavirus crisis.
A new logo is being rolled out to unite the Hispanic community. But will it catch
April 16, 2020 | Chicago Tribune
A diversity and inclusion nonprofit wants to bring the Hispanic community together under one symbol, but Chicago Booth’s Pradeep Chintagunta says these types of broad campaigns tend to have a hard time. “One of the biggest challenges for this community is that you are trying to appeal to a diverse group,” he said.
‘Huge numbers may be pushed into dire poverty or starvation…we need to secure them’
April 16, 2020 | The Indian Express
As it becomes clear that the lockdown will go on for quite a while, Raghuram G. Rajan says that a huge number of people will be pushed into dire poverty or even starvation by the loss of their livelihoods and by interruptions to delivery mechanisms.
Lack of savings worsens the pain of coronavirus downturn
April 15, 2020 | Wall Street Journal
With little or no money set aside before the pandemic, many Americans will fall behind on their bills. One of the reasons for the savings shortage has to do with the continuing effects of the debt that households accumulated before the 2007–09 recession, suggests a new paper coauthored by Chicago Booth’s Amir Sufi.
G20 finance ministers discuss debt relief for world’s poorest countries
April 15, 2020 | Channel News Asia
Randall S. Kroszner, deputy dean and professor of economics at the University of Chicago Booth School of Business, discusses the proposed debt moratorium and how it will help struggling economies during the COVID-19 pandemic.
Trump is predicting a rapid economic recovery. Experts say it’s not likely.
April 15, 2020 | NBC News
Anil Kashyap, an economics professor at Chicago Booth, said it’s fair to say the economy won’t be booming by the end of the year. “The economy’s in free fall right now. It’s hard to imagine that ceasing when the right thing for people to do is stay home,” he said.
With economy in upheaval, graduating college seniors’ hopes for future dashed:
‘I’m losing a lot’
April 15, 2020 | Chicago Sun-Times
According to Chicago Booth’s Jonathan Dingel, new college graduates could see a loss in earnings throughout their careers as a result of the pandemic. “Just getting your first step on that job ladder is more difficult when we’re in tough economic times, so unfortunately people that are just entering the labor force right now [are] going to find it to be quite difficult,” he said.
Was congress right to delay new credit loss accounting rule implementation amid pandemic?
April 15, 2020 | Reuters
While banks have welcomed the option to delay adopting the U.S. accounting standard-setter’s new credit loss rules until the end of the national emergency, Chicago Booth’s Haresh Sapra suggests the legislative effort may have been misguided.
How the coronavirus punishes many older workers
April 14, 2020 | Forbes
A new study from Chicago Booth professors Jonathan Dingel and Brent Neiman finds that industries where telework is a practical option tend to employ better-educated workers. Among the ones least amenable to telework employ large numbers of low-wage older workers.
We’re holding tight to our good luck talismans
April 14, 2020 | The New York Times
During the global health crisis, people are looking for anything to stabilize themselves, even superstition, suggests Jane Risen, a professor of behavioral science at Chicago Booth. “We like to be able to predict and control our environments, and even an illusory sense of predictability is better than not having any,” she said.
Coronavirus scars might weaken economy for years to come
April 12, 2020 | Wall Street Journal
Stefan Nagel of Chicago Booth and Ulrike Malmendier of the University of California, Berkeley, find that long-term attitudes toward risk are affected by the personal experience of investing when younger. “It’s this younger generation that over the next year will tend to be more pessimistic about returns and risky assets and choose more conservative portfolios,” Nagel said.
50% overall dip in purchases: Household spending swings dramatically in reaction to coronavirus
April 10, 2020 | Phys.org
According to research co-authored by a Chicago Booth economist Constantine Yannelis, stay-at-home orders spurred distinctive spending across gender and age demographics, income groups, and political affiliation. “These spending habits tell us more about how and when U.S. households reacted to the growing crisis,” said Yannelis.
IMF ropes in Raghuram Rajan, 11 others to external advisory group
April 10, 2020 | BloombergQuint
International Monetary Fund managing director Kristalina Georgieva named Chicago Booth’s Raghuram Rajan, former governor of the Reserve Bank of India, to her external advisory group to provide his perspective on key developments and policy issues, including responses to the coronavirus pandemic.
