The Capitalism and Freedom in the Twenty-First Century Podcast Larry Summers (Harvard Economics Professor) on His Career In Academic Economics, Government, University Leadership and Corporate America
Feb 2, 2024
Larry Summers, a Harvard economics professor and former US Treasury Secretary, dives into his remarkable career in this discussion. He navigates the complexities of balancing truth and social justice in academia amidst current controversies. He shares insights on transitioning from physics to economics, emphasizing the importance of empirical methods and government intervention. Summers critically evaluates economic policy lessons learned from crises like the Great Recession and COVID-19, advocating for responsive, comprehensive policymaking to strengthen economic outcomes.
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Larry's Academic Shift to Economics
- Larry Summers originally studied physics and mathematics at MIT but shifted to economics after realizing he wasn't world-class in those fields.
- His orientation to analytical work and public policy led him naturally into economics.
Summers' Keynesian Framework
- Summers identifies strongly with Keynesian economics, focusing on full employment and financial market mediation of business cycles.
- He values empirical evidence mixed with broad analysis, viewing economic crises akin to a human fever needing careful interpretation.
Mathy Macro: Division of Labor
- Summers views the increase in mathematical complexity in macroeconomics as a division of labor, separating conceptual work from near-term policy advice.
- He expresses skepticism about the extensive elaboration of New Keynesian models being especially enlightening for practical policy.