Interview with SFI Prof. Sarah Lein
Where did you grow up?
I spent the first years of my life in Tübingen and later in Rottweil, both small towns in southern Germany. Rottweil has an interesting historical relationship with Switzerland. In the 16th century, it formalized an alliance with the Swiss Confederation in Zurich, which lasted until the 19th century, creating a close economic and political partnership. The town is still filled with Swiss statues and inscriptions on the old houses in the center.
What were your hobbies as a child?
I was a passionate handball player as a child and teenager, spending almost every evening at training sessions and weekends at matches.
Where did you go to University ?
In Konstanz, Germany.
Where did you do your PhD ?
At the University of Zurich
What is your main research focus ?
My research primarily focuses on understanding monetary policy and its interaction with households, firms, and broader economic trends. I often work with detailed microdata, combining it with natural or field experiments to investigate how monetary policy impacts households and firms, with a particular emphasis on the role of heterogeneity among these agents. I am especially interested in how factors like, for example, the growing dominance of large firms influence monetary policy transmission and inflation dynamics. In addition, I explore the effects of exchange rate fluctuations on small open economies, such as Switzerland, and their implications for monetary policy transmission.
What research, that you are working on right now, are you really excited about and why ?
Together with co-authors, I am currently working on survey experiments with firms to better understand how information about monetary policy, such as information about inflation targets, influences their price and wage-setting behavior. Empirical evidence on how this type of information affects firms' decisions remains limited, yet it plays a crucial role in price and wage adjustments, which in turn impact actual inflation. Through these experiments, we aim to shed light on how firms process and respond to monetary policy signals and how this channel could potentially affect inflation. Even though it is only a small step, I think it helps us to understand monetary policy transmission and the role of inflation targets better.
What languages do you speak ?
German, English, and Norwegian.
What do you do in your spare time?
I spend most of my non-working time with my family and our three wonderful children. Along with a friend, I also instruct a women's sports class where we primarily play volleyball.
What is your favorite holiday destination ?
Engadin.