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by Pavlina R. Tcherneva
Despite the post-COVID rebound, deep structural fissures in the American economy persist, fueling voter discontent and reshaping political landscapes. Against this backdrop, this year’s conference examined four critical themes:
- The evolution—and vulnerabilities—of the financial sector since the Global Financial Crisis, including climate finance and emergent risks through a Minskyan lens;
- The promise and limits of crisis response tools, assessing fiscal/monetary policy effectiveness and the resurgence of “pay-for” myths;
- The crisis of working America, linking economic grievances to political outcomes; and
- The global economic reordering, from trade realignments to alternative development models.
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by L. Randall Wray
They are at it again. Moody’s has finally joined the other two ratings agencies in downgrading US government debt. They’re sending the message that America must get its fiscal house in order to preserve confidence in the dollar—the premier currency that underlies the global financial system. In this note, Senior Scholar L. Randall Wray first addresses the issue of rating sovereign government debt: Do the credit raters know how to do it, and does it make any sense to do it? He concludes that the answer to both is “no.” He then turns to possible negative impacts of government deficits and debt—and assesses how likely it is that the US faces them. Finally, he addresses the claim that the dollar has provided an exorbitant privilege to the US and whether that may be coming to an end.
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by Mark Silverman and Yeva Nersisyan
The second Trump administration has seemingly added a new term to the English vocabulary – getting DOGE-ed. Almost every week we hear about another government agency getting the DOGE treatment, i.e., firing personnel, closing down offices, etc. The Department of Government Efficiency is supposedly making our government more efficient and hence saving the taxpayers some money. But what does it mean for the government to save money? And do we really save the population anything when we cut government spending?
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by Edward Lane
Attempts to undermine Social Security have been ongoing since its enactment in 1935. As the Social Security Administration projects trust fund insolvency by 2033 and Congress looks for deep spending cuts, the pressure is mounting for Social Security benefit cutbacks, despite promises from President Trump and House Speaker Johnson not to reduce benefits.
While extending the full retirement age is a focus for benefit cutbacks, some are advocating for a form of privatization (i.e., individual accounts). Elon Musk’s reference to Social Security as a Ponzi scheme only serves to undermine the current system and give weight to this ill-conceived idea.
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SIGN UP NOW FOR THE FIRST INFO SESSION OF THE UPCOMING APPLICATION CYCLE
August 6th on Zoom at 12 PM EST
At Levy, economics isn’t just studied—it’s reimagined. Backed by over 30 years of groundbreaking policy research and impact, the Levy Institute Graduate Programs in Economic Theory and Policy stand apart by integrating heterodox perspectives with rigorous analysis—examining money, finance, government budgets, employment, poverty, and time use through a critical, policy-oriented lens.
Unlike traditional programs, we emphasize the social and institutional forces that shape economic outcomes, empowering students to gain key tools, such as stock flow consistent macroeconomic modeling and gender-aware analysis, that bridge theory and practice.
The Levy Institute programs combine rigorous academics with a close-knit, supportive community. Students thrive in an environment where collaboration is key—sharing research, debating ideas, and working alongside faculty and peers to deepen their understanding through meaningful intellectual exchange.
Interested students should contact the Institute at [email protected] for more information. Scholarships are available.
To find out more, visit bard.edu/levygrad and apply now.
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Senior Scholar L. Randall Wray has released a new book with Edward Elgar Publishing, titled Understanding Modern Money Theory: Money and Credit in Capitalist Economies. In this book, Wray emphasizes the critical role played by both credit and state money in capitalism and explores the origins and evolution of the modern monetary system. Wray was also featured on the podcast 1Dime Radio, where he discussed the history of money and how money works in the modern economy.
Released today, Wray and Levy Scholar Yeva Nersisyan co-authored an opinion piece for The Hill, titled "Why we should stop worrying and learn to love the national debt."
Senior Scholar James K. Galbraith released an Op-Ed with Project Syndicate, discussing the forces at play in bringing a Trump presidency into being. Twice. Read "How Trump Happened" now. On July 6th, Galbraith was additionally featured on the Sunday Show podcast with 94.1 KPFA for a segment titled "Where Will the Money Go?" His book, Entropy Economics (co-authored with Jing Chen) was reviewed by Vivek Arora for the International Monetary Fund: Economics and Nature's Laws. Galbraith will also be speaking at the Praxis Peace Institute on July 18, "The Need for an Economic Paradigm Shift." Register here to attend virtually.
Levy Institute Scholar Stephanie Kelton wrote "Everything You Think About the Deficit Is Wrong" for The Lever, where she discusses the downgrading of America's credit rating and why it matters.
In June 2025, Research Scholar Giuliano Toshiro Yajima attended the second edition of the Escuela de Verano de Economía Aplicada para América Latina (EVEAAL), held from June 2–6, 2025, at UNAM in Mexico City. He led the Stock-Flow Consistent (SFC) modeling module, coordinated the lab sessions, and concluded the event with a workshop presentation on ecological SFC modeling for Latin America.
The UN Department of Economic and Social Affairs released a statement on July 8th, quoting Levy Scholar Fadhel Kaboub. The piece, titled "Debt relief, concessional finance can help countries meet their development goals, say UN Advisory Board members," covers discussions at the UN DESA Global Policy Dialogue on “Reimagining Blended Finance: Aligning Capital with the SDGs,” held at the fourth International Conference on Financing for Development (FFD4) in Sevilla, Spain.
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