Tributes Pour in for Lord Meghnad Desai, Renowned Economist and Politician
Lord Meghnad Desai, a distinguished economist known for his profound impact on economic theories and policies, has died at the age of 85. He was an influential member of the House of Lords and served as a professor at the London School of Economics (LSE), where he was regarded as a trailblazer in economic discourse. Desai's academic career was marked by a dedication to exploring the intricacies of economic policy, development, and global financial systems. His work extended beyond academia, making significant contributions to public policy that resonated in a variety of national and international contexts. He was particularly noted for his critiques of economic structures and advocates for more inclusive approaches to economic governance. In the wake of his passing, many from various sectors of the political and academic community have expressed condolences, highlighting his unique ability to bridge the gap between rigorous economic theory and practical application. His insights often challenged conventional wisdom, encouraging innovative approaches to tackling economic challenges. Desai also made history as one of the first Indian-born members of the House of Lords, which underscored his commitment to fostering a greater understanding of economic issues from a diverse perspective. The legacy of Lord Meghnad Desai will continue through his vast body of work, inspiring future generations of economists, policymakers, and scholars. The LSE reported the many tributes to Lord Desai, celebrating not just his economic brilliance but also his engaging personality and vast intellect that enriched conversations on crucial economic issues in the modern world. Image Credits: blogs.lse.ac.uk
Lord Meghnad Desai, a celebrated economist and member of the House of Lords, has passed away at the age of 85. His contributions to economic thought and public policy were instrumental in shaping modern economics.
Economic Development, Innovation and Growth (JEL O)
Portugal Nominates Alvaro Santos Pereira as New Central Bank Governor
LISBON (Reuters) - The Portuguese government has nominated Alvaro Santos Pereira, the current chief economist at the Organisation for Economic Cooperation and Development (OECD), to become the next governor of the central bank. His nomination comes following the end of Mario Centeno’s term, which officially concluded on July 19. The announcement was made by Cabinet Minister Antonio Leitao Amaro during a weekly cabinet meeting. The central bank governor's role is critical and comes with a five-year term, with the possibility of reappointment. Prior to officially taking office, Pereira will need to face questioning from a parliamentary committee; however, this committee holds no power to veto his nomination. It's common in Portugal for heads of regulatory bodies to continue in their positions for months after their official terms have ended, a scenario that occurred with Centeno as well, who had expressed his willingness to remain in the role. This nomination highlights the importance of leadership within Portugal's financial landscape, especially as economic conditions evolve. The appointment is now set to undergo the next steps in the approval process, continuing to attract attention within both political and economic spheres. Credits: Banco de Portugal / REUTERS/Pedro Nunes
The Portuguese government has announced the nomination of Alvaro Santos Pereira as the next governor of the central bank, succeeding Mario Centeno, whose term ended in July. Pereira, chief economist at the OECD, must undergo parliamentary questioning before his appointment. Centeno's tenure faced criticism for perceived lack of independence after transitioning from finance minister to central bank governor.
Professor Jagjit Chadha Appointed Fellow of Gresham College
In a press release, the University of Cambridge has announced that Professor Jagjit S. Chadha, a distinguished academic at the Faculty of Economics at the University, has been appointed a Fellow of Gresham College, an esteemed institution known for its public lectures since 1597. Chadha, who previously held the title of Mercers' Memorial Professor of Commerce at Gresham College from 2014 to 2018, expressed his honor in continuing his collaboration with the college which aims to promote public knowledge in the arts and sciences. In his tenure at Gresham, he delivered 24 lectures focused on enhancing public understanding of economics and economic policy. "I am honoured and delighted to be recognised by Gresham College in this way. My 24 lectures were designed to support public understanding of economics and economic policy but I think I learned the most from their delivery," stated Professor Chadha. He will now be in a position where he can also make contributions to the college's Academic Board. In addition to his new role, Professor Chadha has also been appointed a Visiting Professor at Birkbeck, part of the University of London, where he will be engaged with the Economics Group for the next three years. Plans are in discussions about introducing an Annual State of Economic Address. Chadha has an illustrious academic background, having served as Director of the National Institute of Economic and Social Research until December 2024, and has previously held positions at the University of Kent and the University of St Andrews. His contributions to the field have been recognized with an OBE in the 2021 Queen's Birthday Honours, and he was elected a Founding Fellow of the Royal Economic Society in 2025. This appointment highlights Professor Chadha's ongoing commitment to economic discourse and public education in the field. Image Credits: econ.cam.ac.uk / gresham.ac.uk
Professor Jagjit Chadha from the Faculty of Economics at Cambridge has been appointed a Fellow of Gresham College.
EABCN Takes Over ECB's Area Wide Model (AWM) Database
The Euro Area Business Cycle Network (EABCN) has officially assumed control over the Euro Area Business Cycle Dating Committee's (EABCDC) Area Wide Model (AWM) database, which was decommissioned by the European Central Bank (ECB) in 2010. The AWM database, instrumental for empirical work on the euro area, has not been updated since 2019. It is hoped that the EABCN's involvement will rejuvenate this important resource, allowing for regular updates twice a year in conjunction with EABCDC meetings. The AWM database provides a foundational source for analyzing the euro area’s economic fluctuations and is significant for output gap estimations among other economic indicators. The recent transition of data management to EABCN may come as a relief for both both academic researchers and policy institutions focused on the euro area's economic stability who benefit from reliable data about business cycles within the Eurozone. Image Credits: Peter Hermus / Getty Images, via Canva Teams
The Euro Area Business Cycle Network (EABCN) has taken responsibility for updating the Euro Area Business Cycle Dating Committee’s (EABCDC) Area Wide Model (AWM) database, originally managed by the ECB. This move aims to enhance the availability of the data for research on the euro area business cycle, with plans for updates twice yearly.
