Ben Bernanke PhD ’79, former chair of the Federal Reserve, has been awarded the 2022 Nobel Prize in economic sciences, reports Allison Morrow for CNN. Bernanke “received the award for his research on the Great Depression,” says Morrow. “In short, his work demonstrates that banks’ failures are often a cause, not merely a consequence, of financial crises.”
Ben Bernanke PhD ’79 has won a share of the 2022 Sveriges Riksbank Prize in Economic Sciences for his research on banks and financial crises, reports Micahel T. Nietzel for Forbes. Bernanke and his fellow winners are credited with significantly improving “our understanding of the role of banks in the economy, particularly during financial crises,” says The Royal Swedish Academy of Sciences.
Prof. Christopher Knittel speaks with Wall Street Journal reporter Andrew Duehren about how European governments are beginning to experiment with new ways to control energy prices.“Especially with the European energy-market policy interventions, what policy makers do not want to do is exacerbate these problems with their policies, and my fear is that is what these proposals would do,” says Knittel.
Prof. Nathan Wilmers and his colleague have used multiple measures of earnings to trace income inequality in the U.S., reports Tim Fernholz for Quartz. “After decades of increase since the 1980s, they found that income inequality peaked in 2012 and has held steady or perhaps even fallen since,” explains Fernholz.
Prof. Esther Duflo speaks with New York Times reporter Peter Wilson about how climate change can impact global inequality. “The responsibility for the emissions that lead to climate change rests mainly with rich countries and their consumers, but the cost is mainly going to be borne by citizens in poor countries,” says Duflo.
Graduate student Evan Soltas and Gopi Shah Goda, deputy director of Stanford’s Institute for Economic Policy Research, explore the impact that Covid-19 has had on the workforce, reports Sarah Todd for Quartz. “People ages 65 and up are more likely to leave the workforce after contracting Covid compared to younger people,” say Soltas and Goda.
A study by graduate student Evan Soltas and Gopi Shah Goda, deputy director of Stanford’s Institute for Economic Policy Research, underlines the pandemic’s impact on labor supply in the United States, reports Richard Luscombe for The Guardian. “Our estimates suggest Covid-19 illnesses have reduced the US labor force by approximately 500,000 people,” say Soltas and Goda.
Prof. Jonathan Parker and other researchers have found that Covid-19 relief payments have served as a form of insurance for families, reports Howard Schneider for Reuters. Although, “’the small short-term spending response and its pattern suggest that the (economic-impact payments) went to many people who did not need the additional funds,’” writes Schneider.
A study by graduate student Evan Soltas and Gopi Shah Goda, deputy director of Stanford’s Institute for Economic Policy Research, explores the economic toll of Covid-19, including acute illness and long Covid, reports Erin Prater for Fortune. The paper “also looks at the impact of other Covid-related medical consequences like organ damage, mental health issues, new kidney and heart problems, and the worsening of preexisting illness, in addition to the phenomenon of Covid forcing older workers into early retirement,” explains Prater.
Writing for The Hill, Prof. Jonathan Gruber, Representative Ro Khanna (D-California) and Matt Hourihan of the Federation of American Scientists write that there’s “an unfortunate history of Congress authorizing ambitious boosts for science only to fall short in appropriations. Congress deserves credit for getting the CHIPS and Science Act across the finish line, but legislators shouldn’t rest on their haunches. Instead, our leaders should sustain the moment they’ve started and ensure robust support for federal innovation — our future depends on it.”
A study co-authored by graduate student Evan J. Soltas finds that illness caused by Covid-19 shrank the U.S. labor force by around 500,000 people, reports Gwynn Guilford for The Wall Street Journal. “If we stay where we are with Covid infection rates going forward, we expect that 500,000-person loss to persist until either exposure goes down or severity goes down,” said Soltas.
Laila Shabir ’10 speaks with Washington Post reporters Jonathan Lee and Marlena Sloss about how the subtle cultural reinforcement of gender roles inspired her to found Girls Make Games, a summer camp where girls and nonbinary children learn the basics of video game development. “It makes sense that kids are attracted to video games because everything that games represent, kids are into,” Shabir said. “If we want to reach people, if we want to make a difference, I think video games have a massive societal influence and we should be tapping into that collectively. Not just on an individual level but as a society and as an employer.”
MIT and Harvard startup GiveDirectly, “identifies poor people and villages, usually in developing countries in sub-Saharan Africa, and distributes cash to them directly, usually via cellphone payment, instead of donations like food and livestock,” reports Dylan Matthews for Vox.
This summer’s heat waves and droughts have brought forth a series of issues including disruption of crop production, further inflation, and electrical issues, reports Colin Lodewick for Fortune. “I think it’s too early to quantify, but I have no doubt that these extreme events are contributing to high prices,” says Sergey Paltsev, deputy director of MIT’s Joint Program on the Science and Policy of Global Change. “In the future, if we don’t change the course of action, it’s going to be worse.”
Prof. Joshua Angrist speaks with CNBC about how his research on schooling and education has helped shaped government policy. “We don’t make specific policy recommendations, but we do encourage policy makers to look at the evidence,” says Angrist. “Whenever there is something on the public docket that is related to education policy, we always encourage both voters and politicians to look at the evidence.”