Insights from the Inaugural PHBS-IER Conference on Economic Research

The inaugural PHBS-IER Conference, which took place on December 22 and 23, 2025, at the Peking University HSBC Business School (PHBS), spotlighted cutting-edge research in economics. Jointly organized with the International Economic Review (IER), the event drew over 130 distinguished professors and rising scholars from elite institutions such as Princeton, the University of Pennsylvania, and Tsinghua University. The focus of this two-day conference was centered on "Financial Frictions for Firms and Households: Implications for Economic Development and Government Policies."

One of the standout moments of the conference was the keynote address by Nobel laureate Thomas Sargent. His presentation, entitled "Fiscal Consequences of the US War on COVID," illustrated the historical evolution of US fiscal and monetary policies, spanning from the 19th century to contemporary issues. Sargent emphasized that crises, including wars, frequently influence fiscal deficits, induce price volatility, and lead to significant institutional changes. He elaborated on the intricate connections between fiscal, monetary, and tax policies, particularly highlighting the important role of game theory in applicable decision-making processes for policymakers. His insights into "budget constraints," "coordination between monetary and fiscal policies," and "power distribution" were particularly noteworthy in understanding these interactions.

In addition to Sargent's keynote, the conference featured a plethora of presentations touching upon various aspects of economics. These included an exploration of multinational corporations and their effects on technology advancement, as well as a deep dive into the reallocation and pricing of illiquid capital within financial markets. Investigations into how low interest rates affect inflation and debt rollover were also prevalent topics, enriching the overall dialogue.

The conference saw remarkable participation, with 211 high-quality paper submissions through an open call. After careful review, eight papers were selected for presentation; six of these were published in a Special Issue of the IER. This rigorous selection process underscores the quality of research being produced in the field today.

PHBS and IER aim to leverage this conference as an annual platform for ongoing exchange and collaboration. The commitment to fostering high-caliber economic research will not only boost academic discussions but is also expected to contribute invaluable insights that further the advancement of economics, particularly in Asia and on a global scale.

The future looks promising as PHBS solidifies its standing within the academic community, enhancing its collaborations with global educational institutions and reinforcing its dedication to economic research and knowledge dissemination. With initiatives like the PHBS-IER conference, it sets the stage for future dialogues and research cross-pollination, bridging gaps and advancing collective understanding in economic theories and practices.