‘The virus is the boss’: Ex-Obama economic adviser doubts Trump
goal of reopening economy by May
April 10, 2020 | MSNBC 11th Hour
Booth’s Austan Goolsbee threw cold water on the growing White House narrative that the nationwide lockdown could end in just a few weeks, pointing out that aspirational economic timelines won’t survive against a public health crisis.
Coronavirus: Western economies slow to react to crisis, says leading economist
April 09, 2020 | BBC News
The coronavirus was “taken a little more lightly” by western economies compared to those in Asia, says former IMF chief economist Raghuram Rajan.
Three experts explain another week of historic jobless claims and the Fed’s lending programs
April 09, 2020 | CNBC Squawk Box
Chicago Booth’s Austan Goolsbee joins Columbia Business School’s Glenn Hubbard and BlackRock’s Kate Moore to discuss the latest weekly jobless claims amid the pandemic as well as the Federal Reserve’s series of loan programs.
37% of jobs can be done from home, according to a new economic analysis
April 09, 2020 | Forbes
The percentage of jobs that can be completed from home is rising fast, according to a new working paper released by University of Chicago economists Jonathan Dingel and Brent Neiman.
Virus throws millions more out of work, and Washington struggles to keep pace
April 09, 2020 | The New York Times
An analysis by Booth economists of data from Homebase, which supplies scheduling software for small businesses that employ hourly workers, suggests more than 40% of those firms have closed since the crisis began.
The COVID-19 default time bomb
April 09, 2020 | Project Syndicate
Booth’s Chang-Tai Hsieh suggests that the International Monetary Fund should coordinate a broad debt moratorium as developing-country governments focus huge sums on keeping citizens healthy.
Many small businesses are at risk of missing the rescue
April 08, 2020 | Barron’s
While the CARES Act provides $349 billion for small-business loans, two features of the program may prevent it from helping as many businesses as it could, suggest John Barrios and Michael Minnis of Chicago Booth and Petro Lisowsky of the Boston University Questrom School of Business.
‘It’s getting into territory that actually both the Treasury and the Fed haven’t been in before’: Randall Kroszner on pandemic
April 08, 2020 | Yahoo! Finance
Randall Kroszner, former Federal Reserve governor and deputy dean at Chicago Booth, breaks down what’s next for the Fed and small businesses as the coronavirus outbreak continues to spread globally. He joins Yahoo Finance’s On the Move panel to discuss.
Trump’s ineptness may prolong the recession
April 07, 2020 | The Washington Post
Booth’s panel of economic experts explained that the economy cannot be restarted until people are confident they can return to communal life. Many of the experts, including Booth professor Austan Goolsbee, empasized the need for more tests.
Why many ‘essential’ workers get paid so little, according to experts
April 06, 2020 | The Washington Post
Marianne Bertrand, a professor at Chicago Booth, says policymakers have tools at their disposal to improve the lot of low-wage workers who do the economy’s most essential jobs. Whether the pandemic changes their inclination to use those tools remains to be seen.
How India can restart the economy after lockdown
April 06, 2020 | The Economic Times
Chicago Booth professor Raghuram Rajan suggests that the coronavirus may be the greatest emergency India has faced since Independence. However, he believes that “with the right resolve and priorities, and drawing on India’s many sources of strength, it can beat this virus back, and even set the stage for a much more hopeful tomorrow.”
How economists, too, are taking on the coronavirus crisis
April 05, 2020 | The New York Times
Chicago Booth’s Chang-Tai Hsieh worries that simply protecting jobs, or the income of newly jobless workers, isn’t enough to combat COVID-19’s economic shock. The University of Chicago’s Michael Greenstone worries that policymakers aren’t thinking through the current containment policy until the end.
The EU must be forged in this crisis or it will die
April 05, 2020 | Financial Times
“Sharing the risk of idiosyncratic shocks makes perfect economic sense and is not the type of transfer justifiably feared by northern Europeans,” writes Chicago Booth professor Luigi Zingales. “It also makes perfect political sense.”
Is Trump admin. doing enough to deal with ‘unbelievably awful’ unemployment?
