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 crisis
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 recession
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 economy’
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 cases surge
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 governor
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 count
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 recovery
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 economy
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.
Monetisation Neither A Game Changer Nor A Catastrophe, Says Raghuram Rajan
May 08, 2020 | BloombergQuint
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 like
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 coronavirus
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 on?
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 banker
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: Economist Rajan
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 workers
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 Allocation Project
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 food?
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.