Lawrence H. Summers, former US Treasury Secretary, discusses the alarmingly high VIX and potential SEC responses. David Bianco, CIO of DWS Americas, sees volatility as overreaction from investors. Harvard's Greg Mankiw warns about negative legacies for future generations. Michèle Flournoy highlights the intensifying AI arms race, while Jack Hidary, CEO of SandboxAQ, argues for sophisticated quantitative AI models to benefit the economy. The conversation navigates market volatility, fiscal policies, and innovation in defense strategies against geopolitical tensions.

Greg Mankiw, a Harvard economics professor and former White House economic advisor under President George W. Bush, shares insights into New Keynesian economics. He discusses the evolution of economic modeling, highlighting both its benefits and limitations. Mankiw delves into growth accounting and the challenges of existing growth theories. The conversation also touches on the changing role of economists in Washington and Mankiw's advocacy for effective climate policies like carbon taxes, emphasizing the need for greater economic literacy.