The pace at which artificial intelligence is transforming jobs is astounding, but while it boasts higher productivity AI is also increasing wage inequality. When workers are replaced by machines, real wages decline, and the owners of capital prosper. So who owns AI and how should its benefits be distributed? In this podcast, the IMFs Andrew Berg and Maryam Vaziri discuss AI’s inequality problem, the subject of their article in December’s special AI edition of Finance and Development magazine. Berg is Deputy Director, and Vaziri is an economist, both in the IMF Institute for Capacity Development.
Transcript: https://bit.ly/3NdgRxR
Millions of families around the world- even some countries, rely on workers living abroad to keep their economies afloat. In fact, global remittances reached a record $647 billion in 2022—three times that of official development assistance. Dilip Ratha is lead economist for migration and remittances at the World Bank. In this podcast, journalist Rhoda Metcalfe asks Ratha about his own experiences growing up in rural India and how they led him to become a leading voice on the power of remittances to reduce global poverty. Ratha says remittances are timely, large, stable, and best of all, they are countercyclical.
Transcript: https://bit.ly/3QlDhyU
Read Resilient Remittances at IMF.org/fandd
The passage of the Inflation Reduction Act in the United States unleashed its largest investment in climate and energy ever. But it also left many countries questioning some of its protectionist provisions, accusing the US of bending, if not breaking international trade rules under the WTO. So how do we move forward on climate without going backward on trade? Noah Kaufman says international trade rules need to be redesigned if protectionism is not to become an unintended consequence of green industrial policy. Kaufman is a senior research scholar at Columbia University's Center on Global Energy Policy and served in the Biden Administration’s Council of Economic Advisors.
Transcript: https://bit.ly/3CwHIiw
As rising geopolitical tensions chip away at globalization, will a more fragmented world mean stronger regional pacts? Economist Michele Ruta says regionalism in a time of conflict is unlikely to triumph, but rather is likely to change. The trend toward strengthening ties with friends and loosening them with non-friends is making regional trade less about integration and more about discrimination. Transcript: https://bit.ly/3MHNbIc
Industrial policy refers to a set of policies that governments use to bolster national industries or companies deemed strategically important for economic competitiveness, social outcomes, or national security. The approach has been used in many countries to create global giants like Huawei, General Electric, Volkswagen, and Airbus to name a few. Economist Ruchir Agarwal is currently studying industrial policy, among other things, at the Yale School of Management and Harvard Kennedy School. In this podcast, Agarwal says while the practice of choosing national champions fell out of favor in the 1980s, rising geopolitical tensions of late have sparked a renewed interest in industrial policy, which can be a guise for protectionism.
Transcript: https://bit.ly/3oxgswS
While the currency values of today’s economic powerhouses help maintain global financial stability, the currency systems in the 19th century were tied to precious metals and France played the stabilizing role. In the early 1800s, most countries tied their currencies to silver or gold, but Napoleon tied the French franc to both, which sparked the era of global bimetallism. IMF economist Johannes Wiegand has studied bimetallism, and in this podcast, he says this almost-forgotten 19th-century episode shows that international cooperation is essential for a stable global monetary system.
Transcript: https://bit.ly/41CunjU
Read the article at IMF.org/fandd
The longtime critics of globalization are having another moment, claiming supply chain shortages, high inflation, and increasing migration are products of an overly globalized world. But history suggests more globalization- not less, can help counter those disruptions in the global economy. Harold James is a professor of history and international relations at Princeton University and an IMF historian. In this podcast, James says globalization offers an antidote to inflationary pressures.
Transcript: https://bit.ly/3m5mB1J
Look for In Defense of Globalization in the March issue of Finance and Development: IMF.org/fandd
More than half of the world’s population lives in cities, and it’s expected that almost 70 percent will live in urban areas by 2050. People are attracted to cities for the economic and social opportunities they offer. But if the COVID pandemic taught us anything, it’s that population density presents significant health risks. David Cutler is a Professor of Economics at Harvard University’s Kennedy School of Government and the Chan School of Public Health. Cutler and his Harvard colleague Edward Glaeser write about Cities After the Pandemic in the December issue of Finance and Development. In this podcast, David Cutler discusses the article with journalist Rhoda Metcalfe. He says cities now need to put more emphasis on public health to keep economies healthy.
