A new initiative for academic economists called “Economics for Inclusive Prosperity” was recently launched in the US:
A short introduction by Dani Rodrik
Many of the dominant policy ideas of the last few decades are supported neither by sound economics nor by good evidence. Neoliberalism – or market fundamentalism, market fetishism, etc. — is a perversion of mainstream economics, rather than an application thereof. And contemporary economics research is rife with new ideas for creating a more inclusive society. But it is up to us economists to convince their audience about the merits of these claims.
Economics for Inclusive Prosperity
By: Dani Rodrik – Harvard University
Two of the ten policy briefs published:
A “standard” in financial markets requires the government to step in
Macro-prudential and regulatory policies should be designed to favor risk-sharing. Unfortunately the current tax and regulatory system is designed to do the opposite. The present regulatory regime is “bankcentric”, with an exclusive focus on minimizing default probability for banks. This is short-sighted and does not take into account the true cost for the real economy when the financial system passes risk squarely on debtors.
How to think about finance?
By: Atif Mian – Princeton University
The role of government in the age of AI
As technology advanced in recent decades, it increasingly left workers behind and led to sharp increases in inequality. The current wave of progress in artificial intelligence is likely to accelerate these trends. This note lays out three complementary approaches to countering these developments. Firstly, since technological progress generates net gains for society as a whole, the winners could in principle compensate the losers and still be better off. Secondly, progress should be steered to minimize the losses of workers. Thirdly, there is an important role for government intervention in information technology to thwart the rise of monopolies that extract rents from society.
Labor in the Age of Automation and Artificial Intelligence
By: Anton Korinek – University of Virginia