Prof. Sarah Williams speaks with Newsweek reporter Micah McCartney about how China’s construction boom lead to largely uninhabited developments dubbed “ghost cities”. Williams explains: “They needed a return on their investment, so they opened up new land and new loans for overleveraged real estate developers, so those developers could use these loans to pay back previous loans. The easy way to describe it is that it is a bit of a Ponzi scheme."
Prof. Jonathan Gruber speaks with GBH All Things Considered news anchor Judie Yuill to address recession concerns. “I think the important takeaway I have is that the real risks for our nation are not really short term, they’re long term,” explains Gruber. “We are a knowledge, investment and innovation-based economy. That’s what made America great for 80 years. The base of that innovation — the base of this knowledge economy — is our world-leading universities. If we start cutting them, we’re going to pay a long-run price in terms of our ability to grow as a nation.”
Prof. Sarah Millholland, Prof. Christian Wolf, Prof. Emil Verner, Prof. Darcy McRose, Prof. Marzyeh Ghassemi, Prof. Mohsen Ghaffari and Prof. Ariel Furst have received the 2025 Sloan Research Fellowship for “being among the most promising scientific researchers currently working in their fields,” reports Michael T. Nietzel for Forbes. “Sloan Research Fellows are chosen in seven scientific and technical fields—chemistry, computer science, Earth system science, economics, mathematics, neuroscience, and physics,” explains Nietzel.
In a letter to the Financial Times, Prof. Daron Acemoglu and his colleagues highlight the importance of providing access to affordable financing for the world’s poorest countries. “IDA, the World Bank’s concessional financing facility for these countries, has a proven track record for providing this support and its upcoming replenishment is a moment for the international community to match their stated concern with a stepped-up financial contribution,” they write. “We urge finance ministers of the G20 countries to lead this effort and increase contributions to the 21st replenishment of the International Development Association (IDA21).”
A new working paper by MIT Prof. Antoinette Schoar and Brandeis Prof. Yang Sun explores how different people react to financial advice, reports Robin Wigglesworth for Financial Times. “The results indicate that most people do update their beliefs in the direction of the advice they receive, irrespective of their previous views,” writes Wigglesworth.
Writing for Project Syndicate, Research Scientist Christian Catalini contributes to a Project Syndicate opinion piece makes the case for implementing cryptocurrency regulation that favors “builders over speculators.” Catalini and his co-authors write: “At the end of the day, policymakers in Washington must come together and draft new rules, rather than trying to squeeze crypto use cases into laws from nearly a century ago. And the industry, for its part, needs to tackle the many problems that traditional financial services and crypto leaders have long ignored.” They add: “The upside, much like in the early days of the internet, is a technology that can restore competition to sectors that haven’t seen it in decades.”
Prof. Jeff Gore speaks with Caity Weaver of The New York Times about the future of the U.S. penny and his belief that the penny should be retired. “People think that because it exists and is used, it means that it’s useful,” Gore notes. “We’re taking something that is actually a valuable commodity, something that has actual value, and then we’re converting it into something that people just throw away.”
Researchers at MIT are working toward training AI models “as subject-matter experts that ethically tailor financial advice to an individual’s circumstances,” reports Tanza Loudenback for Business Insider. “We think we’re about two or three years away before we can demonstrate a piece of software that by SEC regulatory guidelines will satisfy fiduciary duty,” says Prof. Andrew Lo.
Prof. Kristin Forbes speaks with Bloomberg reporters Jonnelle Marte and Reade Pickert about potential Fed rate cuts. “The last few years have been a wake-up call,” Forbes said. “You want to do a framework review that is robust to many different economic circumstances.”
Research Scientist Eric Rosengren joins CNBC’s Squawk Box to discuss recession fears and Fed rate cuts, pointing out the largely healthy economy likely means no cuts in the short term. “We're just not seeing much in the way of underlying economic data that would indicate that financial markets are actually signaling a problem,” Rosengren says. “There’s no obvious financial instability issue here and the economy continues to be doing reasonably well.”
Prof. Christopher Palmer joins Infotrak host Chris Witting to discuss his recent study that found logistical assistance increases the likelihood that low-income families will move to neighborhoods that offer better economic opportunity. Palmer and colleagues asked “how come more people with vouchers aren’t availing themselves of the opportunity to move to better neighborhoods? That was a prime motivation for our study.”
Mario Ho '17, cofounded NIP Group, "an esports organization with a team of 125 pro gamers from China, Europe and Brazil," reports Zinnia Lee for Forbes. “NIP Group said it plans to expand into new markets such as Southeast Asia, North America, the Middle East, Japan and Korea,” explains Lee. “The company added that it would further expand its businesses in areas including esports education, digital collectibles and licensing of intellectual properties.”
More than 40% of employer matches go to the richest 20% of workers, according to a new report on retirement savings. Marketplace’s Caleigh Wells interviews finance experts, including Prof. Taha Choukhmane, who says white employees tend to benefit most, “whereas those who are single parents of kids, those who are Black or Hispanic, those who have lower-income parents tend to contribute less and make less in these matching contributions.”
An opinion piece by Katie Martin of the Financial Times explores how Prof. Emil Verner and colleagues have found that climate pledges made by banks and other financial institutions are not effective at reducing carbon emissions. “We find no evidence of reduced financed emissions through engagement,” the paper states. “We conclude that net zero commitments do not lead to meaningful changes in bank behavior.”
Writing for Forbes, Prof. Christian Catalini makes the case that when it comes to today’s digital infrastructure, from AI and robotics to financial services and digital marketplaces, “if the United States wants to continue to lead, it needs to create the right conditions for competition to thrive. Like in the early days of the internet, this starts with policymakers embracing and nurturing a novel architecture based on open protocols.”