Thank you, British Academy

I am deeply honored to be named an International Fellow of the British Academy.

1873

I just finished reading Liaquat Ahamed's new book, 1873. It is excellent. The book examines the global financial crisis of 1873 and its aftermath, especially the role of railroads, international bond markets, deflation, and the debate over bimetallism. I found the period especially fascinating because I had read less about it than about other eras of world history. The discussion of railroads struck me as resonant with the current AI boom--a transformative technology that nonetheless attracted numerous hucksters and left some people with large losses.

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The Fed's New Task Forces

Yesterday, the Federal Reserve announced a group of task forces to review the central bank's framework for conducting monetary policy. Along with Tom Sargent and Bill White, I am serving on one of them.

Note to journalists: It would be premature for me to comment on the work of the task forces at this stage. However, you are free to consult my previous written work on these topics. This piece from two years ago may be especially relevant.

The Invite

Over the past week, I have been watching some films at the Nantucket Film Festival. The best I saw was The Invite, a dramedy about a couple (played by Seth Rogen and Olivia Wilde) in a dysfunctional marriage who invite their neighbors (Ed Norton and Penelope Cruz) over for dinner. It is very funny and very poignant, often at the same time.

It will be out in theaters in the next few weeks. 

What I've been reading

If you want to understand wealth in America, a good place to start is The Everywhere Millionaire by Owen Zidar and Eric Zwick. It offers a fact-filled analysis of the role of pass-through businesses, where many

wealthy people make their millions. A great balance of illustrative anecdotes and comprehensive data. My only objection is when the authors depart from their mostly positive analysis and insert their normative judgments. (The call in the epilogue for national health insurance and a higher minimum wage, whether you agree or not, comes off like a non sequitur--as if the authors had suddenly admonished the reader to eat more vegetables.) But overall, the book is excellent. 

Thank you to Eric for getting me a pre-publication copy. The book comes out in September. Book review editors: Take note.

What I've been reading

I am in the middle of How to Win a Trade War by Soumaya Keynes and Chad Bown. It is always smart, sometimes irreverant, and timely. I plan to use it as one of the readings for my Harvard freshman seminar in the fall. It should generate a great class discussion.

What I've been reading

I am a bit late to this party, but I finally got around to reading Dan Wang's Breakneck. It is a thoughtful and very readable book that taught me a lot about the Chinese economy and political system. Highly recommended for anyone interested in the topic.

What I've been reading

I just finished the new book by my ertswhile colleague Al Roth. Highly recommended! The subtitle is a good summary.

My Broadway Debut

Last week, I saw the play Every Billiant Thing, which was absolutely fantastic. As this NY Times article describes, audience participation is central. In our performance, I was picked to play the father. Here I am with the star, Daniel Radcliffe, backstage after the play, along with my wife and younger son.

Thank you, AEA

I am deeply honored to be named a Distinguished Fellow by the American Economic Association--especially at the same time that my wonderful colleague Ludwig Straub is awarded the Clark Medal.

I talk with Larry Kotlikoff

Click here to get to his podcast.

Upcoming Webinar

On March 19, I will be giving a webinar, sponsored by my publisher Cengage, on the fiscal future. If you are interested, click here.

Economic Theory Summer Camp

Organized by my colleague Eric Maskin. Click here for information.

Congrats to President Trump and Kevin Warsh

As readers of this blog know, I am not a fan of most of President Trump's economic policy, especially regarding international trade. But today the president made an excellent choice for the new chair of the Federal Reserve. I have known Kevin Warsh for more than two decades, and I expect him to be a superb leader of the central bank.

History of Econ Summer Camp

Graduate students with an interest in the history of economic thought should consider this summer program. 

Statement on the Federal Reserve

 Here is the link. I paste a copy below.

The Federal Reserve’s independence and the public’s perception of that independence are critical for economic performance, including achieving the goals Congress has set for the Federal Reserve of stable prices, maximum employment, and moderate long-term interest rates. The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence. This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly. It has no place in the United States whose greatest strength is the rule of law, which is at the foundation of our economic success.

