The Pie: An Economics Podcast

Douglas Diamond, a Nobel Prize-winning economist and finance professor at the University of Chicago Booth School, delves into the intricacies of banking and financial crises. He reveals how bank runs are often self-fulfilling prophecies, fueled by short-term debt's risks. Diamond shares his first-hand experience advising on the 2008 financial crisis and critiques the regulatory reforms that missed critical warning signs. He even likens the 30-year mortgage to Michael Corleone, cautioning that good ideas can go awry when they're poorly managed.

Steven Durlauf, a distinguished professor at the Harris School of Public Policy, dives into the importance of parental income timing on intergenerational mobility. He reveals that income during adolescence (ages 12-18) is a stronger predictor of adult success than early childhood income. Durlauf explores how family structure, including marital status and single-parenthood, affects income outcomes. He also discusses the significance of socioeconomic environments, proposing policy changes to combat segregation and improve mobility for future generations.

Hyuk-Soo Kwon, an industrial policy expert, shares insights on electric vehicle subsidies and their design challenges. Eduardo Montero analyzes how Seventh-day Adventist churches navigate the tension between faith and local economies in Africa. Virginia Minni reveals how a one-day purpose workshop can significantly enhance workplace productivity. Leo Bursztyn discusses the intriguing stigma created by iMessage's green and blue text bubbles, illustrating how design influences consumer behavior and market power. Tune in for enlightening discussions!

Roger Myerson, a Nobel Prize-winning economist and University of Chicago professor, dives into the fascinating interplay of economics and democracy. He discusses how local governance supports national stability and highlights Ukraine's decentralization as a case study in effective local leadership during conflict. Myerson also shares insights on mechanism design, auction theory, and the influence of ancient political thought on modern economics. With a playful nod to harmonica tuning, he encourages researchers to focus on intuition and real-world problems.

Ariel Kalil, a Professor of Public Policy at the University of Chicago, shares her groundbreaking insights on enhancing early childhood language development. She explores how socioeconomic gaps in language skills impact children and introduces Chat2Learn, a tool that sends playful, open-ended conversation prompts to parents. Ariel highlights the magic of everyday talk, the limits of traditional reading interventions, and the importance of fostering curiosity through richer parent-child interactions. Her innovative approach promises to make a real difference in childhood education.

Pablo Peña, an economist from the University of Chicago and author of Human Capital for Humans, explores the surprising intersections of economics and everyday life. He argues that love is a key driver of economic growth and shares insights on how human capital theory applies to parenting, marriage, and health. Peña emphasizes the importance of parental investment in children and discusses the nuances of altruism versus market behavior. He also touches on how societal changes, like women's workforce entry, reshape economic dynamics in the modern world.

Deirdre McCloskey, an esteemed economist and author of the Bourgeois Trilogy, delves into how the 'equality of permission' revolutionized global income from $2 to $50 per day. She champions the 'bourgeois deal' that celebrates individual creativity and critiques modern economics for oversimplifying human nature. McCloskey contrasts the innovation paths of England and France, advocates for 'humanomics' to incorporate ethics and rhetoric, and discusses the potential of India’s liberalization while warning against statist solutions that stifle growth.

Robert Shimer and John List, both esteemed economists from the University of Chicago, discuss their initiative, Economics for Everyone, designed to teach economic reasoning without complex mathematics. They explore innovative teaching methods, using real-world experiments and storytelling to demystify economic concepts. The duo emphasizes the relevance of critical thinking in both everyday decisions and public policy, advocating for wider economic literacy to influence issues from market fairness to policy evaluation. Their approach aims to make economics accessible and engaging for all.

In this engaging discussion, Michael Greenstone, an economist and director at the University of Chicago's Institute for Climate and Sustainable Growth, teams up with Pedram Hassanzadeh, a researcher specializing in AI and weather. They dive into the benefits of AI in creating personalized weather forecasts, particularly for smallholder farmers facing climate challenges. The conversation highlights how modern AI outperforms traditional models, and how accessible forecasting can empower farmers, helping them adapt to climate realities and make informed planting decisions.

Daryl Fairweather, Chief Economist at Redfin and the first Black woman to earn a PhD from UChicago's Economics Department, shares her economic 'cheat codes' for thriving in work and life. She emphasizes understanding negotiation from the other side, leveraging inside and outside options. Daryl explains the importance of perspective in decision-making and offers tips on avoiding biases. With insights on promotions, housing shortages, and personal values, she encourages listeners to align their pursuits with their true interests.