Prof. Iván Werning speaks with NPR Planet Money hosts Amanda Aronczyk and Erika Beras about the dollarization of Argentina – an effort being made to address issues within their economy. “One of the big problems of dollarizing is you basically lose the capacity to influence the economy,” says Werning. “So we all hear about the fed in the U.S. lowering rates or raising rates to try and control to minimize recessions. When you dollarize, you give that capacity up.”
Brian Deese, an MIT Innovation Fellow, speaks with CNBC host Andrew Ross Sorkin about the state of the U.S. economy. “Perceptions of the economy have gotten increasingly polarized along political lines, and so when you look at that polling around sentiment and the economy one of the things it reflects is that increasing polarization that we are seeing everywhere and reflected in that data,” says Deese. “But number two, we do know historically that as economic data improves it leads to improved sentiment and in general, the incumbents benefit from that.”
Prof. Jonathan Gruber speaks with GBH reporter Hannah Loss about whether buying or renting a home is a better financial move. “I’m not saying people shouldn’t buy homes,” says Gruber. “I’m just saying that they should do it as a rational economic calculation. They should account for their propensity to save and whether they can handle the uncertainty of homeownership. They shouldn’t do it because their parents said it was a good idea.”
Prof. Tavneet Suri speaks with NPR reporter Nurith Aizenman about her ongoing research studying the impact of universal basic income with GiveDirectly, a U.S. charity that provides villagers in Kenya with a universal basic income. Suri says her results thus far, “add to the evidence that many poor people are trapped in poverty by a lack of capital for precisely the kinds of transformative investments they would need to vault them into higher incomes.”
Prof. Daron Acemoglu speaks with CNBC about the potential impact of AI in the workplace. “I think the incentive in the industry… especially with the idea that you have to dominate the market by becoming the largest players, I think those are not helping because those are making us rush down the easiest road, the lowest resistance path, which is often automation,” says Acemoglu. “I don’t think that is going to get us the kind of aspirations that are articulated where we can make blue collar workers, electricians, nurses, teachers much more capable because we have given them tools to be better workers and to make much higher quality services.”
Prof. Tavneet Suri speaks with NPR hosts Ari Shapiro and Nurith Aizenman about her research with GiveDirectly a U.S. based charity that provides villages in Kenya with universal basic income. Suri’s work studies how the method of income delivery payments – monthly income or single lump sum payments – can impact communities. “We need to see if these effects last,” says Suri. “Does it just disappear, or was this enough to keep them going forever?”
New research by Prof. Tavneet Suri and Prof. Abhijit Banerjee explores how to most effectively direct cash to low-income households, reports Dylan Matthews for Vox. Suri and Banerjee compare “three groups: short-term basic income recipients (who got the $20 payments for two years), long-term basic income recipients (who get the money for the full 12 years), and lump sum recipients, who got $500 all at once, or roughly the same amount as the short-term basic income group,” writes Matthews. “Suri and Banerjee found that the lump sum group earned more, started more businesses, and spent more on education than the monthly group.”
Writing for the Los Angeles Times, Professors Daron Acemoglu and Simon Johnson examine what the recent issues at OpenAI mean for the future of artificial intelligence. “Sam Altman’s dismissal and rapid reinstatement as CEO of OpenAI, the creator of ChatGPT, confirms that the future of AI is firmly in the hands of people focused on speed and profits, at the expense of all else,” they write. “This elite will now impose their vision for technology on the rest of humanity. Most of us will not enjoy the consequences.”
The work of Professors David Autor and Daron Acemoglu is highlighted in an article for The Economist that examines “how jobs are being transformed for the better.” A recent paper co-authored by Autor “demonstrated that tight American labour markets are leading to fast wage growth,” while a study from Acemoglu and others found “that use of robots meant higher wages for workers who were not replaced, and that these benefits spread beyond the automating firms.”
Four faculty members from across MIT - Professors Song Han, Simon Johnson, Yoon Kim and Rosalind Picard - speak with Curiosity Stream about the opportunities and risks posed by the rapid advancements in the field of AI. “We do want to think about which human capabilities we treasure,” says Picard. She adds that during the Covid-19 pandemic, “we saw a lot of loss of people's ability to communicate with one another face-to-face when their world moved online. I think we need to be thoughtful and intentional about what we're building with the technology and whether it's diminishing who we are or enhancing it.”
Prof. Albert Saiz speaks with Washington Post reporter Andrew Van Dam about the influence of geographical regions in politics. “High-amenity areas are more desirable and tend to attract the highly skilled,” says Saiz. “These metros tend to have harder land constraints to start with, which begets more expensive housing prices which, in turn, activate more NIMBY activism to protect that wealth.”
Forbes reporter Nancy Wang spotlights Tara Bishop '97 and Eileen Tanghal '97, co-founders of Black Opal Ventures, a venture capital firm focused on health tech. “Tara and Eileen’s story at Black Opal Ventures is a testament to how diversity and innovation can disrupt traditional landscapes,” writes Wang. “Their pioneering strategies and investments herald a new era for healthcare venture capitalism, where diversity and technology converge to create a more inclusive and impactful future.”
Prof. Emeritus Olivier Blanchard speaks with Robert Armstrong of the Financial Times about inflation, the rise in long yields and the fiscal endgame in the U.S. Blanchard urges regulators to, “have plans for a steady reduction of primary deficits to close to zero. Slow, steady, convincing, credible.”
Prof. Tavneet Suri discusses GiveDirectly, the world’s largest universal basic income (UBI) program, which has been providing almost 5,000 people in Kenya with “a payment of about 75 cents (62p) a day since 2017,” reports Philippa Kelley for The Guardian. “We do see people leaving low wage jobs,” says Suri. “They are going and starting businesses, and the businesses are doing great because there’s money around.”
New York Times reporter Conor Dougherty spotlights DUSP graduate student Nick Allen MS '17 and his work advocating for Land-value taxes (LVT) in distressed US cities.