Dear reader,

January opens with economics at the frontier: from new ERC-backed research and a fresh look at global trade to Nobel-inspired debates on growth and timely media voices on Europe’s economic future in a rapidly changing world.

Sincere regards,

Ernst Fehr, Director
Hans-Joachim Voth, Scientific Director

AI, easy money, and the next financial crisis

Why do financial markets remain surprisingly resilient despite high interest rates? What role do liquidity, fiscal policy, and the AI investment boom play in shaping risk-taking? And how robust is the international economic order in an increasingly multipolar world? These questions are at the core of a new Thought Supply episode, featuring former governor of the Reserve Bank of India Raghuram G. Rajan and former WTO chief economist Ralph Ossa.

ERC grants for our professors

The European Research Council (ERC) has awarded two highly competitive ERC Consolidator Grants, totaling nearly € 4 million, to researchers at the University of Zurich (UZH) Department of Economics. Lorenzo Casaburi and Maya Eden, who are both affiliated with the UBS Center, were selected among 349 grantees across Europe. Their projects address how land markets shape economic development and how governments should respond to declining birth rates.

Nobel Prize

Growth of 1.5 percent per year doubles income over a working life

Progress is not guaranteed; it depends on openness, knowledge transfer, and innovation-friendly conditions. The 2025 Nobel Prize in Economic Sciences has resonated strongly within the UZH Department of Economics, reflecting close intellectual and personal ties to the laureates. Respective media contributions highlight how the prize-winning work on innovation and creative destruction is closely linked to ongoing research and public debate in Zurich.

Navigating global shifts

In this edition of our annual review, we put the spotlight on a dynamic 2025, shaped by global developments that created a need for clear and compelling analysis. Our affiliated professors were in high demand as expert voices in the media on the most pressing economic questions. At our events, some of the most renowed thought leaders discussed topics from the shifting landscape of global trade to the strategic choices facing Switzerland and Europe.

Tariffs in translation

How do tariffs affect firms, consumers, and global value chains? And what do they mean for Europe and Switzerland in a fragmented world economy?

The new issue of .inspired Magazine, now published jointly for the first time by the Department of Economics, the UBS Center, and the Excellence Foundation Zurich, takes a closer look at trade policy beyond slogans and headlines.