The London School of Economics and Political Science mourns the passing of Stanley Fischer, one of our most distinguished alumni and a towering figure in global economics and policy. Professor Fischer, who died on May 31 at the age of 81, exemplified the LSE spirit of rigorous scholarship combined with real-world impact.
Born in Northern Rhodesia (now Zambia) in 1943, Fischer’s journey to economic prominence began at LSE, where he earned his BSc and MSc degrees in economics between 1962 and 1966. Inspired by the quality of writing in John Maynard Keynes’ “The General Theory of Employment, Interest, and Money,” he had applied for and won a scholarship to study at LSE — a decision that would shape not only his own remarkable career but also the field of macroeconomics itself. He then continued his pursuit of a PhD at MIT and graduated in 1969.
Fischer’s intellectual foundation propelled him to become one of the most influential economists of his generation. His groundbreaking work bridging Keynesian economics with rational expectations helped establish what became known as New Keynesian Economics, fundamentally shaping modern macroeconomic policy.
Beyond academia, Fischer distinguished himself as a practitioner of the highest order, serving as chief economist of the World Bank (1988-90), first deputy managing director at the International Monetary Fund (1994-2001), governor of the Bank of Israel (2005-13), and vice chair of the U.S. Federal Reserve (2014-17). His leadership helped avert financial crises across decades and continents.
As an educator at MIT, Fischer mentored 49 PhD students who went on to lead central banks and shape economic policy worldwide, including Ben Bernanke, Mario Draghi, and Lawrence Summers. His influence extended far beyond the classroom, touching the lives of people globally through his students’ work and his own policy contributions.
Fischer’s legacy lives on through the countless economists he trained, the policies he helped shape, and the institutions he strengthened. His commitment to using economic knowledge for the betterment of society, particularly for the world’s poorest nations, reflects the very best of LSE’s mission and values. Many members of the Department have fond reflections of Professor Fischer.
Sir Nick Stern, reflecting on Fischer’s legacy, noted: “Stan was a fine academic economist, outstanding teacher, and guide to so many very distinguished PhD students… He was one of the most important national and international public servants of modern times at the World Bank, IMF, Bank of Israel, and the Fed. He brought judgement, authority, dignity and values to public life… He never forgot his African origins (Zambia) and was much loved across the continent. He chose public life because he wanted to make a difference, particularly for the poorest countries. And he did. Stan was one of LSE’s most distinguished alumni; he was deeply fond and proud of our institution. Above all, he was the kindest and most constant of friends.”
Vassilis Hajivassiliou added: “Stan was the third advisor for my PhD at MIT… I’ll never forget his support and insights, even though my thesis was in theoretical and applied econometrics. A funny bit: when he signed my completed thesis, he gifted me the pen he was using!”
Noble laureate Chris Pissarides continued: “Stan had always warm feelings towards LSE. I met him and got to know him well in the 1970s, when I was first appointed at LSE and before he moved to public policy, and he was always taking an interest in LSE and how we were getting on. His interest extended beyond the institution and engaged us junior macro faculty in discussions about our work. Going to the NBER at that time and seeing Stan take such an interest in my work was great motivation to carry on. I am sure my LSE affiliation had a lot to do with it. He was a great guy!”
Richard Layer remarked: “Stan was a wonderful friend and colleague. He combined brilliant common-sense economics with a strong desire for the public good – and he was a great tease. Somehow, he always had time for you. In the middle of a financial crisis he once found time to provide an ideal cartoon for a book of mine and then, when the book was published, he flew down to Washington and back to help me launch it – before flying on that night to meet Putin. He was just immensely supportive – and clever, and funny.”
Charlie Bean concluded: “As a PhD student at MIT, Stan taught me just about everything I know about macro and monetary economics. And when I later became a central banker, he acted as both mentor and guide. He was a truly wonderful person, modest and humble and always generous with his time. I shall miss him greatly.”
Stanley Fischer is survived by his three sons, Michael, David, and Jonathan, and nine grandchildren.