Economics

Prof. Kristin Forbes speaks with Associated Press reporter Christopher Rugaber about the Federal Reserve’s announcement declaring the end of the three-year inflation surge. “It really has been a remarkable success, how inflation went up, has come back, and is around the target,” says Forbes. “But from the viewpoint of households, it has not been so successful. Many have taken a big hit to their wages. Many of them feel like the basket of goods they buy is now much more expensive.”

Glenn Loury PhD '67 is a guest on the Boston Globe podcast “Say More” with Shirley Leung, discussing his memoir “Late Admissions: Confessions of a Black Conservative.” Now a Brown economics professor, Loury had an unusual and difficult life for an academic, saying he wrote the memoir because “I owed it to myself to tell the real story, and to rely on the generosity of the reader to see past the darkest and ugliest to the hopefully decent and honest human being grappling with his life.”

Prof. Daron Acemoglu is a guest on the Financial Times podcast, “The Economics Show with Soumaya Keynes," detailing his research on the economics of AI and implications for workers. He says AI could help the current workforce communicate better and control its own data, while opening up possibilities for the geographically or economically disadvantaged, if the right policies are put in place. “I think having this conversation, and really making it a central part of the public debate that there is a technically feasible and socially beneficial different direction of technology, would have a transformative effect on the tech sector,” he explains.

Writing for Forbes, Andrew Binns highlights research from Prof. Daron Acemoglu suggesting total productivity gains of AI could be as little as 0.53% over 10 years, much lower than common estimates. 

Writing for The Boston Globe, Prof. Thomas Kochan explores how workers, unions, CEOs and politicians can all draw lessons from the Market Basket protests in 2014. "The key lesson for workers and unions is to draw on customers and citizens as allies and sources of power," writes Kochan. "If workers’ demands make sense, customers and community members will support them."

Prof. Jonathan Gruber speaks with Marketplace host Daniel Ackerman about the difficulties associated with Boston’s rental market, where due to the large number of college students many housing units start their lease cycles on September 1. “You can’t fit them all in the apartment at the same time,” explains Gruber. “You can’t all get moving trucks to move in that same day.” 

Prof. Nathaniel Hendren speaks with Wall Street Journal reporter Rachel Wolfe about the evolution of economic mobility in the United States. “It’s still a coin flip whether or not you’ll earn more than your parents, but mobility probably hit a record low in the early 2020s,” says Hendren. 

Prof. Kristin Forbes speaks with Bloomberg reporters Jonnelle Marte and Reade Pickert about potential Fed rate cuts. “The last few years have been a wake-up call,” Forbes said. “You want to do a framework review that is robust to many different economic circumstances.”

Prof. William Deringer speaks with David Westin on Bloomberg’s Wall Street Week about the power of early spreadsheet programs in the 1980s financial services world. When asked to compare today’s AI in the context of workplace automation fears, he says “one thing we know from the history of technology - and certainly the history of calculation tools that I like to study – is that the automation of some of these calculations…doesn’t necessarily lead to less work.”

Research by Prof. David Autor finds that following the Covid-19 pandemic, wages for lower-paid US workers increased, reports Soumaya Keynes for The Financial Times. Autor and his colleagues found that people switching to better jobs served as a mechanism for boosting pay. 

Research Scientist Eric Rosengren joins CNBC’s Squawk Box to discuss recession fears and Fed rate cuts, pointing out the largely healthy economy likely means no cuts in the short term. “We're just not seeing much in the way of underlying economic data that would indicate that financial markets are actually signaling a problem,” Rosengren says. “There’s no obvious financial instability issue here and the economy continues to be doing reasonably well.”

Prof. Daron Acemoglu speaks with NPR Planet Money hosts Greg Rosalsky and Darian Woods about the anticipated economic impacts of generative AI. Acemoglu notes he believes AI is overrated because humans are underrated. "A lot of people in the industry don't recognize how versatile, talented, multifaceted human skills and capabilities are," Acemoglu says. "And once you do that, you tend to overrate machines ahead of humans and underrate the humans."

Writing for Fortune, Prof. Daron Acemoglu explores the estimated scale of AI’s impact on the labor market and productivity. “The problem with the AI bubble isn’t that it is bursting and bringing the market down,” writes Acemoglu. “It’s that the hype will likely go on for a while and do much more damage in the process than experts are anticipating." 

Prof. Jonathan Gruber joins GBH’s All Things Considered to discuss stock market jitters, AI hype and interest rates, urging calm and a long-term view. “No one who’s in the market should be overreacting to one day’s movement,” Gruber says. “These short-run reactions are really overreactions to individual bits of news.”

Prof. Simon Johnson and Prof. David Autor speak with New York Times reporter Emma Goldberg about the anticipated impact of AI on the job market. “We should be concerned about eliminating them,” says Prof. Simon Johnson, of the risks posed by automating jobs. “This is the hollowing out of the middle class.”