April 02, 2020 | MSNBC 11th Hour
Has the president done enough to deal with the economic crisis the coronavirus pandemic is creating? Austan Goolsbee, professor at Chicago Booth and former chairman of the Council of Economic Advisers to President Obama, discusses on the 11th Hour.
After the coronavirus passes, your world will not go back to normal
April 02, 2020 | BuzzFeed News
Luigi Zingales, a finance professor at Chicago Booth, told BuzzFeed News that we don’t know yet how effective the CARES Act will be but added it wasn’t targeted at the right industries. “I see this as purely an electoral move, which is not justified from an economic point of view,” he said.
Lower the rent during the coronavirus pandemic
April 01, 2020 | Wall Street Journal
“The legal system will buckle without a simple means for commercial tenants and their landlords to renegotiate leases,” write Richard Thaler, a professor at Chicago Booth, and Jeff Severts, executive director of the University of Chicago’s Center for RISC. Together with Booth’s Steven Levitt and Sendhil Mullainathan, they created a simple, customizable one-page lease addendum.
COVID-19 is a global problem that needs a global solution
April 01, 2020 | Chicago Booth Review
The medical crisis created by COVID-19 is creating pressure for countries to move toward isolationism. But Chicago Booth’s Raghuram G. Rajan points out that the coronavirus is a global problem, and solving it will require international cooperation.
Save capitalism from the CARES Act
March 30, 2020 | Wall Street Journal
While government intervention is needed to address the pandemic, Luigi Zingales of Chicago Booth and Amit Seru of Stanford suggest the CARES Act (Coronavirus Aid, Relief, and Economic Security) isn’t the right way to go about it. “Since the lockdowns constrain supply, stimulating demand would lead only to a rise in prices,” they said.
Economists agree with doctors that prematurely lifting lockdown would be disastrous
March 30, 2020 | Los Angeles Times
A panel of 44 economists assembled by the Chicago Booth School of Business agreed that the economic impact would be even worse if stringent rules were abandoned while the likelihood of a resurgence in infections remains high.
March jobs report unlikely to show full impact of the coronavirus crisis
March 30, 2020 | Wall Street Journal
While millions of workers are working remotely now, just 34% of American jobs can plausibly be performed at home, University of Chicago economists Jonathan Dingel and Brent Neiman estimate.
Fauci predicts over 100,000 COVID-19 deaths in the United States
March 29, 2020 | VOX
Chicago Booth routinely polls a panel of distinguished economists for their views on policy issues, and found near-universal assent to the notion that prematurely ending lockdown measures would ultimately be more economically costly than allowing them to proceed.
There’s still time to contain the financial crisis, says a former central
March 27, 2020 | Barron’s
Raghuram Rajan, an economist who sounded a warning ahead of the 2008 financial crisis, says the U.S. isn’t in a full-blown financial crisis yet, and could avoid a repeat of what happened 12 years ago by moving decisively to contain the coronavirus and the economic fallout.
Here’s how much it could cost if we stop social distancing
March 27, 2020 | Forbes
While President Trump floated the idea of easing up on social distancing, economists from the University of Chicago’s Becker Friedman Institute found that moderate social distancing measures could save 1.7 million lives and at least $7.9 trillion. Booth professor Austan Goolsbee said, “Anything that slows the rate of the virus is the best thing you can do for the economy.”
Former federal economist looks at economic rescue package moving through congress
March 26, 2020 | NPR All Things Considered
NPR’s Ari Shapiro talks with Austan Goolsbee, former chair of the Council of Economic Advisers and professor at Chicago Booth, about the economic relief package moving through Congress.
Two former CEA chairmen on record-breaking jobless claims amid COVID-19 pandemic
March 26, 2020 | CNBC Squawk Box
Glenn Hubbard and Chicago Booth professor Austan Goolsbee, both former chairmen of the Council of Economic Advisers, join “Squawk Box” to discuss the historic weekly jobless claims that correspond with the beginning of the U.S. response to the coronavirus outbreak.
What makes this global dollar crunch different?
March 26, 2020 | Financial Times
An associate professor of finance at the University of Chicago Booth School of Business, Wenxin Du explains how regulatory banking reforms and the growth of non-banks have made a global dollar shortage even more difficult to address now than in 2008.