Transcript: https://bit.ly/3UHR6X6
Read at IMF.org/FandD
After decades of being shrouded in suspicion and controversy, nuclear energy is emerging as a viable clean alternative to oil and gas. The war in Ukraine has turned post-pandemic energy shortages into a full-blown energy crisis and nuclear power plants across Europe that were destined to close will continue to operate. Ted Nordhaus is the Executive Director of the Breakthrough Institute, which looks for technological solutions to environmental problems. Nordhaus and coauthor Juzel Lloyd published an article titled The Nuclear Resurgence, in the December edition of Finance and Development. In this podcast. Nordhaus discusses the benefits of nuclear energy with Journalist Rhoda Metcalfe. Transcript: https://bit.ly/3Uq4yim
Read The Nuclear Resurgence at IMF.org/FandD
Cryptocurrencies have grabbed news headlines with their dramatic highs and lows, and their proponents argue they could revolutionize the financial system, making it faster and fairer. But is the cryptocurrency craze dragging us all into dangerous waters? Hilary Allen is a professor of law at American University and studies the impact of new financial technologies on financial stability. Allen is also the author of The Superficial Allure of Crypto published in the September edition of Finance and Development. In this podcast, Allen sits down with journalist Rhoda Metcalfe to discuss the risks associated with cryptocurrencies and why she thinks that they simply cannot deliver their claimed benefits. Transcript: https://bit.ly/3eJTuOh
Read The Superficial Allure of Crypto at IMF.org/FandD
While consumers' expectations of where prices are going are something that economists have been tracking for a long time, understanding how those expectations are formed provides valuable insight toward controlling inflation. New research by economists Carlo Pizzinelli (IMF), Peter Andre (Briq Institute), Christopher Roth (University of Cologne), and Johannes Wohlfart (University of Copenhagen) shows a surprising divide between what experts think and consumers believe drives inflation and other economic trends. Carlo Pizzinelli is the author of an article in the latest Finance and Development based on the study. In this podcast, Pizzinelli sits down with Journalist Rhoda Metcalfe to discuss how the collective consumer mind influences economic policy. Transcript: https://bit.ly/3RMPYAv
Read the study: https://bit.ly/3RrXmlb
Sanctions are not new, but they deliver bigger global shocks and are easier to avoid than at any time in history. Nicholas Mulder's latest book, The Economic Weapon, the Rise of Sanctions as a Tool of Modern War, looks at sanctions regimes of the past to better understand the implications of today's sweeping sanctions against Russia. In this podcast, Mulder says we need to think more carefully about crafting macroeconomic policy at a global level to offset the negative effects that the sanctions are having on third countries. Transcript: https://bit.ly/3wBUZnq
Read Nick Mulder's article in Finance and Development at IMF.org/fandd
Economic growth depends on several factors, but a new study (forthcoming) by Eric Hanushek and Ludger Woessmann shows nothing is more important for development than equitable education. Hanushek is a senior fellow at the Hoover Institution at Stanford University, and in this podcast, he says skill differences account for three-quarters of cross-country variations in long-term growth. Hanushek also says the global skills deficit is immense, with two-thirds or more of the world’s youth never reaching even basic skill levels. Hanushek and Woessmann are coauthors of The Basic Skills Gap published in Finance and Development where they say reaching the goal of global universal basic skills would raise future world GDP by $700 trillion over the remainder of the century.
Transcript: https://bit.ly/3AqSxCE
Read the article at IMF.org/fandd
Albert Einstein once said, "In the midst of every crisis, lies great opportunity." But while the war in Ukraine has sparked crises on several fronts, the opportunities are not all that obvious at this point. Historians can help connect those lines by looking back at how we emerged from history's darkest hours. Patricia Clavin is Professor of Modern History at Oxford University. In this podcast, journalist Rhoda Metcalfe asks Clavin what the geopolitical fallout from the war might mean for globalization. Transcript: https://bit.ly/3RdufCi
Read Patricia Clavin's article Turbulence and the Lessons of History in the June issue of Finance and Development. IMF.org/FandD
The war in Ukraine and the rise of emerging market economies have opened a new chapter in international relations, with important implications for the global economic order. Like an earthquake, the war has an epicenter, located in Russia and Ukraine, but its seismic waves are impacting economies far and wide and revealing a shift in the underlying geopolitical tectonic plates. In this podcast, IMF Chief Economist, Pierre-Olivier Gourinchas discusses what fragmentation of the global economy might mean for the dominance of the US dollar in the international monetary and financial system.
Transcript: https://bit.ly/3N4ZOei
Read the article at IMF.org/fandd
Economies grow better when they are more equal, and taxation is a powerful tool to help reduce inequalities. But increasingly, the international tax system is doing the opposite of that by allowing corporations and the world's wealthiest people to avoid paying their fair share. The Tax Justice Network estimates the combined global revenue losses from cross-border tax abuse by people with undeclared offshore assets and of multinational companies amount to some $483 billion a year. Alex Cobham is Chief Executive of the Tax Justice Network, and in this podcast, he speaks with journalist Rhoda Metcalfe about his article Taxing for a New Social Contract in Finance and Development. Transcript: https://bit.ly/3sG6rMI
Read the article at IMF.org/fandd
The pandemic has sparked an enormous upheaval in education around the world. But in India and many other low-income countries where remote learning is often not an option, children's education has simply fallen off the rails. Yamini Aiyar is President of the Centre for Policy Research in New Delhi. In this podcast, Aiyar speaks with journalist Rhoda Metcalfe about how the digital divide has pushed poor kids into an educational deficit that could reverberate for years.
