Global economies & markets

Epidemiology and economics: A smart containment strategy for COVID-19 could save the U.S. economy $10 trillion. Here: the effects of states easing lockdowns, putting a (literal) price on individual vs. societal costs of the disease, how to get the economy running and what changes to expect long-term, and why public health measures are so important.

Long before the coronavirus pandemic, advances in artificial intelligence (AI) were already causing unprecedented changes in work and business. Now, the world’s top thinkers on the economics of AI — Daron Acemoğlu, Diane Coyle, and Nobel Prize winner Joseph Stiglitz — are drawing new lessons from today’s crisis.

Increasing urbanization can prove challenging in the era of COVID-19 social distancing, particularly given the dependence on essential services and the unique health concerns of high-population density. A new study clarifies the tradeoffs between city and suburban patterns of consumption and how different areas fulfill essential daily functions.

Does fiscal stimulus raise interest rates and tighten credit markets, as theoretical models of the macroeconmy predict? New research shows what the real effect of government spending is on the U.S. economy — and what high levels of inequality have to do with the interest rate response to fiscal stimulus.

What can we expect across global financial markets following the COVID-19 crisis? UVA Darden Professor Marc Lipson and guest Cornell S.C. Johnson Professor Andrew Karolyi discuss international and domestic listings, financial versus real business cycles, and both short-term and long-term implications of de-risking.

The coronavirus pandemic has devastated large portions of the global economy and spurred an enormous government response to stem the fallout. Darden Professor Kinda Hachem considers the state of the U.S. economy and the extraordinary efforts underway to prevent further collapse.

What drives household consumption? Standard theories of consumer behavior may not fully account for a major driver of spending (or not spending). Professor Dan Murphy and colleagues have a new model to help us understand consumption choices and the broader effects of policymakers’ attempts to stimulate the economy.

Mandated by the Constitution, the U.S. Census Bureau counts the nation’s residents every 10 years. The data determine seats in the House and federal funds for local communities, as well as inform practical research. Examples from Darden: studies on poverty and race, allocation of opportunity zones, and the effect of technology on rich and poor.

What can railroad bonds from 150 years ago teach us about globalization, portfolio diversification and the cost of financial market segmentation? At a time when markets are increasingly isolated globally and limit opportunities to invest abroad, new research examines what investors are willing to pay to gain access to investment in foreign markets

Shadow banking is on the rise in China. This begs some important questions. Among them: Why? How is the shadow banking scene different in China vs. the U.S.? Do government regulations do what they intend to? Given the nature of shadow banking and the importance of the Chinese economy to the global economy, the situation bears examination.