Email from Levy Economics Institute Former BLS Commissioner to speak at Levy Institute THE LEVY NEWS Our Site Research Events Publications CONTRIBUTE September 9, 2025 HIGHLIGHTS   Dear Friends,, Last month’s labor market data confirmed a worrisome trend: the US economy is cooling rapidly. When signs of a slowdown became difficult to ignore in the July jobs report, President Trump dismissed the commissioner of the BLS and publicly questioned the integrity of one of the government’s most trusted statistical agencies. Despite these protestations, the August report revealed that job losses have grown even more widespread, with 64 percent of industries reporting cuts—up from 50 percent in July. Against this backdrop, we are pleased to welcome former BLS Commissioner and alumna Erika McEntarfer ('95) back to Bard College in her first public lecture since the BLS shakeup. Jobs, prices, and tariffs are the most critical pocketbook issues for American families, and BLS data remain the essential barometer for our nation's economic health. In her talk, Commissioner McEntarfer will cut through the noise to evaluate recent trends, including the impact of tariffs on prices, AI adoption by firms, current challenges in economic measurement, and why BLS data remain the gold standard for assessing the economy. Register and join us in person or virtually for this important conversation. The deteriorating employment situation comes on the heels of decades-long stagnant wage growth, runaway inequality, and eroding living standards. Meanwhile, as I discussed in a recent press briefing on the Federal Reserve Jackson Hole symposium (C-SPAN), the interest rate tool is wholly inadequate to address the inflationary impact from tariffs or climate-related disruptions. Alongside a reformulation of monetary policy, the principle of Fed independence must also be reconsidered. The Federal Reserve is a creature of Congress and must therefore be subject to more democratic accountability and oversight, not less. In other news, this month we are excited to welcome a new cohort of graduate students from around the globe, who arrive at a pivotal moment to engage with economic approaches that challenge the mainstream. As part of the Levy Institute community, they gain front-row seats to Institute events and early access to research opportunities. The next open house will be on October 10th—register here to join us. Sincerely, Pavlina R. Tcherneva President Levy Economics Institute   HIGHLIGHTS   Welcome Levy Graduate Students! The beginning of September marked the arrival of our latest group of new Levy Graduate students. As these bright individuals embark on their intellectual journeys at the Levy Institute, learning directly from the leading minds in heterodox economics, we were pleased to invite Senior Scholar James K. Galbraith for a lecture. Galbraith explored how the tools of economics shape the economic world itself, introducing the Institute’s distinctive approach to providing and shaping a critical alternative to the mainstream. Drawing on decades of work with the Institute, Galbraith looked at why mainstream economics has reached a dead end, how the Institute provides a home for transformative ideas—from Minsky and Godley to Modern Money Theory—and why its approach matters for understanding and addressing inequality, instability, and the economic policy of tomorrow. The recording of Galbraith's lecture, "Welcome to Levy Economics: What It Is and Why It Matters" is now available on YouTube for public viewing. We look forward to the year ahead and to seeing how the curiosity, skills, and insights of our newest students will shape their futures at Levy and beyond. Video 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   FEATURED PUBLICATIONS   Climate Catastrophe and the Second Coming by L. R. Wray Back in the early 2000s, financial market participants would wisecrack that unlikely events that should happen once in 10,000 years were occurring every month. We know where that led—to the Global Financial Crisis. Everything crashed. The Fed had to spend and lend $29 trillion to bail out the world’s financial system. It took economies a decade to recover. Today we read in the press that the frequencies of floods, droughts, glaciers melting, coral bleaching, heat records, severe hurricanes, and tornadoes have all jumped outside several standard deviations of the possible. Even aside from the threat to life and limb, the risk to property is becoming uninsurable and the coming hit to finance is unbearable. The evidence that we face immense and complex challenges related to climate catastrophe is overwhelming. Not in the near future, but now. Read More Policy Note 2025/6: The USMCA Is Not Competitive Against China by Arturo Huerta In this article, Scholar Arturo Huerta analyzes how US and Canadian pressure has pushed Mexico