Macroeconomics and Monetary Economics (JEL E)
Econometrics, Statistics and Quantitative Methods (JEL C)
IMF Appoints Rodrigo Valdes as Director Fiscal Affairs Department
In a significant leadership change, the International Monetary Fund (IMF) has announced the appointment of Rodrigo Valdes, originally from Chile, as the new Director of the Fiscal Affairs Department. This decision was made public on July 17, 2025, indicating a commitment to enhancing fiscal policies worldwide. Valdes steps into this role following the departure of Vicky Sterlini, who has served the department with distinction and is now retiring after a notable tenure. Rodrigo Valdes comes to this position with a wealth of experience in economic policy and fiscal management, having served in various capacities within government and international organizations. His extensive background includes leadership roles that influence fiscal policy development, economic reforms, and sustainable growth initiatives. IMF Managing Director Kristalina Georgieva expressed confidence in Valdes’s abilities, stating: “I am pleased to announce that Rodrigo Valdés will assume the role of Director of the Fiscal Affairs Department. I am also delighted that this appointment represents the first time in FAD’s 60-year history that an Emerging Market economist will lead the department.” Valdes's expertise is expected to drive forward the department's objectives, ensuring that governments are better equipped to manage their fiscal challenges, especially in the wake of global economic shifts. The Fiscal Affairs Department is central to the IMF's work, focusing on advising countries on best practices for fiscal policy, budgeting, and tax reforms. Image Credits: imf.org
The International Monetary Fund (IMF) has appointed Rodrigo Valdes as the new Director of the Fiscal Affairs Department, effective immediately. Valdes, who succeeds the retiring Vicky Sterlini, brings extensive experience in economic policy and fiscal management.
Public Economics & Economic Policy (JEL H)
Banco de España Announces New Appointments
The Banco de España has announced (in Spanish) two key appointments. David López Salido has been appointed as the new Director General of Economy. He moves to his new role in Madrid from the US Federal Reserve in Washington D.C., where he held the position of Senior Associate Director for Monetary Affairs. Salido's extensive background in economic analysis and policy-making positions him as a pivotal figure in shaping the economic strategies of the Banco. Alongside him, Galo Nuño has been designated as the Director General of Institutional, European and Transparency Relations. Nuño moves from his position as Associate Director General Economics at the bank. His experience in institutional relations emphasizes Banco de España's commitment to transparency and fostering strong ties with various stakeholders in the European financial landscape. These appointments come at a crucial time as the Banco continues to navigate the complexities of economic recovery and financial stability in the current global context. Both López Salido and Nuño expressed their readiness to tackle the challenges ahead and to work collaboratively with their teams to enhance the effectiveness of Banco de España's initiatives. The institution aims to strengthen its role in ensuring a sound monetary policy and contributing positively to Spain's financial ecosystem, reinforcing confidence and stability amidst ongoing changes in the economic environment. The new roles reflect the Banco’s priorities in addressing economic concerns and fostering cooperation between institutions in Europe, which are imperative for its ongoing mission to promote financial stability and economic growth in Spain. Image Credits: bde.es
David López Salido has been appointed as the Director General of Economy at Spain's national bank, while Galo Nuño will take on the role of Director General of Institutional, European and Transparency Relations at Banco de España.
Dr. Dominik Steinkühler Appointed New Head of Group Development and Economics at KfW
In a recent announcement, KfW revealed that Dr. Dominik Steinkühler will take on the role of Head of Group Development and Economics beginning September 1, 2025. Dr. Steinkühler, 44, will inherit responsibilities that encompass corporate strategy, sustainability, strategic planning, and management as well as overseeing the innovation and economics research departments at KfW. Dr. Steinkühler's prior experience includes being a partner at the growth capital firm Vorwerk Ventures, where he founded the Climate Investment department. His impressive credentials also include having served as Managing Director and CFO at Friday Insurance and an executive board member at Commerzbank. Additionally, he has a PhD in business administration from RWTH Aachen University and studied at WHU – Otto Beisheim School of Management. Stefan Wintels, CEO of KfW, expressed confidence in Dr. Steinkühler's extensive banking expertise and stakeholder experience, emphasizing the necessity for KfW to mobilize private capital effectively to strengthen Germany's economic position. Wintels stated, "I am delighted to welcome Dr. Dominik Steinkühler, an experienced strategy expert, to KfW." This leadership transition follows Dr. Susanne Maurenbrecher's promotion to General Manager of KfW, effective October 1, expanding her contributions to the organization. Image Credits: kfw.de / vorwerkventures.com
Dr. Dominik Steinkühler has been appointed as the new Head of Group Development and Economics at KfW, effective September 1, 2025. He succeeds Dr. Susanne Maurenbrecher, who will become General Manager in October.
Mark Calabria Appointed as Chief Statistician of the U.S.
In a significant move for the U.S. government's statistical operations, the White House Office of Management and Budget appointed Mark Calabria as the chief statistician of the United States. Calabria, who also serves as a senior economist and has previous roles within the Trump administration, takes over from Karin Orvis, who held the position since 2022. In his new role, Calabria will chair the Interagency Council on Statistical Policy. The chief statistician role is vital in managing and coordinating the decentralized system of federal statistical agencies, including the Census Bureau and the Bureau of Labor Statistics. It primarily involves setting statistical standards, overseeing policy, and ensuring the effective dissemination of important data. Calabria expressed his eagerness to take on these additional responsibilities in his recent post. Calabria's background includes serving as a senior adviser at the Cato Institute and as the chief economist to former Vice President Mike Pence. He holds a PhD in economics from George Mason University, positioning him well to take on the hefty tasks that come with overseeing the federal statistical landscape. Image Credits: x.com / statspolicy.gov
Mark Calabria has been appointed as the chief statistician by the White House, succeeding Karin Orvis. The move was announced by Calabria himself via X, and reported by Washington news outlet FedScoop.