Former presidential economist on $2T coronavirus bill: There’s not much stimulus
March 25, 2020 | Yahoo! Finance
Austan Goolsbee, Chicago Booth professor of economics and former Council of Economic Advisors chairman under President Obama, joins Yahoo Finance’s Seana Smith to discuss the $2 trillion coronavirus stimulus deal facing a vote in the Senate.
Can India’s economy weather the COVID-19 crisis?
March 25, 2020 | BBC World Business Report
As India enters lockdown, is $20 billion enough to get it through the COVID-19 crisis? Raghuram Rajan, Chicago Booth professor and former governor of the Reserve Bank of India, joins the BBC to discuss.
Obama’s former economic advisor says Trump is ignoring the most important rule of virus economics—and warns the usual
recession playbook is futile against COVID-19
March 25, 2020 | Business Insider
Austan Goolsbee, professor at Chicago Booth and former economic advisor to President Obama, says “the number one rule of virus economics is that you have to stop the virus before you can do anything about economics.”
G-20 seems ‘somewhat paralyzed’ to help on coronavirus: Rajan
March 25, 2020 | Bloomberg Surveillance
Raghuram Rajan, finance professor at the University of Chicago Booth School of Business and former governor of the Reserve Bank of India, discusses the need to help poorer nations and emerging economies combat the coronavirus pandemic.
Expect more virus cases, Rasmussen says
March 24, 2020 | Bloomberg Surveillance
On the Bloomberg Surveillance podcast, Randall Kroszner, professor at Chicago Booth and former Federal Reserve board member, says the Fed’s actions have been crucial in avoiding a financial crisis so far.
To fight the coronavirus, cut the red tape
March 24, 2020 | The New York Times
Chicago Booth economists Sendhil Mullainathan and Richard H. Thaler suggest suspending five types of regulations that are slowing the medical response to the pandemic, including medical licensing that prevents qualified professionals from practicing outside their state.
Markets will be volatile until measures to contain COVID-19 prove effective:
March 23, 2020 | BNN Bloomberg
Raghuram Rajan, former governor of the Reserve Bank of India, former chief economist at IMF, and current professor at the University of Chicago Booth School of Business, joins BNN Bloomberg to discuss the major U.S. Fed plans to support the economy amid COVID-19.
Guidance for startups/VCs from VCs around the globe during COVID-19
March 23, 2020 | Forbes
As the impact of COVID-19 rapidly unfolds, tech companies are seeking insight into their financial futures. Ira Weiss, a professor at Chicago Booth and cofounder of Hyde Park Venture Partners, says that while investors often go inward during a bad downturn, “you also have opportunities to get involved in companies you’ve always wanted to be involved in financially.”
Trump says he intends to reopen country in weeks, not months
March 23, 2020 | Associated Press
Tensions have been rising between those who argue the country needs to get back up and running and medical experts who warn that the human cost will be catastrophic. Austan Goolsbee, an economist at the University of Chicago, has repeatedly emphasized that halting the outbreak is needed so that growth can resume.
The U.S. shut down its economy. Here’s what needs to happen in order to restart.
March 22, 2020 | The New York Times
Joseph S. Vavra, an economist at the University of Chicago Booth School of Business, said that policymakers typically try to stimulate consumer demand during a recession and start recovery as quickly as possible. Right now, the goal is almost the opposite.
Opinion: Coronavirus bailouts are coming: Here’s the smart way to help businesses and
March 21, 2020 | MarketWatch
Chicago Booth professor Luigi Zingales says the U.S. economy is likely to experience the largest contraction since the Great Depression. He shares measures the government can take to mitigate the coronavirus’s impact on the economy.
Rich countries cannot win the war against coronavirus alone
March 20, 2020 | Financial Times
“Policymakers everywhere now understand no country is immune from coronavirus,” writes Raghuram Rajan, professor of finance at Chicago Booth. He asserts that the response finally corresponds to the size of the challenge as industrial countries work to contain the virus’ spread while limiting the disruption to households and businesses.
Transit systems will feel lingering effects of coronavirus
March 20, 2020 | Crain’s Chicago Business
The coronavirus has dealt a heavy blow to public transit systems. What if some workers continue to work remotely after the crisis ends? “Working from home used to be something many were frowning upon because they worried it would be abused,” says Michael Gibbs, a professor at Chicago Booth. “Some places will adopt it; some won’t.”
