EconoFact Chats

Michael Klein, and Binyamin Appelbaum, lead writer on economics and business for The New York Times Editorial Board discuss Binyamin’s book The Economists’ Hour. The discussion focuses on the history of economists influencing public policy, and the limitations of free markets in solving issues like inequality.

The COVID-19 pandemic plunged the U.S. into its worst economic downturn since the Great Depression. In the spring, it was unclear if there would be a quick recovery, a slow recovery, or if the recession would be prolonged. Seven months on, an added concern is whether a recovery would be K-shaped—with economic conditions improving for some, while hard times continue for others. This week on EconoFact Chats, host Michael Klein, and Jay Shambaugh of George Washington University discuss economic recovery policies—specifically, what governments can do in the short run, and the effects of long-run shocks to the economy.

This week on EconoFact Chats, Michael Klein and Harvard Economics Professor Jeremy Stein discuss the impact of COVID-19 on the financial system and, through this, on the broader economy. They compare and contrast the current economic crisis, and the policies to combat it, to the 2008 financial crisis. The conversation draws on Stein’s experience as a member of the Board of Governors of the Federal Reserve, a senior advisor to the Treasury Secretary, and as a member of the National Economic Council, as well as on his research on the links between the financial sector and the broader economy.

Economics has changed, with new areas of inquiry such as behavioral economics, the role of information, and network and contagion effects. Economics students have also changed, coming from more diverse backgrounds, representing a wider range of ages, and having broader career and life interests. The economy has changed as well, due to the 2008 financial crisis, the rise of the digital economy, the effects of COVID-19, and the growing importance of services.

As we begin the new academic year, EconoFact Chats interviews Betsey Stevenson and Justin Wolfers (University of Michigan) on the way they have addressed these changes in their new Principles of Economics textbook. Betsey and Justin also discuss their efforts to make the teaching of economics more inclusive, to draw to the subject women and people from underserved minorities.

One third of the U.S. workforce, or an estimated 50 million workers, has a child under 14 in their household. Working parents depend on safe and reliable care for their children in order to be able to work. But preschool care and after school programs are in danger of permanently shutting down in the wake of COVID-19. This affects not only the parents and the children but also the employees and owners of child care facilities. The large negative impacts of limited access to childcare fall disproportionately on women, and those with lower incomes. Tune in to the latest episode of EconoFact Chats with host Michael Klein, and Alicia Modestino of Northeastern University, as they discuss how a lack of childcare affects both families and the overall U.S. economic recovery.