Teresa Garcia-Milà Assumes Presidency of Cercle d’Economia
In a notable advancement of her esteemed career, Teresa Garcia-Milà has been elected as the President of Cercle d’Economia, a leading economic institution in Spain. Known for her significant contributions to the economic sector, Garcia-Milà's election underscores her influence in shaping economic policy and thought in Europe. She will hold the position for three years, until 2028. Cercle d’Economia is a prominent think tank that facilitates dialogue on critical economic and social issues, involving leaders from various sectors, and her appointment is expected to bring forward a blend of innovation and tradition to its leadership. Garcia-Milà's role is expected to enhance the organization's influence further in the economic discourse in Spain and beyond. Garcia-Milà's election coincides with her inclusion in Forbes' Top 100 list of most influential women in Catalonia, a testament to her leadership capabilities and her impactful contributions to the field. The recognition by Forbes underscores her role as a significant figure among economic leaders globally, demonstrating her leadership in economic governance and policy-making. Her roles so far and her involvement in various economic forums, have been instrumental in her journey to this prestigious position. Having obtained her PhD at the University of Minnesota, Garcia-Milà now holds positions as General Director of the Barcelona School of Economics (BSE), a Professor at Universitat Pompeu Fabra (UPF), and an Associate Researcher at the Center for Research in International Economics (CREI). She will combine these with her new role as President of Cercle D'Economia. Her presidency aligns with ongoing efforts to foster economic dialogue and development, particularly at a time when economic resilience is crucial globally. Garcia-Milà’s new role promises to foster enhanced collaboration across sectors, bringing innovative solutions to the forefront of economic challenges and opportunities. Image Credits: bse.eu
Teresa Garcia-Milà, a prominent figure in the economic sector, has been elected as the new President of Cercle d’Economia, marking a significant milestone in her career. The news was announced by Barcelona School of Economics, which she leads as General Director. Her leadership and contributions in the economic field also earned her a spot on Forbes' prestigious Top 100 list of most influential women in Catalonia.
Urban, Rural and Transportation Economics (JEL R)
Agricultural and Environmental Economics (JEL Q)
Winners Announced for the 21st Korea Times Economic Essay Contest
Rosskopf, a student at the University of Göttingen currently participating in an exchange program at Seoul National University, was recognised for her essay "Where did the bank go? Rebuilding spatial memory in digital finance". Lee, a student at Hanyang University, won for his essay "Face over Interface: How smarter branches can reconnect with ging customers". The contest, which is an opportunity for budding economists to share innovative perspectives, drew numerous submissions from across the globe. Dorothea Rosskopf and Lee Jae-hyeong's essays stood out for their originality, depth, and potential impact on real-world economic scenarios. Judging criteria included the clarity of the argument, the robustness of the analysis, and the feasibility of the proposed solutions. This annual event serves as a platform for young economists to gain recognition and contribute to the ongoing discourse in the field of economics. The competition's primary objective is to encourage critical thinking and the exploration of new economic thought approaches among entrants. Winners were awarded prizes worth 3 million won ($2,202) and had the opportunity to present their ideas to a panel of seasoned economists and academics, providing them with valuable feedback and further insights into their chosen topics. Three other students from Ghana, Korea and Sweden, all studying in Korea, received a commendation and a 1 million won prize. A ceremony on June 17, 2025 celebrated their achievement, showcasing how both individuals explored critical economic issues. The essays will be published in leading academic journals, as well as in the Korea Times, offering Rosskopf and Lee an important springboard as influential young voices in the world of modern economics. Image Credits: koreatimes.co.kr / essaycontest.koreatimes.co.kr
Dorothea Rosskopf and Lee Jae-hyeong have been announced as winners in the Korea Times' 21st Economic Essay Contest, showcasing exemplary work in the field of economics.
Our MSc in Economics will provide you with rigorous training in the three main strands of economics: microeconomics macroeconomics econometrics Alongside these core topics, you will be able to explore specialist areas to enhance your skills around your interests and career aspirations. These include: macroeconomic or public policy economics banking investment decision-making environmental and behavioural economics machine learning methods in economics Dissertation or Consultancy Project The course culminates with either a traditional dissertation or a consultancy project. Dissertation You can choose to do a dissertation on an economic area that interests you or that is most useful in your career. This will allow you to apply your newly acquired knowledge to a specific problem or debate. Consultancy Project The consultancy project is an alternative to the dissertation. You’ll work on a consultancy or research-based project with an external organisation, helping them to address a real-world business challenge. You’ll conduct appropriate research and data analysis (if necessary), before presenting your findings as a written report and presentation. Consultancy project numbers are limited each year. You’ll apply for a suitable project with one of our external partners and will receive support from us during this process. If a suitable project can’t be secured, you will complete a dissertation instead.<o:p></o:p> Find out more about the consultancy project<o:p></o:p> Use specialist facilities You’ll have access to some of the latest industry-standard statistical, mathematical and econometric software in our computer labs, including EViews, Stata, Matlab and Python. Access to top-tier international databases will allow you to access up-to-the-minute data on real-world trends to enhance your learning experience. Gain important career skills On successful completion of the course, you will be able to: analyse economic and financial data and critically evaluate existing research understand the key issues surrounding major economic debates and contribute to these apply economic concepts to specific economic and social policy questions formulate an original research question and write at an academic level We limit student numbers on this course to ensure a collegiate atmosphere and a high degree of interaction between students and lecturers. Graduate prospects This course is designed to equip you with the knowledge and abilities required to secure work as a professional economist in government, research units or commercial enterprises. It also provides suitable preparation for doctoral study and future careers in academia. Recent graduates have gone on to work in a number of different roles within economics across the world. These include: Principal Case Officer, Competition and Markets Authority (UK) Economic Advisor, Department for Education (UK) Chief Analyst, Enterprise Lithuania Senior Tax Consultant, KPMG (Kazakhstan) Investment Manager, private equity company (Czech Republic) Director, Regional Sector Research, Emirates NBD Global Markets and Treasury Department (United Arab Emirates) Others have chosen to continue their careers in academia. Compare all our economics master’s courses
Develop your understanding of the core tools and approaches needed to be a professional economist or to progress to doctoral study.
