Department of Economics Archives

Pedestrians walk past the New York Stock Exchange. Stocks have fallen sharply so far this year as the market readies for the Federal Reserve to raise interest rates to try to tame inflation, which is at its highest level in nearly four decades. AP Photo/John Minchillo

What is causing inflation?

The U.S. is experiencing its highest annual inflation rate since the 1980s. The causes of the overheated economy are far different today, says Robert Triest, chair and professor of economics at Northeastern, who offers ways to gauge this peculiar moment in history.

by Ian Thomsen January 26, 2022

now hiring sign on a Sonic Restaurant sign

Here’s why the US labor shortage may not be such a bad thing

The latest jobs reports in the United States present a puzzling fact: Millions of people remain unemployed even as many employers complain of worker shortage. So, what’s going on? Would-be employees are in prime position to bargain for better wages and working conditions, say Northeastern economics scholars.

by Molly Callahan June 22, 2021

“The construction equipment industry is really a global trading asset,” says Northeastern graduate Zayd Kuba. “It doesn’t matter where it’s manufactured.” Photo courtesy Zayd Kuba

He’s modernizing the construction industry in Africa and the Middle East

To make buying and selling construction equipment easier internationally, Northeastern graduate Zayd Kuba founded an online marketplace for commercial vehicles and spare parts. Since March, the site’s listings have nearly doubled to more than 50,000.

by Khalida Sarwari August 11, 2020

Millions of U.S. citizens who are out of work because of the COVID-19 pandemic have come to rely on a federal boost to the unemployment benefit that now hangs in limbo. Cutting it permanently could spell disaster for the country’s economy, says Northeastern economics professor William Dickens. AP Photo by Nam Y. Huh

Here’s what could happen if the US suspends federal pandemic unemployment benefits

Members of Congress are locked in a stalemate over the details of another economic stimulus package for people and businesses affected by the COVID-19 pandemic. Hanging in limbo is a $600-per-week COVID unemployment benefit that millions of people in the U.S. had come to rely upon. Cutting it permanently could spell disaster for the country’s economy, says Northeastern economics professor William Dickens.

by Molly Callahan August 7, 2020

A man walks past mannequins in the windows of the Macy's store in the Downtown Crossing area of Boston, on April 15, 2020. U.S. retail sales plummeted in March, an unprecedented decline, as the viral outbreak forced an almost complete lockdown of commerce nationwide. AP Photo/Charles Krupa

How will the economy bounce back?

How well, and how quickly, state and federal economies recover from the COVID-19 crisis has everything to do with the choices that officials make now, says economist Alicia Sasser Modestino. “The sky is falling, but we might have some ways to put the pieces back together.”

by Molly Callahan May 1, 2020

Would stronger antitrust laws have prevented shortages of ventilators and hospital beds?

Rampant corporate acquisitions and public policy failures have left the United States vulnerable in many ways, says economist John Kwoka. The current public health emergency has exposed the weaknesses in the medical equipment and hospital industries.

by Khalida Sarwari April 24, 2020

Is a recession necessary to fight COVID-19?

A record 3.3 million people in the United States filed for unemployment last week. “We don’t want people to go back to work—that’s the whole point of ‘social distancing,’ of trying to bend the curve,” says William Dickens, University Distinguished Professor of economics and social policy.

by Laura Castañón and Tyler Machado March 26, 2020

Traders gathered at the post of Specialist Anthony Matesic, background center, on the floor of the New York Stock Exchange, Tuesday, Feb. 18, 2020. AP Photo/Richard Drew

Interest rate cut leaves U.S. Federal Reserve with little ammunition to fight potential recession

As COVID-19 continues to disrupt global supply chains, interest rate cuts will do little to stem an economic downturn, says Robert Triest, professor and chair of the economics department. On top of that, he says, the rate cut reduces the Fed’s leverage to stave off a recession.

by Emily Arntsen March 5, 2020

Photo by Matthew Modoono/Northeastern University

What’s the real cost of a bottle of soda (and everything else)?

The price you pay in store doesn’t actually cover the full cost of your drink, says Northeastern economist Madhavi Venkatesan.

by Kaitlyn Budion February 19, 2020

Alicia Sasser Modestino is an associate professor of public policy and urban affairs, and economics, as well as the associate director of the Dukakis Center for Urban and Regional Policy. Photo by Ruby Wallau/Northeastern University

Do women in economics face extra scrutiny?

In the field of economics, seminars are critical to the growth of professionals and the field as a whole. But, new research from associate professor Alicia Sasser Modestino shows that men and women are treated very differently at such seminars.

by Molly Callahan January 14, 2020