In the News 2020

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.