to reduce ties with China and deepen reliance on USMCA partners, despite weak growth, industrial decline, and persistent inequality. Mexico’s “Plan B” to boost competitiveness lacks a genuine industrial policy and leaves production dependent on foreign firms and imported components. The analysis argues that US tariff strategies under President Trump risk fueling inflation and geopolitical backlash, while the US, Canada, and Mexico do not have the investment levels needed to compete with China. Read More Featured Working Paper: Banking on Payments? by Jörg Bibow For the past hundred years or more, payments have been primarily associated with banking, and banking as we know it today—being the result of many centuries of evolution—features a bundling of (at least) three main lines of business: lending, deposit-taking, and payment services. In the past 15 years or so, banks have come under severe competition as providers of payment services. Will “banking on payments” become outmoded and payments untethered from banking, or will payments still have a place in the future of banking? Research Associate Jörg Bibow sets out to explore this question and address two related issues: the likely consequences (especially for the financing of growth and the provision of liquidity in the form of bank deposits) of the apparent “unbundling” of the traditional connections in banking between lending, deposit-taking, and payment services; and the implications of the evolution (or revolution) of money, payments, and banking for public policy, monetary theory, and the theory of monetary policy. Read More Featured Working Paper: Education and Economic Isolation The Gaza Blockade’s Role in Shaping Returns to Education in Palestine by Yousuf Daas, Sameh Hallaq, Danilo Leite Dalmon, and Jennifer Olmsted In this study, Yousuf Daas, Research Associate Sameh Hallaq, Danilo Leite Dalmon, and Jennifer Olmsted examine the impact of the Gaza blockade on private returns to education, with a focus on regional and gender disparities in the Palestinian territories, using data from the Palestinian Labor Force Survey (2000–2014). Results show that, generally, education yields higher returns in Gaza compared to the West Bank. Gender disparities are pronounced, with women consistently experiencing higher returns to education than men, despite systemic barriers to equitable labor market participation. The Gaza blockade itself negatively impacted wages, years of schooling, and returns to education, though women exhibited resilience by increasing their educational investment during this period. These findings show the importance of addressing structural barriers and promoting inclusive policies to mitigate the long-term consequences of conflict on human capital development. Read More GRADUATE PROGRAMS   As we welcome our newest class of bright and dedicated MA and MS students, we are also happy to announce that our applications for the MA and MS programs in Economic Theory and Policy for Fall 2026 are NOW OPEN! Deadlines Early Decision on January 15 Regular Decision on April 15 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. We invite you to apply today! Interested students should contact the Institute at [email protected] or visit our website for more information. Scholarships are available. IN THE NEWS   On Monday, August 18, Levy President Pavlina R. Tcherneva appeared on C-SPAN along with Representative Sean Casten (D-IL) and other experts during the segment hosted by Public Citizen, titled “Heat & Human Capital: How Climate Change Shapes Labor and the Fed’s Mandate Prior Jackson Hole Economic Policy Symposium.” The briefing highlighted the relevance of climate change to the future of labor markets, monetary policy, and the Federal Reserve’s mandate. Given that climate change will likely be absent from the conversation at Jackson Hole, as it has been in prior years, this event aimed to educate reporters of the climate change angles that should inform their reporting on the conference. With support from the William & Flora Hewlett Foundation and in collaboration with the University of Ghana and Stellenbosch Business School, the Levy Institute held “Gendered Aspects of Economic Security,” a three-session forum and workshop focused on women’s labor market frameworks. The event was held in Cape Town, South Africa on August 15, 2025. The research team at the helm of this workshop included Levy Scholars Ajit Zacharias, Thomas Masterson, and Aashima Sinha. On July 19, at Renmin University (人民大学), over 40 scholars, experts, and students, including Levy Research Associates Yan Liang and Eric Tymoigne, attended the Seminar on MMT and celebrated the Chinese launch of Senior Scholar L. Randall Wray’s New Macroeconomics. Read our blog for a detailed account of the proceedings. 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