Email from Levy Economics Institute Politics, insights, and the stakes for working families. THE LEVY NEWS Our Site Research Events Publications CONTRIBUTE August 6, 2025 HIGHLIGHTS   Dear Friends, It was deeply troubling to see the abrupt firing of BLS Commissioner Erika McEntarfer, a Bard College alumna, raising concerns about the politicization of economic data at a time when transparency is more critical than ever. The Bureau of Labor Statistics (BLS) plays a vital role in understanding labor market dynamics and its research has been indispensable to our work at the Levy Institute. Many of our scholars rely on BLS data daily and are deeply interested in questions of methodology. To this end, we had produced a BLS-commissioned Levy Institute report, on the need to incorporate nonmarket consumption in the consumer expenditure survey. Recent trends in the labor market demand urgent attention. As I discussed in my recent Marketplace interview, it is crucial to recognize that, while job growth appears to be softening, the real story is one of widespread fragility. Most discussions have focused on the downward revisions, but it is important to note that half of all industries lost jobs this month, and even when looking at the three- and six-month averages, it is clear that these sectors had been losing steam for some time. Healthcare, which has been an engine of employment growth, will not be able to sustain its previous momentum and support job growth for the entire economy. Long-term unemployment has been trending up for over two years and working families will be facing more insecurity in an already precarious job market. As I keep my eye on the labor market, I look forward to participating in Public Citizen’s policy briefing ahead of the Federal Reserve’s Jackson Hole meeting this year, where we’ll examine how the Fed can—and should—integrate climate risks into its toolkit, assessing their impact on labor markets and the broader economy. Meanwhile, I hope you enjoy the recordings from our highly successful annual conference and a series of new Levy Institute publications, covering topics from wage suppression in Greece to managing financial fragility without crises in China to how to implement bottom-up fiscal policies as was the case with Argentina’s Jefes Plan. More on these below. We have also issued Senior Scholar L. Randall Wray’s thought-provoking Summer Seminar keynote on how to escape the traps of reductionist MMT heuristics, while advancing the paradigm shift the MMT lens offers. As always, I welcome your engagement with these critical discussions. Pavlina R. Tcherneva President Levy Economics Institute   HIGHLIGHTS     Video Now Available from the 32nd Annual Levy Institute Conference We’re pleased to share the full video recordings from our conference on June 16, 2025: "Money, Finance, and Economic Strategies in Fractured Times." Revisit the day’s discussions—including panels on Minskyan analysis for the modern era, climate finance, and global development—as well as a keynote address from Rep. Ro Khanna on building a democratic economic strategy for the future. Session 1: Introduction and Beyond Minsky Moments Session 2: Economic Policy in the Age of Trump Keynote Address: Representative Ro Khanna (CA-17) Session 3: US Policy and the Global Economy At the 33rd IAFFE Conference 2025, Levy Scholars Thomas Masterson and Aashima Sinha, along with collaborators from the University of Ghana and Stellenbosch University, presented their joint work on Gender Gaps in Employment Quality and Lifetime Earnings in Ghana and South Africa. "Mandates don’t always mean coverage." Even when benefits such as pensions, paid leave, or maternity protection are legally guaranteed, they may fail to reach many workers in practice Characteristics of employment relations such as unionization, written contracts, or permanent employment could act as enablers of non-wage employment benefits (e.g., health insurance, maternity leave, paid time off, retirement security). Stay tuned for upcoming papers and reports exploring this issue in depth.   FEATURED PUBLICATIONS   MMT: Heuristics versus Paradigm Shift by L. R. Wray Mainstream economics is in disarray. As Frank Hahn remarked four decades ago, “The most serious challenge that the existence of money poses to the theorist is this: the best developed model of the economy cannot find room for it.” He was speaking of General Equilibrium theory, but his claim applies equally well to Dynamic Stochastic General Equilibrium theory, which is used by all the major central bankers of the world to model the economy. Let that sink in. Our central bankers use a model to understand the economy that has no money, no banks, and no financial system. The Queen of England asked why none of the mainstreamers foresaw the Global Financial Crisis. Their failure was baked into their model. Read More Working Harder, Paying Less: Wage Suppression in Greece by Vlassis Missos and Nikolaos Rodousakis The state of the labor market in Greece exemplifies the socioeconomic damage caused by austerity. More than 15 years into a recession that has proven both deep and enduring, signs of a full recovery remain absent. Vlassis Missos and Research Associate Nikolaos Rodousakis demonstrate in this policy note how Greece's economy remains deeply affected by prolonged austerity, with low wages, high work hours, and minimal recovery in household income despite near-full employment. The authors propose policy changes needed to restore decent living conditions in Greece, including job guarantee programs and instituting a minimum wage that supports a decent standard of living rather than serving merely as a low-cost entry point. Read More Featured Working Paper: Financial Fragility Without Financial Instability Reform in the Chinese Banking System: Zhu Rongji’s and Its Aftermath by Leonardo Burlamaqui Between the late 1990s and mid-2000s, China’s banking sector underwent a profound yet largely underappreciated transformation—arguably one of the most consequential episodes of financial restructuring in recent economic history. This paper analyzes the Chinese banking reform process through a Minskyian lens, with particular attention to the conceptual ambiguity between financial fragility and financial instability in Minsky’s own formulation. The core contribution lies in demonstrating that the reforms implemented under Zhu Rongji successfully resolved a condition of deep and systemic financial fragility without tipping into full-blown financial instability. In that sense, China’s banking overhaul constitutes a non-Minskyian resolution to what was, in classical terms, a Minsky-type problem. The Chinese case thus provides a rare empirical example of mounting financial fragility managed without crisis—offering critical insights for contemporary efforts at financial stabilization under conditions of systemic vulnerability. Read More Featured Working Paper: The Job Guarantee | Lessons from Argentina’s Jefes Plan and Its Reform by Agustín Mario In this article, Research Associate Agustín Mario considers the rationale for reform of Argentina's Jefes y Jefas de Hogares Desocupados program, a job guarantee case study, within the broader framework of an economic policy based on two fundamental pillars of social inclusion: the expansion of social security and aggregate demand management that would drive economic growth and, thus, job creation. Mario argues that, while the Jefes was faded out of use, it could have been expanded to achieve full employment and an internally stable currency in Argentina, advocating for the re-adoption of a job guarantee program for long-term economic wellbeing, sustainable development, and employment for all. Read More GRADUATE PROGRAMS   SIGN UP NOW FOR THE FIRST INFO SESSION OF THE UPCOMING APPLICATION CYCLE TODAY 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. IN THE NEWS   Levy President Pavlina R. Tcherneva discusses her reaction to recent labor market statistics as reported in Friday’s BLS jobs report. You can hear the report by Marketplace and Daniel Ackerman released August 4. Scholar Fadhel Kaboub has been chosen for the third term of the United Nations High-level Advisory Board on Economic and Social Affairs (HLAB). HLAB was established in the context of United Nations development system reform, as a key part of efforts to enhance support to Member States of the United Nations in implementing the 2030 Agenda for Sustainable Development. Kaboub was also invited to speak at the United Nations Fourth International Conference on Financing and Development (FFD4), in Sevilla, Spain. On July 23, Senior Scholar L. Randall Wray spoke on the panel, "Strategies to Address Job Security and Economic Inequality" at the WAAS@65 Conference: Addressing Global Social Turbulences: Sources & Solutions. Watch the recording here. How did you like this email?   Our Website | Press Room | Donate   Levy Economics Institute | Blithewood Bard College | Annandale-On-Hudson, NY 12504-5000 US Unsubscribe | Update Profile | Constant Contact Data Notice