Professor John Leahy, renowned economist and beloved professor and departmental chair at the University of Michigan, passed away unexpectedly on December 21, 2025 at the age of 64 following a recent accident. John was a valued colleague and a cherished friend. He was widely respected for his deep insights and his tireless dedication to research. As a mentor and teacher, he inspired generations of students with his enthusiasm and intellectual generosity.
Born in Eugene Oregon in 1961, John received his undergraduate degree in 1984 from Williams College, graduating summa cum laude with Bachelor of Arts degrees in Mathematics, History and German. In addition to his academic pursuits, John was a varsity collegiate athlete who played football for the Williams College Ephs. In 1986 he earned his Master of Science degree in Foreign Service from Georgetown University. John then studied economics at Princeton where he earned his PhD in Economics under the supervision of Andrew Caplin, Avinash Dixit and Giuseppe Bertola in 1990. Over the course of his academic career, John served on the faculties of Harvard, Boston University and New York University before joining the faculty at the University of Michigan, where he held the Allen Sinai Professorship of Macroeconomics and Public Policy.
John was a macroeconomist with broad research interests who contributed to a wide range of macroeconomic areas including monetary economics and economic theory. Over his academic career, John published more than 30 refereed journal articles, many of which were highly influential. John’s early work studied the economics of inaction. Economic decision makers often choose to take no action even while the pressure to adjust increases. At some point, when the incentive to adjust has increased to a critical point, the individual makes a significant, discrete change. Together with his frequent co-author Andrew Caplin, John applied these insights to monetary policy inertia, investment spending and price adjustment. John also made important contributions to the study of herd behavior and strategic delay, the effects of uncertainty on investment, and retirement spending. His more recent work focused on theoretical behavioral economics in which he analyzed rational inattention, self-control problems, and state-dependent preferences. His work is cited extensively and is recognized for its clarity, rigor, and creative approaches to solving complex economic problems. As one of the leading authorities on macroeconomics, John served as coeditor of the American Economic Review and editor of the American Economic Journal: Macroeconomics and as associate editor of the Review of Economics and Statistics. John was also a Fellow of the Econometric Society.
In 2026, John was about to begin an exciting new chapter as the Executive Vice President and Director of Research at the Federal Reserve Bank of Chicago. This new role reflected his commitment to applied economics, monetary policy, and public service.
Beyond his professional and academic achievements, John was devoted to his family whom he loved deeply and wholeheartedly. He is survived by his wife, Aditi Thapar, and his two children, Ishan and Ananya. He was enormously proud of his children and frequently shared stories about them and their achievements. John loved to travel, explore new places and cultures, and share those experiences with everyone. John was funny, witty, and warm, with a sharp sense of humor and a generous spirit. He brought infectious energy and enthusiasm to the department at Michigan and his absence is profoundly felt.
John Leahy’s legacy lives on in the Economics Department and Ford School of Public Policy at the University of Michigan and in the economics community more broadly, where his insights, mentorship, and collegial spirit continue to shape the field. His memory will be carried by his wide circle of friends, colleagues, and the countless students whose lives he touched.
