Planet Money cover image

Planet Money

The quest to save macroeconomics from itself

Jul 7, 2023
18:53

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Emmy Nakamura is a pioneer in the field of empirical macroeconomics, using actual data to untangle mysteries and find satisfying answers in the field.
  • Nakamura's research on how companies set prices reveals that the 'invisible hand' doesn't always ensure efficient price adjustments, raising questions about policy interventions and macroeconomic stability.

Deep dives

The Rise of Empirical Macroeconomics

Emmy Nakamura, a professor at UC Berkeley, is at the forefront of empirical macroeconomics, a branch of economics focused on using actual data to answer big questions about the economy. Unlike traditional macroeconomics, which relies heavily on theories, empirical macroeconomists like Nakamura are searching for clues in real data to settle long-standing economic debates. This shift towards empirical analysis is driven by the recognition that the macroeconomic environment is continually changing, and historical data alone is insufficient to make accurate predictions. By studying actual data and patterns, Nakamura aims to bring more clarity and understanding to the field of macroeconomics.

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