The economy can be saved without making inequality worse. Here’s how.
March 20, 2020 | Barron’s
The impending recession caused by the coronavirus will hit some households and firms harder than others. According to Chicago Booth professor Joseph Vavra, the most effective stimulus policies should focus on getting cash and liquidity to those most in need.
How other countries reacted to coronavirus will impact America eventually: Former head of India’s central bank
March 20, 2020 | Fox Business
Raghuram Rajan, the former head of India’s central bank and a professor of finance at Chicago Booth, discusses how the U.S. can avert a global financial and economic crisis in the face of the coronavirus outbreak.
Combatting coronavirus: Car factories suspend operations
March 20, 2020 | Al Jazeera English
Across the United States, Mexico and Canada, car companies are temporarily suspending their operations to help stop the spread of the coronavirus pandemic. Chicago Booth professor Pradeep Chintagunta joins Al Jazeera’s John Hendren to discuss.
Three pillars of the economic policy response to the COVID-19 crisis
March 19, 2020 | Chicago Booth Review
Governments around the world are deploying policies to deal with the crisis created by COVID-19. Chicago Booth professors Eric Budish, Anil K. Kashyap, Ralph S.J. Koijen, and Brent Neiman share why many normal macroeconomic policies don’t apply in the current situation.
We all need small businesses. Don’t let them die.
March 19, 2020 | The New York Times
The economy relies on thousands of local operations that need urgent help even more than big companies do, according to Chicago Booth professor Sendhil Mullainathan. While some harm has already been done, he says we can still prevent much of the long-lasting damage from the coronavirus.
U.S. needs to ‘consider carefully’ which companies deserve bailouts in stimulus package
March 18, 2020 | CNBC (Squawk Box Asia)
In addition to helping tide companies over during the coronavirus outbreak, U.S. stimulus measures should provide direct cash transfers to distressed households, says Raghuram Rajan, a professor at Chicago Booth and former governor of the Reserve Bank of India.
Fed to launch commercial paper funding facility
March 17, 2020 | Yahoo! Finance
The Federal Reserve announced it’s repeating a financial crisis policy that will create a commercial paper funding facility to support the flow of credit to households and businesses. Randall Kroszner, deputy dean and professor of economics at Chicago Booth, discusses this move on The Ticker.
Checks to Americans will ease the coronavirus slump, but it may not be much
of an economic stimulus
March 17, 2020 | Los Angeles Times
President Trump’s proposal to send checks to Americans seems like it could be effective, suggests Randall Kroszner, a former Federal Reserve governor and a professor at Chicago Booth. But, he said, “if such a program is done, it has to get the money out super quickly. That is the key thing for people who are strained and have few assets.”
‘More severe than the Great Recession’
March 17, 2020 | The New York Times
Economic activity will be severely constrained until the virus is under control and people no longer fear for their lives, suggests Austan Goolsbee, a University of Chicago economist who worked in the Obama administration. “Anything that slows the rate of the virus is the best thing you can do for the economy, even if by conventional measures it’s bad for the economy,” he said.
COVID-19: Raghuram Rajan on need for expertise, Mahesh Vyas on job losses
March 17, 2020 | The Print
Raghuram Rajan, professor of finance at Chicago Booth, points out that if there is a “silver lining” to the coronavirus pandemic, “it is the possibility of a much-needed reset in public dialogue that focuses attention on the most vulnerable in society, on the need for global cooperation, and on the importance of professional leadership and expertise.”
Another big market collapse heightens fears of global recession
March 16, 2020 | Foreign Policy Magazine
Global markets collapsed again on Monday, despite the U.S. Federal Reserve’s dramatic weekend rate cut. “Whenever you’re in a crisis, I think stimulus can’t work until you tone down the public panic about the virus,” said economist Austan Goolsbee of Chicago Booth.
Raghuram Rajan: Virus’s shock to production will expose the hidden poor
March 16, 2020 | Irish Examiner
The COVID-19 outbreak has reasserted our need for expertise and for leadership that protects the most vulnerable in society, says Raghuram Rajan, former governor of the Reserve Bank of India and a professor of finance at the University of Chicago Booth School of Business.
