UC Berkeley Economics Professor Chen Lian has recently been awarded a two-year, $75,000 fellowship from the Sloan Foundation. Since 1955, the prestigious fellowship has been awarded annually to U.S. and Canadian researchers excelling in “creativity, innovation, and research accomplishments.”
Lian was inspired to pursue economics by the East Asian economic miracle — a period of rapid economic growth between 1965 and 1990. Lian’s research focuses on macroeconomics, behavioral economics and finance. He plans to use the $75,000 grant to further his current research on the causes and consequences of post-pandemic inflation.
In a recent interview with Berkeley Social Sciences, Lian discussed his background, work and how the fellowship will support his research. This interview has been edited for clarity.
Can you tell us more about your journey and role at UC Berkeley?
Chen Lian: I joined UC Berkeley in 2020 as an assistant professor of economics, and these past five years have been incredibly rewarding. I typically teach a Ph.D. course on advanced macroeconomics and an undergraduate course in behavioral finance. In terms of research, I focus on macroeconomics and its intersection with behavioral and financial economics. I investigate business cycles and macroeconomic stabilization policies, examining how bounded rationality and financial frictions shape these dynamics. UC Berkeley is particularly helpful in inspiring my research on core macroeconomics questions related to monetary and fiscal policy.
Was there a defining moment that inspired you to pursue the field of economics?
Chen Lian: The East Asian economic miracle was inspiring in my journey toward economics. Growing up, I saw how entire nations could transform themselves within a decade, and it was astounding to see the role economics played in fueling that growth. Witnessing such rapid development firsthand made me realize that economic ideas weren’t just abstract theories — they could genuinely make society prosperous. That realization sparked my passion for understanding the forces behind macroeconomics and ultimately guided me toward a career in economics.
What was your initial reaction when you discovered you were awarded the fellowship?
Chen Lian: When I first saw the announcement, I felt excited. It was not just a personal achievement — I saw it as recognition of the work my collaborators and I have been doing together. Sharing the news with them was particularly meaningful because this fellowship represents a collective effort. I am also grateful for the spotlight it shines on the subfields of economics that I work in, and I hope it encourages more people to study those areas.
Why do you think you were chosen?
Chen Lian: They may be interested in my work on macroeconomic stabilization policies, which hopefully has real-world importance, particularly regarding central banking and fiscal stimulus. I have also sought to illustrate how insights from behavioral and financial economics can enhance our understanding of key macroeconomic questions.
What do you plan to use the research grant for?
Chen Lian: I have not made specific plans, as I have not received details on using the grant, but a preliminary thought is to further my current research on the causes and consequences of post-pandemic inflation. Regarding the causes of inflation, we are studying whether, how, and to what extent fiscal deficits drive inflation. Regarding the consequences of post-pandemic inflation, we are studying why workers perceive it as so costly. Specifically, workers seem to perceive inflation as costly because obtaining a matching raise at work does not happen automatically. Instead, they often have to fight for these raises, leading to costly conflicts with employers.
How do you hope your research inspires others?
Chen Lian: I hope my work encourages others to look beyond traditional macroeconomics and explore how insights from other areas of economics—or even beyond economics—can shed light on core macroeconomic issues. I believe this approach can provide sufficient knowledge to help macroeconomics adapt to the constantly evolving challenges our society faces.
What's a certain habit that has been essential to your success?
Chen Lian: One habit I’ve found helpful is balancing discipline and efficiency in my daily activities with a willingness to explore riskier, less conventional topics. I maintain a structured workflow to keep mature research on track, but I also consciously pursue ideas that could lead to unexpected insights during early-stage exploration. This combination helps me stay productive while still pushing boundaries.