The Capitalism and Freedom in the Twenty-First Century Podcast

In this conversation, Steven Davis, a distinguished economist from the Hoover Institution, sheds light on his extensive research into job flows and his renowned book on job creation. He emphasizes the evolving definitions of full employment and critiques traditional views on job growth. The discussion turns to the significant impact of economic policy uncertainty on market dynamics. Finally, Davis explores the transformative effects of remote work on the labor market and its vulnerability to automation, all while considering future implications for the economy.

Bob Litterman, a pivotal figure in quantitative finance and former partner at Goldman Sachs, shares insights on the evolution of risk management and investing strategies. He discusses the carry trade liquidity crisis of 2024, drawing parallels with the 2007 quant crisis. Litterman advocates for the importance of carbon taxes and introduces his E-Z climate carbon pricing model to combat climate risks. The conversation delves into navigating market volatility and the significance of understanding crowded trades in quantitative investing.

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.

Daron Acemoglu, an MIT economics professor renowned for his insights on institutions and economic growth, discusses the intricate relationship between regulation and growth. He delves into the significance of inclusive versus extractive institutions, using North and South Korea as examples. Acemoglu explores how democracy can enhance economic performance, debates shareholder profit maximization, and examines the impact of AI on labor markets. He also highlights the power dynamics in tech firms and analyzes the varying economic trajectories of advanced economies.

Jon Hartley and John Cochrane introduce the Capitalism and Freedom in the 21st Century podcast to the Hoover audience. They speak on a number of topics including the usefulness of existing macroeconomic models, the use of economic models at central banks, the state of macroeconomics, the fiscal theory of the price level, and how technology, institutions, and policy play a role in fostering economic growth. ABOUT THE SPEAKERS: John H. Cochrane is the Rose-Marie and Jack Anderson Senior Fellow at the Hoover Institution. He is also a research associate of the National Bureau of Economic Research and an adjunct scholar of the CATO Institute.  Before joining Hoover, Cochrane was  a Professor of Finance at the University of Chicago’s Booth School of Business, and earlier at its Economics Department. Cochrane earned a bachelor’s degree in physics at MIT and his PhD in economics at the University of California at Berkeley. He was a junior staff economist on the Council of Economic Advisers (1982–83). Cochrane’s recent publications include the book The Fiscal Theory of the Price Level (Princeton University Press, 2023). He also refularly writes  articles on inflation, dynamics in stock and bond markets, the volatility of exchange rates, the term structure of interest rates, the returns to venture capital, liquidity premiums in stock prices, the relation between stock prices and business cycles, and option pricing when investors can’t perfectly hedge. His monetary economics publications include articles on the relationship between deficits and inflation, the effects of monetary policy, and the fiscal theory of the price level. He has also written articles on macroeconomics, health insurance, time-series econometrics, financial regulation, and other topics. He was a coauthor of The Squam Lake Report. His Asset Pricing PhD class is available online via Coursera.  Cochrane frequently contributes editorial opinion essays to the Wall Street Journal, Bloomberg.com, and other publications. He maintains the Grumpy Economist blog and is a regular host of Hoover’s flagship broadcast, GoodFellows. Jon Hartley is a Research Associate at the Hoover Institution and an economics PhD Candidate at Stanford University, where he specializes in finance, labor economics, and macroeconomics. He is also currently a Research Fellow at the Foundation for Research on Equal Opportunity (FREOPP) and a Senior Fellow at the Macdonald-Laurier Institute. Jon is also a member of the Canadian Group of Economists, and serves as chair of the Economic Club of Miami. Jon has previously worked at Goldman Sachs Asset Management as well as in various policy roles at the World Bank, IMF, Committee on Capital Markets Regulation, US Congress Joint Economic Committee, the Federal Reserve Bank of New York, the Federal Reserve Bank of Chicago, and the Bank of Canada. Jon has also been a regular economics contributor for National Review Online, Forbes, and The Huffington Post and has contributed to The Wall Street Journal, The New York Times, USA Today, Globe and Mail, National Post, and Toronto Star among other outlets. Jon has also appeared on CNBC, Fox Business, Fox News, Bloomberg, and NBC, and was named to the 2017 Forbes 30 Under 30 Law & Policy list, the 2017 Wharton 40 Under 40 list, and was previously a World Economic Forum Global Shaper. RELATED RESOURCES: The Fiscal Theory of the Price Level Reforming the Euro: Lessons From Four Crises ABOUT THE SERIES: Each episode of Capitalism and Freedom in the 21st Century, a video podcast series and the official podcast of the Hoover Economic Policy Working Group, focuses on getting into the weeds of economics, finance, and public policy on important current topics through one-on-one interviews. Host Jon Hartley asks guests about their main ideas and contributions to academic research and policy. The podcast is titled after Milton Friedman‘s famous 1962 bestselling book Capitalism and Freedom, which after 60 years, remains prescient from its focus on various topics which are now at the forefront of economic debates, such as monetary policy and inflation, fiscal policy, occupational licensing, education vouchers, income share agreements, the distribution of income, and negative income taxes, among many other topics.

Peter Ireland, a leading monetary economist and Boston College professor, dives deep into the evolution of monetarism and New Keynesian models. He discusses the influences of empirical macroeconomics and the Phillips curve's challenges in today’s economic landscape. Peter also explores why quantitative easing fell short in boosting inflation post-2008, alongside debates on why central banks should track monetary aggregates. He shares insights from his experience with the Shadow Open Market Committee, celebrating its 50-year mission of advocating for sound monetary policy.

Harvard Economics Professor Dani Rodrik discusses industrial policy, globalization, and his career. He challenges consensus on globalization, advocates for industrial policy blending, and explores revitalizing industrial policies. The podcast also delves into economic nationalism, political equilibrium, China's growth, and the US presidential election impact.

Join the podcast to hear Steven D. Levitt discuss his career, transition to academia, and decision to retire. Explore his impact on applied microeconomics, data-driven research, and the evolution of academic economics at UChicago. Reflect on golf, retirement, and the future of economics, as well as insights into teaching, educational reform, and pandemic project challenges.

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.

Doug Ducey, 23rd Governor of Arizona, joins the podcast to discuss how he made Arizona the first state to pass Universal School Choice and Universal Licensing Recognition as well as his major influences and career which includes growing Coldstone Creamery into an international company as CEO. Jon Hartley is an economics researcher with interests in international macroeconomics, finance, and labor economics and is currently an economics PhD student at Stanford University. He is also currently a Research Fellow at the Foundation for Research on Equal Opportunity, a Senior Fellow at the Macdonald-Laurier Institute, and a research associate at the Hoover Institution. Learn more about your ad choices. Visit megaphone.fm/adchoices