Stocks in free fall amid coronavirus panic selling
March 16, 2020 | WTTW
U.S. stocks plunged nearly 13% Monday as fears over the potential health and economic impacts of the coronavirus drove panic selling. Steven Kaplan, a professor of entrepreneurship and finance at Chicago Booth, said the Fed has little ability to boost economic activity at the moment, but it can keep the financial system solvent and credit available.
Global recession already here, say top economists
March 15, 2020 | Financial Times
The world economy has fallen into a recession as a result of the coronavirus and the dramatic action to limit its spread, according to former IMF chief economists. Chicago Booth professor Raghuram Rajan said the depth of any economic hit would depend on the authorities’ success in containing the pandemic.
Fed still has room to do more, says former governor
March 15, 2020 | CNBC
While the Fed’s emergency moves will help narrow spreads in mortgage-backed securities, former Fed governor and Chicago Booth professor Randy Kroszner says the U.S. central bank could still revive some of its crisis-era programs specific to the commercial paper market.
Why is the stock market slipping?
March 09, 2020 | TheStreet
The panic over the Dow Jones’ slumping numbers has everyone on edge. “Volatility means movement,” said Lubos Pastor, a professor with the University of Chicago’s Booth School of Business. “It does not mean movement up, or movement down. It means movement in both directions, and I think the last three or four days are a perfect example of that.”
Fmr. Obama economist: Trump’s coronavirus payroll tax cut not the answer
March 09, 2020 | MSNBC
Austan Goolsbee, an economics professor at the University of Chicago and former chairman of the Council of Economic Advisers for President Obama, explains why President Trump’s proposal for a payroll tax cut will not help counter economic damage from the coronavirus.
‘Extremely important’ the Fed does what markets want: Randall Kroszner
March 09, 2020 | CNBC
Randall Kroszner of the University of Chicago Booth School of Business joins “The Exchange” to discuss what the Fed needs to do to help the U.S. economy.
Why the coronavirus could threaten the U.S. economy even more than China’s
March 06, 2020 | The New York Times
Austan Goolsbee, a professor of economics at the University of Chicago’s Booth School of Business, uses empirical evidence to suggest the coronavirus could have more damaging repercussions on the U.S. than China.
He didn’t get the Disney CEO job, but Kevin Mayer
still holds keys to the kingdom
March 06, 2020 | Los Angeles Times
Steven Kaplan, a professor and corporate governance expert at the University of Chicago’s Booth School of Business, weighs in on Walt Disney Co.’s surprise appointment of Bob Chapek as chief executive. “Chapek is very good on the execution side,” says Kaplan. “He makes decisions and gets things done.”
Fed trying to be proactive in fighting slowdown: Former Fed governor
March 03, 2020 | CNBC
Randall Kroszner, former governor of the Federal Reserve and deputy dean at the University of Chicago Booth School of Business, joins “Squawk on the Street” to discuss the surprise interest rate cut announced by the Federal Reserve.
The populism puzzle
March 02, 2020 | Chicago Booth Review
Chicago Booth’s Lubos Pastor and Pietro Veronesi are among the researchers studying the implications of both the U.K. and U.S.’s embrace of populism and shunning of globalization. “As economists, we have been taught to think that globalization is good, because people get to specialize, and you have free trade, and that’s a way of making somebody better off without making anybody worse off,” says Pastor.
University of Chicago receives $3.5 million for professorship
February 29, 2020 | Philanthropy News Digest
The University of Chicago Booth School of Business has announced a $3.5 million gift from alumnus Frank Diassi, ’60, and his late wife, Marianne, to fund the Frank P. and Marianne R. Diassi Distinguished Service Professorship.
Rajan says fight the virus first
February 27, 2020 | Bloomberg
Booth professor Raghuram Rajan says the best economic tonic for the coronavirus shock is to contain its spread and worry about stimulus later.
Thomas Piketty’s ‘Capital and Ideology’: scholarship without solutions
February 24, 2020 | Financial Times
The sequel to Thomas Piketty’s 2013 book "Capital in the Twenty-First Century" concludes that "inequality is a real problem today, but it is the inequality of opportunity, of access to capabilities, of place, not just of incomes and wealth," according to Raghuram Rajan, a former governor of the Reserve Bank of India and professor at Chicago Booth.
