Jesús Fernández-Villaverde, a renowned macro-economist, dives into the critical connection between low fertility rates and economic growth. He discusses the stark implications of Japan's demographic challenges, demographic shifts in aging populations, and their effects on pensions. The conversation also touches on the complexities surrounding technological advancements, like AI, and their impact on productivity. Fernández-Villaverde examines how societal changes affect women’s roles in the workforce and emphasizes the need for family-friendly policies to foster a supportive environment.

Jesus Fernández-Villaverde, a renowned Economics Professor at UPenn and director at Penn's Institute for the Study of Markets, dives into pressing economic themes with host Jon Hartley. They tackle the alarming decline in fertility rates and how this impacts global GDP growth, particularly in Japan. Fernández-Villaverde discusses the evolution of economic models, illustrating the differences between DSGE and VAR approaches. They also explore the complexities of macroeconomic theory, including the challenges of recessions and the critical role of institutions and economic education.