Transcript: https://bit.ly/3NBfWpk
Yamini Aiyar is also the author of The Education Pandemic published in Finance and Development.
Read more about bridging learning gaps amongst children here
Governments with strong balance sheets are known to recover from shocks more quickly. Yet many of them don't have balance sheets, or even know what assets and liabilities they have. The IMF estimates these often-overlooked global public assets at twice the value of global GDP. Ian Ball is a professor at Victoria University in Wellington and behind the New Zealand government’s net worth approach to determining its fiscal position. Ball published an article in Finance and Development about the benefits of digging up all government assets, hidden or otherwise. In this podcast, he sits down with journalist Rhoda Metcalfe to discuss the advantages of this basic accounting exercise that dates back to the time of William the Conqueror.
Transcript: https://bit.ly/3CViKsI
Read the article at IMF.org/fandd
Should the rich pay more taxes than the poor? Economists and public finance practitioners have traditionally focused on economic efficiency when answering questions like that, steering clear of any moral considerations that could be seen as subjective. But recent work by evolutionary moral psychologists suggests that a more human approach to policy decisions can lead to better policies that muster broader support. Paolo Mauro is Deputy Director in the IMF Fiscal Affairs Department. In this podcast, he says considering people's moral perspectives makes policy choices more politically feasible and sustainable. Transcript: https://bit.ly/3hudH8M
When was the last time you used cash? In his latest book, Eswar Prasad looks at a world, not that far off, where using cash will no longer be an option. Prasad is a professor of economics at Cornell University, and his book, The Future of Money, describes how digital currencies and other financial technologies are reshaping everything from consumer banking to monetary policy and international payments. In this podcast, he discusses the book with Finance and Development Magazine editor Chris Wellisz. Transcript: https://bit.ly/3gwQJNu
Read the F&D article at IMF.org/fandd
Spending public funds efficiently and effectively is a challenge for governments around the world, but weak public finance management systems are holding back growth and development in Africa. Ken Opalo studies African legislatures and policymaking at Georgetown University’s School of Foreign Service. In this podcast, Opalo says public spending does not adequately reflect taxpayers' priorities in many African countries because elected officials are often left out of the budget process.
Transcript: https://bit.ly/3K0Sq3r
Much has been said and written about the dangers of government borrowing. In their new book, In Defense of Public Debt, economic historian Barry Eichengreen and his co-authors trace the evolution of sovereign debt from the wars of medieval Europe through the Covid-19 crisis, illustrating public debt's many positive uses, from reacting to financial crises to building public works. In this podcast, Eichengreen discusses the book with Finance and Development Magazine’s Chris Wellisz. Transcript: https://bit.ly/3ec6Hvj
Despite all the money and health infrastructure available to them, some of the world's richest countries have suffered higher death rates from COVID-19 than many developing countries. Jay Patel is a researcher at the Global Health Governance Program at the University of Edinburgh and has coauthored along with colleague Devi Sridhar an article about pandemic preparedness in the December issue of Finance and Development. In this podcast, Patel tells journalist Rhoda Metcalfe that regardless of their limited resources, many developing countries in Africa delivered effective containment strategies because of strong local leadership and knowledge sharing.
Transcript: https://bit.ly/33hY0xx
Read the article at IMF.org/fandd.
Pandemics pose significant macroeconomic costs but only recently have garnered the attention they deserve. In this podcast, economist Ruchir Agarwal, sits down with Peter Sands, Executive Director of the Global Fund to Fight AIDS, TB and Malaria, to discuss the role of macroeconomics in public health preparedness. Agarwal heads the IMF's Global Health and Pandemic Response Taskforce. Transcript: https://bit.ly/32KapKk
Read the F&D article at IMF.org/fandd
For all its strengths in measuring a country's economy, GDP falls short when it comes to gauging the well-being of its residents. For example, per capita GDP numbers today suggest people in the US are better off now than they were before the pandemic, regardless of the enduring social and economic upheaval. The recognition that GDP cannot encompass many dimensions of well-being has prompted a search for measures that reflect a more complete account of what people care about. Miles Kimball is a Professor at the University of Colorado, Boulder, and is developing the principles for a national well-being index. In this podcast, Kimball says the index would also serve to grade governments. Transcript: https://bit.ly/3lfnD8c
Read the F&D article at IMF.org/fandd