Douglas Todd: The puzzle of the high-end gender pay gap
February 24, 2020 | Vancouver Sun
In a January speech, University of Chicago economist Marianne Bertrand said the birth of a first child has essentially no effect on a man’s earning trajectory and that decisions made around motherhood make up the largest contributor to the gender gap, especially among educated women in the highest-earning categories.
Is it worth timing commitments to private equity?
February 21, 2020 | Institutional Investor
A working paper from the National Bureau of Economic Research, co-authored by the University of Chicago's Steven Kaplan, finds that private equity performance tends to drop after periods of strong fundraising.
All-star economists urge Fed to use QE and ‘new
tools’ to fight next recession — just move sooner and go bigger than crisis
February 21, 2020 | MarketWatch
A new paper co-authored by academics Anil Kashyap of the University of Chicago Booth School of Business, Stephen Cecchetti of Brandeis International Business School, and Kermit Schoenholtz of the NYU Stern School of Business and by private-sector economists Michael Feroli of J.P. Morgan Chase and Catherine Mann of Citigroup reveals that the Federal Reserve should use the same tools to fight the next recession that they developed during the financial crisis.
Cash sloshes around the world in unexpected ways
February 20, 2020 | The Economist
A recent study by Brent Neiman of the University of Chicago, Antonio Coppola of Harvard University, Matteo Maggiori of Stanford University, and Jesse Schreger of Columbia University tries to determine the dramatic rise in the share of cross-border investments flowing through tax havens between 2007 and 2017.
Forget retirement. 39% of workers want help with student loans
February 20, 2020 | Ignites
Loss aversion may explain why more survey respondents said they want employers’ help with their student loans rather than with saving for retirement, says Ayelet Fishbach, professor of behavioral science and marketing at the University of Chicago Booth School of Business.
When humanizing a logo can go wrong
February 14, 2020 | Crain's Chicago Business
Ann McGill, a professor of general management, marketing and behavioral science at the University of Chicago’s Booth School of Business, provides an important lesson on what makes for a powerful logo and when it has the potential to all go wrong.
'Bloomberg big decisions' - Richard Thaler
February 05, 2020 | Bloomberg
On this episode of Bloomberg Big Decisions, David Westin sits down with Dr. Richard Thaler, renowned behavioral economics professor and 2017 Nobel Laureate. He discusses his early influences, what led him down the path of behavioral economics, how he uses that lens to explain why people make the decisions they do, and how it can help steer investment decisions.
Never mind the internet. Here’s what’s killing malls.
February 14, 2020 | The New York Times
Austan Goolsbee, a professor of economics at the University of Chicagoʼs Booth School of Business, says that big-box stores, income inequality and services-instead-of-things are largely to blame for killing malls.
How much should health data cost? $100K or more, according to patients
February 12, 2020 | Becker's Health IT
The annual Financial Trust Index Survey, conducted in December by the University of Chicago Booth School of Business and Northwestern University's Kellogg School of Management, reveals that 90% of Americans would refuse to share their health data with digital platforms for free.
The biggest challenges facing Chicago over the next decade
February 11, 2020 | InsideHook
Christina Hachikian, executive director of the Rustandy Center for Social Sector Innovation at the University of Chicago Booth School of Business, sees equality in wealth building as one of the biggest challenges facing the Windy City over the next decade.
The perils of “survivorship bias”
February 11, 2020 | Scientific American
Sendhil Mullainathan, a professor of computation and behavioral science at the University of Chicago Booth School of Business, helps clue us in on what "survivorship bias" is.
New credit-loss standard could benefit lenders if regulators loosen capital
requirements, study says
February 11, 2020 | Wall Street Journal
Looser capital requirements would spur lenders to provide more loans, strengthening their bottom line and aiding the economy, said Haresh Sapra, an accounting professor at the University of Chicago, in a story about a new accounting standard on credit losses.
Pioneers of value investing are trying to see if it’s dead
February 06, 2020 | Bloomberg
The University of Chicago’s Eugene Fama examines the evolution of value investing over the last 60 years. He determines that “the initial tests confirm that realized value premiums fall from the first half of the sample to the second, but inferences from average premiums are clouded by the high volatility of monthly premiums.”