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Alena Wabitsch Wins the 2025 Young Economist Prize at ECB Forum
The award was given at the ECB Forum on Central Banking, an annual event that attracts top policymakers, academics, and market economists. This year, the forum was held between 30 June and 2 July in Sintra, Portugal, and focused on the theme "Adapting to Change: Macroeconomic Shifts and Policy Responses." Wabitsch's research paper, "The Messenger Matters" delves into how the messenger impacts the reach and influence of policy communication. Using big data and experimental models, she concluded that selecting the right messenger can maximize welfare, proving to be a powerful policy tool. Her entry included a poster and video summary: The Young Economist Prize is aimed at PhD students who submit papers on pressing economic themes relevant to the euro area. This year's topics included the macroeconomic implications of structural changes in the labour market, the prudential treatment of non-bank financial intermediaries, and the evolving architecture of international trade. Reacting to the news last month that two of its students were recognised at the Forum, including Wabitsch, the Department of Economics at the University of Oxford stated in a press release: "We’re delighted to share that two of our DPhil students, Alena Wabitsch and Lovisa Reiche, have been selected as finalists for the European Central Bank’s 2025 Young Economist Prize." Upon the announcement of Alena Wabitsch as the winner, the department added: "We are delighted to share that Alena Wabitsch has been announced as the winner of the 2025 ECB Young Economist Prize. Her paper, “The Messenger Matters”, was recognised for its innovation, rigour, and policy relevance at the ECB Forum on Central Banking in Sintra. Congratulations, Alena!" The full list of finalists consisted of: Alena Wabitsch (University of Oxford) for her paper "The Messenger Matters" Thomas Bourany (The University of Chicago) for his paper "The Optimal Design of Climate Agreements" Leonardo D’Amico (Harvard University) for his paper "Capital Market Integration Boosts US Growth" Friederike Fourné (Ludwig Maximilian University Munich and ifo Institute) for her paper "Micro identification of material shocks" Marko Irisarri (Universitat Pompeu Fabra Barcelona) for his paper "Entrepreneurship Across Cities: Uncovering Policy" Patrizia Massner (Stockholm University) for her paper "Should elder care be subsidized?" Lovisa Reiche (University of Oxford) for her paper "Exposure Matters When in Doubt" Giovanni Sciacovelli (Northwestern University) for his paper "Adjustable Mortgages & Monetary Policy" Jacob Sundram (University of Copenhagen) for his paper "Foreign Spillovers of Monetary Policy" Giovanni Trebbi (Tilburg University) for his paper "Inflation Narratives and Expectations" All participating finalists attended the forum from June 30 to July 2, 2025, where their research was assessed by a jury comprised of academics and ECB staff. In addition to a 10,000 euro award, Wabitsch and other finalists engaged in forum activities, including panel discussions and expert talks, fostering a dynamic exchange of ideas on economic challenges and policy solutions. Image Credits: ecb.europa.eu
The European Central Bank (ECB) has announced Alena Wabitsch from the University of Oxford as the winner of the 2025 Young Economist Prize.
Claudine Bouchard Named CEO of Hydro-Québec
Hydro-Québec's Board of Directors has officially appointed Claudine Bouchard as the new President and Chief Executive Officer, starting her tenure on July 5, 2025. Bouchard, a seasoned veteran at the company with over 25 years of experience and currently serving as Executive Vice President and Chief Operating and Infrastructure Officer, is well-recognized for her visionary leadership. She has played a pivotal role in developing the company's Action Plan 2035 and spearheaded initiatives that have significantly reduced service outages by 50% in 2024. During her career at Hydro-Québec, Bouchard has demonstrated strategic expertise and a results-driven management approach, overseeing the company's vast energy infrastructure which includes 88 hydropower stations and 264,000 km of power lines. Her new role will involve managing a $200 billion infrastructure plan and furthering agreements with Newfoundland and Labrador. The board expressed its confidence in Bouchard’s capability to guide Hydro-Québec through this new phase of development and enhance the company’s contribution to Québec’s economic and green energy future. Both François Legault, Premier of Québec, and Christine Fréchette, Minister of Economy, praised Bouchard as a visionary who combines practicality with strategic execution, crucial for leading Hydro-Québec in its mission during these transformative times. In her biography on the website of Hydro-Québec, Ms. Bouchard is described as the first woman in Québec to graduate from Harvard Business School’s Advanced Management Program. She also holds a Bachelor of Science from Université de Montréal and an MBA from Université du Québec à Montréal and Université du Québec à Chicoutimi. In October 2021, Ms. Bouchard received the prestigious Woman of WaterPower Award from Women in Renewable Energy (WiRE) and WaterPower Canada (WPC) in recognition of her contribution to the Canadian hydropower industry and the advancement of women in the renewable energy sector. In December 2024, she was awarded the King Charles III Coronation Medal, bestowed on Canadians having demonstrated dedication and commitment to the well-being of society. Image Credits: news.hydroquebec.com
Hydro-Québec has announced the appointment of Claudine Bouchard as its new President and CEO. With over 25 years of experience at the company, Bouchard's leadership will focus on advancing the Action Plan 2035 and leading prominent infrastructure projects.
