Ulrike Malmendier, a Professor of Economics and Finance at UC Berkeley and member of the German Council of Economic Experts, dives into the impending economic challenges posed by President-elect Trump’s tariff plans. She discusses how Europe is bracing for a potential trade shake-up, highlighting sluggish consumer spending and the need for unified insolvency laws to enhance investment. The toy industry’s shifts amidst these tariffs reveal adaptive strategies, emphasizing the importance of flexible fiscal rules to stimulate sustained growth.

Behavioral economist Ulrike Malmendier discusses how past experiences shape financial decisions, linking upbringing on opposite sides of the Berlin Wall to investment behaviors. Insights on overconfidence in CEOs and the impact of personal experiences on economic models and inequality.