SIGNATORIES

Ben S. Bernanke served two terms as Chair of the Board of Governors of the Fed, as well as Chair of the Council of Economic Advisers under President George W. Bush.

Jared Bernstein served as Chair of the Council of Economic Advisers under President Joe Biden.

Jason Furman served as Chair of the Council of Economic Advisers under President Barack Obama.

Timothy F. Geithner served as the 75th Secretary of the Treasury under President Barack Obama, as well as President and Chief Executive Officer of the Federal Reserve Bank of New York.

Phil Gramm served as Chairman of the Senate Banking Committee.

Alan Greenspan served five terms as Chair of the Board of Governors of the Fed, first appointed by President Ronald Reagan and then reappointed by Presidents George H.W. Bush, Bill Clinton, and George W. Bush. He also was Chair of the Council of Economic Advisers under President Gerald Ford.

Glenn Hubbard served as Chair of the Council of Economic Advisers under President George W. Bush.

Jacob J. Lew served as the 76th Secretary of the Treasury under President Barack Obama.

N. Gregory Mankiw served as Chair of the Council of Economic Advisers under President George W. Bush.

Henry M. Paulson served as the 74th Secretary of the Treasury under President George W. Bush.

Kenneth Rogoff is the Maurits C. Boas Professor of International Economics at Harvard University and former chief economist of the International Monetary Fund.

Christina Romer served as Chair of the Council of Economic Advisers under President Barack Obama.

Robert E. Rubin served as the 70th Secretary of the Treasury under President Bill Clinton, after serving as the first director of the White House National Economic Council.

Janet Yellen served as the 78th Secretary of the Treasury under President Joe Biden, Chair and Vice Chair of the Board of Governors of the Fed, Chair of the Council of Economic Advisers under President Bill Clinton, and President and CEO of the Federal Reserve Bank of San Francisco.

Principles of Economics, 11e

The new edition of my favorite textbook will be available on January 9, ready for spring semester classes.

News from Yoram

My friend Yoram Bauman (known for, among other things, his Ten Principles parody) has some news:

I only lost half my shirt on the stage-play version of Seize The Initiative! (a romantic comedy about democracy, climate action, and sandwiches) so now I’m looking to bet the other half on a movie adaptation. (Alternative title: Carbon Taxes: The Movie!)....Consider attending a table reading on T Dec 16 in person or on Zoom from 6-8pm MT (5-7pm PT, 8-10pm ET). Everyone is welcome to join (see the flyer here), please just sign up on this Google form. You can also read the latest version of the script at the world’s best URL: Yoram-Com.com. Please share this invite with others, especially if you know Woody Harrelson and want to help get him an Oscar for Best Supporting Actor!

I talk with Michael Klein

On the EconoFact podcast.

The economy 50 years from now

 Seven experts opine.

Flier on RFK Jr

Jeffrey Flier, the former dean of Harvard Medical School, says the HHS Secretary must go. I know Jeff, and I can attest that he is no conventional Ivy League liberal. But he believes in science.

Dear Committee Members

Like many who spend their lives in the ivory tower, I enjoy academic satires. That includes Richard Russo's novel Straight Man, the movie Wonder Boys, the TV show The Chair, and many books by David Lodge.

The most recent is Julie Schumacher's Dear Committee Members, written as a series of recommendation letters from an increasingly cantankerous creative writing professor. Highly recommended for those who like this genre. For me, it was a great way to end the summer, as I prepare for my first class on Tuesday.

Josh Barro, Betsey Stevenson, and Yours Truly

 A conversation in The New York Times.

Our Dollar, Your Problem

I just finished Our Dollar, Your Problem by my Harvard colleague Ken Rogoff. It is a great read for econonerds like me, especially for those who lean toward macro rather than micro. Ken wonderfully blends personal anecdotes with wise observations about the evolution of global finance.

Economics Teaching Conference

I will be speaking at a teaching conference to be held in New Orleans on November 5-7, 2025. If you might be interested in attending, click here.