There are two general opinions about tariffs that the public tends to hold. On the one hand, many people believe that tariffs are a good thing, as they can help boost the domestic economy by protecting domestic producers from foreign competition. It’s believed that this will result in more jobs for locals, and more money circulating amongst domestic hands. On the other hand, many people believe that tariffs are always a bad idea, because they make the prices of goods more expensive for everyday consumers regardless of whether those goods were imported or not. As with many things in life and economics, both of these perspectives have quite a bit of truth to them, but neither paints the whole picture. In order to answer our simple question, then, we’ll need to dive deeper into these perspectives and the use cases of tariffs. Tariffs make goods more expensive, create deadweight loss, and drive up prices Tariffs are a form of trade barrier, where a domestic government “artificially” increases the prices of foreign goods. We’ve already written about trade barriers and detailed how they can lower overall welfare (by creating deadweight loss), increase the costs of goods, prop up inefficient firms, and prevent economies from utilizing their comparative advantage. Thus tariffs are, from an economic perspective, inefficient for a number of reasons. An artificial price increase means that the market is forced away from its competitive equilibrium to one that has a higher price. Therefore, fewer consumers will participate in the market, and overall surplus to both producers and consumers is reduced. The deadweight loss created depends on how many consumers were pushed out of the market, which represents how many transactions were lost due to the government-induced price increase. Let’s consider this from another angle. If foreign producers can make a specific product, ship it to a different economy, and still sell it for a lower price than the domestic producers can, then (almost certainly) those foreign producers are more efficient than domestic producers in producing that product. From a pure efficiency standpoint, those foreign producers should be tasked with producing those items, and domestic labor and capital should be redirected into more efficient areas. This would increase overall welfare in a scenario where countries can trade with each other. In fact, the idea of comparative advantage goes further by stating that countries should specialize in producing the goods that they are relatively more efficient at producing, not just absolutely. But, if tariffs are imposed such that the price of foreign goods increases, it supports the relative inefficiency of domestic producers. Overall, both the foreign and domestic economies would be more productive and better off if domestic consumers could buy the cheaper foreign goods. Further, even the domestic economy would benefit (at least in the medium-to-long term) from more income if domestic labor and capital were redirected into a more efficient industry, where they could earn more than they would from producing goods that could be more cheaply imported. But the tariff prevents the “invisible hand” from correcting this misalignment. Overall welfare is reduced. These economic outcomes are purely negative. As such, most economists would probably agree that tariffs are a net negative on an economy in most situations. However, real life is seldom as simple as theory, and real economic policy may differ from what’s theoretically optimal. Tariffs are not a new invention — they’ve existed since ancient times — and nearly every country maintains a robust set of tariffs on foreign goods, even sometimes with close trading partners. This begs the question: if tariffs lower economic prosperity, why do nations and the economists that advise them continue to implement tariffs? The use cases of tariffs (and other trade barriers) Before we proceed, consider that today, almost every single country in the world implements a tariff on foreign goods. Most countries’ average tariff on imported goods falls between 3-5%, though some may have much higher average tariff rates, and specific products or industries often have higher or lower tariffs. The World Bank and the World Trade Organization publish data on worldwide average tariffs in a few places: for example, in the World Bank’s World Development Indicators DataBank and the World Trade Organization’s World Tariff Profiles reports. These can be helpful places to learn about the typical size and scope of tariffs in modern society. Even a cursory glance at this data confirms the fact that tariffs are very widespread. The fact that tariffs tend to lower economic prosperity, and the fact that (nearly) every nation implements them anyway, hints at an important truth: tariffs serve important functions that simple economic models of trade do not account for. Let’s review several of the major reasons why a tariff can, in fact, be justified. National security First, trade barriers can help maintain national security. A nation might find it very much in their interest to limit their dependencies on critical goods that are connected to their rivals or enemies. Adam Smith himself points this out in the Wealth of Nations: “If any particular manufacture was necessary, indeed, for the defence of the society, it might not always be prudent to depend upon our neighbours for the supply; and if such manufacture could not otherwise be supported at home, it might not be unreasonable that all the other branches of industry should be taxed in order to support it.” For example, in late May 2025, the European Union approved new tariffs against Russian and Belarussan agricultural goods, in part due to the ongoing conflict in Ukraine. The EU had the following justification when announcing these new trade barriers: “Imports into the EU of urea and nitrogen-based fertilisers from Russia…reflect a situation of economic dependence on Russia. If left unchecked, the situation could harm EU food security and, in the case of fertilisers in particular, leave the Union vulnerable to possible coercive measures by Russia.” Clearly, the EU currently views dependence on Russian agricultural goods as a potential security threat. While a tariff on these goods will lower EU consumers’ welfare, it will also reduce the EU’s vulnerability to potential threats. In this case, the EU seems to have decided that accepting some deadweight loss is worth the added security. Protecting domestic industries Often, the public may believe that having domestic producers of a good is better than importing those goods from foreigners. After all, domestic industries hire domestic workers, and invest in domestic areas, so implementing tariffs to protect domestic industries ought to grow the economy. But this train of logic misses an important concept: tariffs not only insulate domestic firms from foreign firms, they also insulate domestic firms from competition. Unfortunately, limiting competition reduces efficiency and can often result in increased prices, reduced consumer choices, or inferior product quality. It’s well-known that, given the right market conditions, perfect competition produces a Pareto efficient outcome (in fact, this is the “First Welfare Theorem” of economics) — and in a global economy, perfect competition requires open trade. Therefore, protecting a company from the force of competition is very often not recommended. There can be times when protecting a domestic industry is a justified decision, as was seen in the EU example above. But protecting domestic industries is not, in itself, a good enough justification for tariffs as it will reduce economic prosperity. It’s true that domestic jobs might be saved, and money might remain in domestic hands, but these “benefits” come at the cost of lower prosperity overall. Garnering political support Nevertheless, politicians who hope to garner support among voters (particularly those connected to specific industries) often promise to increase protection of domestic firms from foreign competition. This promise is usually seen as a positive thing by voters, and it can be difficult for the public to draw the connection between protectionism and the reduced prosperity that it often brings. The success of Donald Trump’s “America First” slogan among US-American voters is a recent example of this sort of promise, and how powerfully it can resonate with the voting public. It also hints at an underlying truth: whether or not a policy makes strict economic sense or is economically justified is not always the main issue that voters and politicians are concerned with. This doesn’t necessarily