Writes Angus Deaton: I see students who want to relieve suffering in the world. Should they go to Dhaka or Dakar? Focus on bed nets or worms? I tell them to go to Washington or London and to work to stop the harm that rich countries do…” (from an article in the Boston Review.
Here is John Cassidy’s level-headed take on Princeton University’s latest Nobel Prize winner, economist Deaton, published in the current New Yorker. He quotes Deaton as questioning the widespread presumption that rising inequality is always a bad thing. In developing countries, he wrote, “inequality is often a consequence of progress.”
Nobel Prize winner in economics Christopher Sims will speak at Princeton Regional Chamber’s Economic Summit on Thursday, February 27, at 1 p.m. He shared the 2011 prize with Thomas J. Sargent for “empirical research on cause and effect in the macroeconomy.” Chamber members can register for $75 for the afternoon, which also includes economic updates and panel discussions, plus munchies and music — all at MCCC’s Conference Center.
Sims (and I am quoting from Wikipedia) confirmed the theories of monetarists like Milton Friedman that shifts in the money supply affect inflation. However, he also showed that causality went both ways. Variables like interest rates and inflation also led to changes in the money supply.[10