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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.
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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.
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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.
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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.
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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.
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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.
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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.
| | 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. | | | |
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