mean that voters are always behaving irrationally — it merely suggests that certain hard-to-measure attributes, like a sense of nationalism, may sometimes be more important to the public than the cold calculus of economics. Levelling the playing field Sometimes tariffs may be justified by governments on the basis that other countries are producing a good more cheaply than the free market would normally allow. For example, if a foreign government is subsidising one of their industries through direct subsidies, tax breaks, or other benefits, that support will enable cheaper production and therefore cheaper products. This could allow those foreign producers to (unfairly) undercut prices in other countries. In this scenario, the foreign product is more competitive in a domestic market to which it is imported. Allowing a domestic market to be flooded by foreign-subsidised goods may result in cheaper goods in the short term, but if it results in the disappearance of domestic or foreign producers who are, in fact, more efficient when subsidies are taken out of the equation, then in the long term competition will be (unfairly) removed and the remaining (previously subsidised) foreign firms will be able to set higher prices. In order to level the field, a domestic government may impose tariffs to offset the advantage the foreign producer gains from subsidies from their own government. Protecting human rights Sometimes, trade barriers are implemented on moral or safety grounds. If a country abuses human rights, other countries often impose strict sanctions until those rights are restored. For example, North Korea currently exists as a pariah state — very many countries and economic organizations around the world have levied significant sanctions on North Korea, with the aim of limiting its economic prosperity. This situation is due to a mix of factors, including North Korea’s authoritarian government and lack of cooperativeness with other nations. But human rights abuses contribute significantly to this status. Unfortunately, although it is one of the most impoverished nations in the world (partly due to these trade barriers), North Korea has stayed its course. Still, there’s little doubt that the country would be more prosperous if it had acquiesced to the demands of neighboring countries and restored further human rights to its people. While it might otherwise be possible for consumers to purchase certain products made in North Korea, for most nations preventing this trade as much as possible is an acceptable cost in order to maintain pressure on the North Korean government. Accounting for externalities In a simplified trade model, some factors that have value for an economy may not be accounted for. An example of this could include the benefit to the climate from importing fewer fossil fuels and subsidizing cleaner forms of energy instead. Climate deterioration is a negative externality, and markets that degrade the environment often don’t properly account for the full cost of their production because of this. Therefore, a tariff or other trade barrier in those markets (such as the market for oil) could be justified. There may also be positive externalities to a specific community for having a local industry that the community was historically built around. For example, the city of High Point, North Carolina, USA is known as the “furniture capital of the world”. This small city reportedly produced 60% of all furniture made across the entire USA by the 1950s. But High Point’s prosperity did not last forever; it’s now surrounded by vacant lots where furniture manufacturers packed up and left after cheaper, more efficient foreign competition eroded its grip on the industry. Furniture is a source of pride for residents of High Point and neighboring areas. Even for residents of North Carolina who have never been to High Point, the fact that a city in N.C. was the furniture capital of the world can provide its own sort of pride. It may very well be that a local or even national government decides that the history and sense of community that a situation like this provides is worth a trade barrier in favor of the community’s industry. In High Point’s case, the city has successfully pivoted from being a center of furniture production to one of furniture showcasing, which has allowed the city to retain some of its furniture pride and allowed it to remain relevant in the eyes of the furniture industry, even without major subsidies or trade barriers to help it remain (artificially) competitive. While it may seem rather silly to implement a trade barrier just to support local pride, these and similar scenarios are increasingly drawing the interest of economists. Happiness is sometimes thought of as the ultimate goal of economic growth, and if local pride is a significant source of it, perhaps it’s worth protecting (or at least studying). Further, there may be tangible benefits to protecting a specific community’s major industry, such as a lower crime rate than there would be otherwise. Geopolitical retaliation and game theory In game theory, an infinitely repeated game is one where players interact strategically forever; there is not an end to the game. The system of international trade can be viewed as a game in this way, where in each period (say, every year) nations choose a production mix and choose amounts to trade with one another. Each nation’s goal is to maximize their own economic outcomes, and free trade is necessary to achieve the greatest prosperity possible. So, if one country decides to impose tariffs on another — or causes an offense in some other manner — then other countries may decide to punish that country by retaliating, imposing their own tariffs with the sole purpose of damaging the offending country. This damage isn’t merely punishment for the sake of punishment: it’s intended to incentivize that country to return to their “good behavior”, to the benefit of their neighbors. For the sake of illustration, suppose that ancient Sparta chose to impose tariffs on ancient Athens. Athens, and other neighboring city-states, may then have imposed tariffs on Sparta as punishment. They’d likely have explicitly warned Sparta to remove their tariffs, or face worse backlash. This type of punishment ensures that it’s in Sparta’s best interest to remove its tariffs on Athens and continue to give Athenian commerce free access into Spartan markets. In game theory (particularly with infinitely repeated games) this is known as a “tit-for-tat” strategy, and it has been shown to be very effective at incentivizing the “correct” behavior in other players. In fact, this very situation can be likened to the mechanism of how Bertrand Competition results in a perfectly competitive market outcome. Thus, tariffs may be used simply as a threat or retaliatory punishment that aims to induce another country to cooperate. In this case, tariffs would theoretically be removed as soon as the offending party corrected their bad behavior, allowing everyone to benefit from free trade once again. Conclusion: tariffs have their place Let’s return to our simple question: are tariffs good or bad for an economy, and the people within it? Tariffs worsen market outcomes and introduce deadweight loss, making everyone worse off on average. But, sometimes, this loss can be worth the value that reducing trade in a certain good (or with a certain trading partner) can bring. Since nearly every nation in the world from ancient times until today has utilized tariffs, and have continued to do so through generations of great leaders and brilliant economists, it seems quite likely that tariffs have value that a cursory appeal to efficiency doesn’t appreciate. Still, in general, tariffs are hardly a panacea for societal problems, and they should not be levied carelessly — they do cause deadweight loss, after all. The simple answer to our simple question, then, is clearly “it depends”. While this answer isn’t a very snappy sound bite or headline, it does show that often — in both life and economics — there is a significant amount of nuance that must be considered before universally praising or condemning a concept such as the humble tariff. Image Credits: Getty/Canva
The first half of 2025 brought with it a renewed focus on global trade wars, particularly as the United States government began to (again) question many long-standing global trade agreements — whether formally inked or traditionally observed. As a result, discourse about tariffs reached a fever pitch in the news and across social media. So, let’s ask a simple question: are tariffs good or bad for an economy, and the people within it?
