Macroeconomic

Robert E. Hall and Michael Woodford gave the world a more rigorous basis for policy evaluation to help optimize monetary and fiscal responses. Their approach now informs central banks across the world. Here’s the academic trail they pursued.

The work of this year’s Nobel winners for economic sciences, Robert E. Hall and Michael Woodford, helped revive Keynesian economics. But this field still has some way to go before we can reliably anticipate and mitigate instability that threatens jobs and livelihoods.

This year’s Nobel Prize honours Robert E. Hall and Michael Woodford, whose work draws upon microeconomic studies for a macro policy framework that holds special relevance in a world of high flux and economic shocks. Hear of ‘policy reflexivity,’ think of this duo.

Economists now take these results seriously but not literally. The paper encouraged wonks to think more deeply about institutions, but they have also picked it apart.

The IMF’s latest outlook may appear reassuring, but India’s economic challenge could shift from chasing high growth to sustaining it as oil shocks, volatile capital flows and other constraints test the economy.

This K-pop group’s return after a hiatus doubles as a masterclass in behavioural economics. Regardless of the music’s quality, the domination of minds and consumer behaviour has created a multi-billion-dollar cultural asset.

This is a false trade-off. We must pursue productivist policies that grant workers a stronger voice while also empowering them with new tools of technology like AI. This could raise productivity, serving consumers well, and also improve job quality.

Two and a half centuries after ‘The Wealth of Nations’, the father of economics deserves a fair assessment. Read his ‘Theory of Moral Sentiments’ too. His nuanced exploration of human motives and commercial life remains strikingly relevant today.

Adam Smith’s 1776 classic is widely misinterpreted to cast him as an apologist for selfishness and greed. But an actual reading of his famous book takes apart the myth of his ‘market fundamentalism.’ Here’s why.

The erosion of trust in government may have less to do with culture wars or social media than with economic policy. If countries keep the ‘misery index’ down, with unemployment low and inflation held firmly in check, trust could be revived. Good macro management could do the job.