Michael Weber

Economics

Economic decisions are often based on gut feeling rather than data. When people register supermarket prices differently from what economic models assume, there are consequences: for consumption, savings behaviour and political effectiveness. This is where Michael Weber’s research kicks in. He investigates how inflation is perceived, the role of expectations and why key economic players often fail to reflect the reality of people’s lives in their communications.

To this end, Weber’s research adopts an innovative approach to linking macroeconomic theory with behavioural economics and survey data. One focus of his research addresses the significance of inflation expectations. Households often only evaluate one side of inflation, by emphasising the devaluation of their savings, for instance, whilst not recognising the advantages for borrowers. In experimental studies, Weber discovered that tailored information can alter people’s financial self-image and behaviour significantly. He also takes a critical look at the way central banks communicate, demonstrating that simple, easily understood statements – such as clearly expressed inflation goals – reinforce trust. Moreover, he explores how diversity in the bodies making decisions on monetary policy, such as including members from under-represented groups, increases the credibility and acceptance accorded to such institutions.

By recruiting Michael Weber, ESMT Berlin is looking to become the leading financial research institution in Germany. His Humboldt Professorship should build a bridge between the Faculty of Business and the new “European Expectations Center” which will be dedicated to research into the inflation expectations of companies and private households.

Brief bio

After completing his doctorate at the Haas School of Business, Berkeley, United States, Michael Weber was appointed to a professorship in the Booth School of Business at the University of Chicago, US. He is a Faculty Research Fellow at the National Bureau of Economic Research (NBER), a private, non-partisan, non-profit American research organisation. He is also a research professor at ifo, the Leibniz Institute for Economic Research at the University of Munich. In 2019, he was awarded the AQR Young Researcher Prize.

Michael Weber has been selected for a Humboldt Professorship and is currently conducting appointment negotiations with the German university that nominated him for the award. If the negotiations end successfully, the award will be granted in 2026.