ONS Appoints New Director General for Economic Statistics
The Office for National Statistics (ONS) has announced the appointment of James Benford as the new Director General for the Economic, Social, and Environmental Statistics Group (ESEG). Benford will officially join the ONS team on August 4, 2025, transitioning from his current role as Executive Director for Data and Analytics Transformation and Chief Data Officer at the Bank of England. This key appointment comes as the ONS seeks to enhance the quality of its economic statistical outputs and renew public confidence during a transformative period. Emma Rourke, the Acting National Statistician, expressed her enthusiasm by stating, "I am delighted to welcome James at this pivotal moment for the ONS. He brings a wealth of leadership and transformation experience from his role at the Bank of England, as well as outstanding expertise in the field of economic statistics, data, analytics and AI-driven innovation." Benford's career at the Bank of England, where he focused on data transformation and AI strategy, provides a foundational experience that aligns with the ONS's goals of data quality improvement and system-wide statistical alignment. He has previously held senior civil service roles, contributing significantly to policy and strategy at prestigious institutions such as HM Treasury. Upon his appointment, Benford noted his eagerness to work with the ONS teams to fortify the relevance and trust of statistical data that informs critical decisions across sectors, stating: “I am honoured to take up this role at such a pivotal moment. I am excited to work with the talented and dedicated teams at the ONS to strengthen the quality and relevance of statistics - and to rebuild public trust in the data that informs so many critical decisions. “Better statistics require better alignment - not only within the ONS, but across the entire system. I look forward to collaborating with users and data suppliers across government, business, and academia to harness new data sources, embrace innovation, and ensure our statistics are fit for the challenges of a fast-evolving world.” This appointment aligns with an impending independent review of the ONS, guided by Sir Robert Devereux, aimed at further optimizing the organization’s functionalities and services. Image Credits: ons.gov.uk / Bank of England
James Benford joins ONS as the new Director General for Economic, Social, and Environmental Statistics, bringing expertise to enhance economic data quality.
Economic Science Association Announces 2025 Award Winners and Fellows
In an email to members the Economic Science Association has announced its three 2025 awards, as well as the five scholars named as its most recent fellows. The email was shared by Alvin Roth on his Market Design blog, and by the University of Pittsburgh, a faculty member of which, Lise Vesterlund, was elected as a fellow. We are delighted to announce the recipients of the 2025 ESA Awards and the newest Fellows of the Economic Science Association. These awards recognize those who have made outstanding contributions to our field through research, service, mentoring, and leadership: 2025 ESA Distinguished Service Award This award honours those who have played an exceptional role in the administration and growth of the ESA over the course of their careers. In 2025, we are proud to recognize two extraordinary recipients: Professor Yan Chen Professor Chen served as ESA President from 2015–2017. She established our mentoring program and served as the Director of the ESA Mentoring Program, a role she held until 2024. Through her efforts, hundreds of early career researchers have benefited from mentorship panels, helping to shape the next generation of experimental economists. Professor Catherine Eckel Professor Eckel served as ESA President from 2017–2019. Among her many contributions, she played a foundational role in establishing our ethics program, becoming ESA’s first Ethics Officer. She has been a dedicated mentor and advocate for junior scholars. Her leadership has been instrumental in making ESA a more inclusive and welcoming community for researchers at all stages of their careers. 2025 ESA Young Scholar Prize This prize recognizes a young scholar whose work has made a significant methodological contribution to experimental economics. Candidates must either be under the age of 40, hold an untenured position, or be within 10 years of completing graduate school. We are thrilled to announce the 2025 recipient: Professor Christine Exley Professor Exley is recognized for her research on motivated reasoning, charitable giving, and gender. Her work stands out for its innovative experimental designs, pushing the boundaries of how we study behaviour in complex social contexts. 2025 ESA Prize for Exceptional Achievement This award honours a researcher who has overcome unusually challenging circumstances to make impactful contributions to experimental economics. We are very pleased to announce that the 2025 award goes to: Professor Erin Krupka Professor Krupka is widely known for her impressive work on social norms, including the development of incentivized norm elicitation techniques that have become a cornerstone in the field. 2025 ESA Fellows The designation of ESA fellow is intended to recognize the lifetime contributions of ESA members who have advanced the frontier of knowledge in economics through the use of laboratory and/or field experiments. The designation of an individual as an ESA fellow is intended as a permanent recognition of their contribution to experimental science and to economics. We are delighted to welcome the following distinguished Professors as the 2025 ESA Fellows: Mark Isaac Rosemarie Nagel Robert Sugden Lise Vesterlund James Walker Their body of work has significantly shaped experimental economics and will continue to inspire researchers across generations. The awardees and Fellows were selected by the 2025 ESA’s Awards and Fellows Committee. Image Credits: University of Michigan / Texas A&M University / ESA / University of Michigan / University of Michigan
The Economic Science Association (ESA) has announced its 2025 Award Winners, together with its newest fellows.
UN Secretary-General Appoints Aya Suzuki as Senior Vice-Rector of United Nations University
United Nations Secretary-General António Guterres has announced the appointment of Aya Suzuki from Japan as the new Senior Vice-Rector of the United Nations University (UNU). The announcement was made on June 23, 2025, following consultations with UNU, and is effective from October 1, 2025. Aya Suzuki succeeds Sawako Shirahase, also from Japan. Suzuki, a noted Japanese development economist, is recognized for her work in poverty reduction, focusing on both agricultural and industrial development in developing countries. She currently serves as a professor in the Department of International Studies at the University of Tokyo and holds leadership roles as a Special Adviser to the University President and Deputy Director General of University Corporate Relations at the University of Tokyo. Through these positions, she has spearheaded initiatives to foster social entrepreneurship and international collaboration, alongside enhancing support for students from the Global South. UNU Rector Tshilidzi Marwala welcomed the appointment: “Dr. Suzuki’s extensive experience in development economics and her significant leadership roles within the University of Tokyo make her an exceptional addition to UNU’s leadership team. Her research experience aligns perfectly with UNU’s focus on addressing pressing global challenges and achieving the Sustainable Development Goals." Prof. Suzuki reacted to her appointment, saying: “I am deeply honoured and excited to join UNU and contribute to its vital mission”, said Dr. Suzuki. “I believe that my background and experience will enable me to further strengthen UNU’s impact in Japan and globally, supporting research and policy dialogue that addresses critical sustainable development issues.” Suzuki's professional background includes serving as an auditor for the Japanese Association for Development Economics and a visiting professor at the University of Waikato in New Zealand. Aya Suzuki holds a PhD in Development and Agricultural Economics from the University of California, Davis, and has a distinguished academic career marked by numerous publications on agricultural marketing and development economics. Image Credits: United Nations University
United Nations Secretary-General António Guterres has appointed Aya Suzuki as the new Senior Vice-Rector of the United Nations University.
