Karin Jõeveer, a CERGE-EI PhD alumna, is an Associate Professor and Director of the Department of Economics and Finance at Tallinn University of Technology. She also plays a central role in shaping Estonia’s economic strategy as a member of the Supervisory Board of the Estonian Central Bank and the Estonian Fiscal Council. In this interview, Karin reflects on the academic foundations that launched her career, the economic challenges Estonia faces today, and the decisions that will shape the future of the Eurozone.
You’ve held roles in both academia and central banking. How did your career path lead you to where you are today?
My PhD studies at CERGE-EI provided me with a strong, well-rounded education and valuable work experience that laid the foundation for my future career. During my PhD, I spent a semester at the University of Michigan, which was an excellent opportunity to experience life at a major research university. This visit was crucial—not only did it expose me to academic work in the U.S., but it also enabled me to access data that formed the basis for two of my dissertation essays.
In addition, I interned at the European Bank for Reconstruction and Development (EBRD) in London and held a short-term research position at Eesti Pank (the Estonian Central Bank). The EBRD experience introduced me to the UK academic environment, which led me to send out my CVs and eventually take up positions in the UK as a lecturer and researcher. Meanwhile, my time at Eesti Pank allowed me to write the final essay of my thesis and build professional connections in Estonia—contacts that proved invaluable when I later returned home permanently.
Are there any skills or mindsets from your time at CERGE-EI you still draw on today?
CERGE-EI was an excellent choice and served as a strong launching pad for my career. Beyond the academic preparation, what I value most from that time are the people I met.
The Estonian economy has been in a fragile state for the past few years, with sluggish growth and ongoing struggles to contain the government budget deficit. As a NATO border state, Estonia has committed to raising its defense spending to 5% of GDP and maintaining it at that level in the coming years. This ambition places additional pressure on the national budget and debt position.
As a member of the Estonian Central Bank’s Supervisory Board and the Fiscal Council, what are some of the key economic challenges Estonia is currently facing, and how are these being addressed at the institutional level?
The Estonian economy has been in a fragile state for the past few years, with sluggish growth and ongoing struggles to contain the government budget deficit. As a NATO border state, Estonia has committed to raising its defense spending to 5% of GDP and maintaining it at that level in the coming years. This ambition places additional pressure on the national budget and debt position.
To meet these fiscal demands, the government has already implemented several unpopular but necessary measures, such as increasing VAT and excise taxes, introducing new taxes (e.g. automobile one), and making spending cuts wherever feasible. There are now some early signs of economic recovery, which could support the government in achieving its financial goals.
Looking ahead, what kind of challenges or projects excite you most in your current role?
This fall, a new governor of Eesti Pank will be elected. As a member of the supervisory board, I will play a direct role in selecting the next governor—someone who will help shape the Eurozone’s monetary policy in the coming years. It’s exciting to know that my vote truly matters in a decision of such significance.
In your opinion, what characteristics should the ideal governor have, or what criteria will you focus on when electing one?
In my mind, a central bank governor should be knowledgeable and have some management experience. But most important to me is the ability to communicate monetary policy decisions clearly. So, I’m looking for someone good at speaking to the media and capable of giving excellent live interviews.
How do you stay connected to the CERGE-EI community, and what does the alumni network mean to you today?
I regularly read the CERGE-EI alumni newsletter—it’s a great way to keep in touch with the wider alumni community and stay up to date with developments in Prague. I also think alumni meet-ups in different parts of the world are an excellent way to stay connected without needing to travel to Prague.
Karin Jõeveer is a CERGE-EI PhD in Economics alumna, Associate Professor, and Director of the Department of Economics and Finance at Tallinn University of Technology. She has conducted research at the London School of Economics and has lectured at various universities across the United Kingdom. In addition, she serves on the Supervisory Board of the Estonian Central Bank and is a member of the Estonian Fiscal Council.