Big business is driving America’s smaller cities
February 05, 2020 | Wall Street Journal
The industrial revolution in services has allowed the most productive firms in an industry to out grow their competitors and claim large shares of the national market, according to Chang-Tai Hsieh, an economics professor at the University of Chicago's Booth School of Business.
Booth's Brent Neiman honored with 2020 Central Banking Award for work on the Global Capital
February 05, 2020 | Central Banking
Chicago Booth professor Brent Neiman, along with Matteo Maggiori and Jesse Schreger, was recognized with the Economics in Central Banking award for work that has helped pick apart the tangled network of cross-border capital flows and may prove essential to those looking to shore up the international monetary system.
FCA researchers outline $5 billion ‘tax’ imposed by high-speed trading
January 27, 2020 | Financial Times
A new paper written by Chicago Booth's Eric Budish and Matteo Aquilina and Peter O’Neill of the UK’s Financial Conduct Authority homes in on tactic known as latency arbitrage.
Chinese economy likely to take short-term hit due to coronavirus: Professor
January 27, 2020 | CNBC
China’s mostly “inward-directed” economy is likely to take a hit in the short term from reduced tourism and travel due to the coronavirus outbreak. The long-term impact is probably “negligible” if the virus can be contained, says Austan Goolsbee, an economics professor from Chicago Booth.
Commentary: Can best picture Oscar nominee ‘The Irishman’ make money for
Netflix? It’s complicated.
January 17, 2020 | Chicago Tribune
The debate rages about how and if the Oscar-nominated "The Irishman" can earn money for Netflix and, if so, how much. Pradeep Chintagunta, marketing professor at the University of Chicago Booth School of Business, plays a bit of devil's advocate.
Let your customers tell you when to pivot
January 17, 2020 | Crain's Chicago Business
Despite knowing that businesses need to stay ahead of the curve in order to stay relevant, many are reluctant to do so, according to Pradeep Chintagunta, the Joseph T. and Bernice S. Lewis Distinguished Service Professor of Marketing at the University of Chicago’s Booth School of Business
Austan Goolsbee on China trade: I don't think we're in a better place
January 16, 2020 | Fox Business Network
Former Council of Economic Advisers chair and Robert P. Gwinn Professor of Economics at the University of Chicago's Booth School of Business Austan Goolsbee provides insight into the efficiency of phase one of the US-China trade deal and the USMCA.
Boeing's future dominance in question after 737 Max crashes, new CEO
January 16, 2020 | NPR
Steve Kaplan at the University of Chicago's Booth School of Business debates the future of Boeing with NPR host Mary Louise Kelly in the aftermath of the Boeing 737 plane crash and introduction of a new CEO.
Fed is haunted by example of Japan, Kroszner says
January 14, 2020 | Bloomberg TV
Randall Kroszner, a former Federal Reserve governor and now deputy dean for executive programs at the University of Chicago Booth School of Business, talks about the trade negotiations between the world's two largest economies, the outlook for U.S. growth and monetary policy. He speaks with Yvonne Man and Haslinda Amin on "Bloomberg Markets: Asia."
Economists fear US is approaching limit of monetary policy
January 07, 2020 | Financial Times
Former Fed chairs fear that should an economic downturn occur, the Fed may not be able to handle it alone. Raghuram Rajan, former governor of the Reserve Bank of India, now at the University of Chicago Booth School of Business, says "they can't announce too loudly they have no tools left."
Everything you need to know about stock buybacks
January 07, 2020 | Investor Place
Eugene Fama, professor of finance at Chicago Booth, says buybacks shouldn't be a source of worry in an article focusing on the history of stock buybacks and what it means for present day.
New Year’s resolution: Be more honest
January 01, 2020 | The New York Times
Honesty is the best policy as a New Year's resolution, with Emma Levine, an assistant professor of behavioral science at the University of Chicago Booth School of Business, revealing that understanding the intentions of the deceiver often informs how we regard the deception.
Is this the secret to getting teens to reject junk
January 01, 2020 | The Washington Post
Christopher J. Bryan, an assistant professor of behavioral science at the University of Chicago Booth School of Business, addresses researchers’ concern that current school-based nutrition education for teens is less focused on media literacy and more on making better food choices for future long-term health.
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