Course offered by: Stanford University In the first week we consider the problem of aggregating different agents' preferences, discussing voting rules and the challenges faced in collective decision making. We present some of the most important theoretical results in the area: notably, Arrow's Theorem, which proves that there is no "perfect" voting system, and also the Gibbard-Satterthwaite and Muller-Satterthwaite Theorems. We move on to consider the problem of making collective decisions when agents are self interested and can strategically misreport their preferences. We explain "mechanism design" -- a broad framework for designing interactions between self-interested agents -- and give some key theoretical results. Our third week focuses on the problem of designing mechanisms to maximize aggregate happiness across agents, and presents the powerful family of Vickrey-Clarke-Groves mechanisms. The course wraps up with a fourth week that considers the problem of allocating scarce resources among self-interested agents, and that provides an introduction to auction theory.
Popularized by movies such as "A Beautiful Mind", game theory is the mathematical modeling of strategic interaction among rational (and irrational) agents. Over four weeks of lectures, this advanced course considers how to design interactions between agents in order to achieve good social outcomes. Three main topics are covered: social choice theory (i.e., collective decision making and voting systems), mechanism design, and auctions.
David Cutler replaces Lawrence Bobo as interim Dean of Harvard Social Sciences
Harvard University's Dean of Social Science, Lawrence D. Bobo, is stepping down from his role. He will take a sabbatical for the 2025-26 academic year, as confirmed by the Faculty of Arts and Sciences Dean Hopi E. Hoekstra in a recent email to the faculty. The current interim dean, Economics Professor David M. Cutler, who temporarily filled the position after Bobo took an unexpected leave of absence in spring 2025, will continue as interim dean for two more academic years until a permanent successor is found in the fall of 2026. Bobo is stepping down to address "pressing family matters". In appreciation of Bobo's contribution, Hoekstra highlighted his leadership over the past six years and his commitment to Harvard's teaching and research missions. Expressing his sentiments on leaving, Bobo stated he was "privileged" to serve in the role and took pride in seeing the social sciences thrive under his guidance. Bobo’s leadership was not without contention, notably for a recent op-ed piece urging for "sanctionable limits" on faculty speech, which stirred debates over academic freedom. The stepping down of Bobo comes at a time when Harvard confronts significant challenges, including budgetary constraints exacerbated by potential federal funding issues under the Trump administration. Hoekstra has already advised faculty to brace for a possible 20 percent budget cut and has halted non-essential expenditures. David M. Cutler, a seasoned economist with deep ties to health policy, including advising Presidents Clinton and Obama, brings extensive experience in academia and government roles. As the university administration prepares to initiate the search for a permanent dean next fall, Cutler will need to navigate through the administrative and financial hurdles facing Harvard's Faculty of Arts and Sciences. This story was originally reported in the Harvard Crimson by William C. Mao and Veronica H. Paulus. Image Credits: Harvard University / Harvard Economics
Lawrence D. Bobo has announced his resignation as Harvard's Dean of Social Science, citing personal matters as the reason. David Cutler, an economics professor, will take over as interim dean for the next two academic years during a period of budget constraints, reports the Harvard Crimson, a college newspaper.
UK Economics University Rankings Released (2026) - Cambridge top, LSE, Oxford, St. Andrews and Warwick in top five
The Complete University Guide has unveiled its 2026 league tables, highlighting the top universities for Economics in the UK. The rankings provide a comprehensive evaluation of institutions based on several criteria, including teaching quality, student satisfaction, and graduate prospects. Prospective students can utilize the league tables to make informed choices about their education by comparing universities based on important factors such as entry standards, research quality, and continuation rates. The ranking is compiled from data collected between 2019 and 2024. The top five remain unchanged since the 2025 edition, with Cambridge topping the overall table, followed in the top five by LSE, Oxford, St. Andrews and Warwick. Cambridge again scored highly across all categories, although the economics department at St. Andrews topped the table for entry standards, pipping Cambridge and Oxford. St. Andrews also outperformed the overall top ten for student satisfaction, coming third overall for this measurement. Other universities performing well for econ student satisfaction included the University of Hertfordshire (first for student satisfaction, 59th overall) and Herriot Watt University (second for student satisfaction, 28th overall). LSE and Warwick lead the field in economics research quality, followed by University College London (third for research quality, seventh overall), Cambridge and Nottingham (eighth overall). Cambridge led the field in terms of "continuation", roughly an inverse measurement of the drop-out rate, with an impressive 100% of first year econ students continuing their studies (if not at Cambridge, then at another institution). St. Andrews, Nottingham and Durham also performed well in this measurement, with 99% of economics freshers continuing their studies after their first year. In terms of graduate prospects, defined as the percentage of economics graduates who were in "skilled" employment within fifteen months of graduation, Cambridge again led the field, with 96%, closely followed by UCL, LSE and Kings College London (all 95%) and Oxford (94%). A second measure of graduate prospects measured how many students were "on track", who in a survey agreed that their postgraduate study or employment fit with their future plans. In this measurement Cambridge shared first place with the economics departments at Keele University (47th overall) and the University of York (18th overall). Notable improvements in the overall ranking include economics departments at the University of Nottingham (8th overall, up from 12th in 2025), University of Exeter (11th, up from 14th), Cardiff (21st, up from 25th), Strathclyde (23rd, up from 28th), Herriot-Watt (28th, up from 34th), the University of Leicester (37th, up from 47th) and the University of Plymouth (40th, up from 57th). New entries to the table were the economics programmes at Northumbria University (in at 66th), Liverpool Hope University (71st) and the University of Roehampton (74th). With the latest data available, students looking to pursue an Economics degree can explore and compare various UK universities to find the best fit for their academic and professional aspirations. Image Credits: thecompleteuniversityguide.co.uk
The Complete University Guide has published its 2026 league table for undergraduate Economics programs at UK universities, offering prospective students valuable insights into the best institutions to consider for their economics studies. As last year, the University of Cambridge tops the table.