By Abhijit V. Banerjee, Esther Duflo
Evidence-based economic solutions for global challenges
Subject
Themes
Economics has fallen out of favour with the public. Trust in economists ranks barely above that of politicians, whilst polarisation intensifies across democracies. Yet the challenges societies face (migration, trade, inequality, climate change) demand rigorous economic thinking, not reflexive ideology or simplified slogans. This work argues that good economics, properly understood, offers pathways through seemingly intractable problems.
Economics has fallen out of favour with the public. Trust in economists ranks barely above that of politicians, whilst polarisation intensifies across democracies. Yet the challenges societies face (migration, trade, inequality, climate change) demand rigorous economic thinking, not reflexive…
"Good Economics for Hard Times" emerged during a period of intense political and economic upheaval challenging established paradigms. Published in 2019, the work addresses rising populism, trade wars, technological anxiety, and climate crisis whilst western democracies grapple with slow growth,…
International migration drives political upheaval across wealthy democracies, yet the actual scale of migration remains remarkably stable. In 2017, migrants constituted 3 percent of global population, identical to proportions in 1960 and 1990. The European Union receives between 1.5 and 2.5 million…
Free trade ranks among economics' oldest and most cherished propositions. David Ricardo demonstrated in 1817 that countries should specialise according to comparative advantage rather than absolute advantage. Even if one nation excels at producing everything, it cannot dominate all markets…
Economic growth occupies a sacred place in policy discourse, yet its measurement and meaning deserve scrutiny. Gross Domestic Product (GDP) growth became the dominant metric of national success during the postwar boom, when Western economies experienced unprecedented expansion. However, GDP measures…
Climate change represents humanity's most pressing collective action problem, yet economic frameworks for addressing it remain contested and inadequate. The scale of required transformation challenges fundamental assumptions about markets, growth, and policy design. Standard cost-benefit analysis…
Technological change, particularly automation and artificial intelligence, dominates contemporary anxieties about employment and inequality. Predictions of mass joblessness from robots and algorithms fuel demands for radical policy responses including Universal Basic Income. However, the…
Political polarisation has reached alarming levels across democracies, with substantive policy debates replaced by tribal identity conflicts. In the United States, split-ticket voting hits historic lows whilst majority partisans view opponents as racists, spiteful, or morally deficient. Similar…
Migration generates intense political controversy despite evidence contradicting popular fears. The gap between perception and reality shapes restrictive policies that harm both migrants and destination countries. Understanding why people move, what prevents movement, and migration's actual effects…
International trade generates fierce political controversy despite economists' traditional enthusiasm. The gap between theory's optimistic predictions and trade's messy reality fuels protectionist sentiment and undermines faith in economic expertise. Understanding why trade delivers less than…
Preferences shape economic outcomes, yet standard economics treats tastes as given and unchangeable. This assumption oversimplifies reality where preferences emerge from social context, discrimination perpetuates inequality, and identity politics fragment societies. Understanding how preferences…
Economic growth obsesses policy makers despite weakening relationships between GDP expansion and improved well-being. Slow growth plagues wealthy nations whilst development strategies in poor countries chase elusive miracles. Understanding growth's drivers, limits, and alternatives becomes urgent as…
Climate change represents an existential threat demanding urgent action, yet economic and political obstacles delay meaningful responses. Understanding barriers to climate policy reveals both the scale of the challenge and potential pathways forward through carbon pricing, green investment, and…
Automation and artificial intelligence spark fears of mass unemployment, yet the relationship between technology and work proves more complex than either utopian or dystopian predictions suggest. Understanding how technological change affects labour markets reveals both genuine challenges and…
Government effectiveness determines whether ambitious policies can actually deliver promised benefits. Understanding what makes governments succeed or fail reveals both capacity challenges and paths toward institutional improvement necessary for addressing contemporary crises. Populist movements…
Social safety nets protecting vulnerable populations face ongoing debates about design, adequacy, and effects on behaviour. Understanding how different approaches affect recipients reveals possibilities for strengthening support whilst maintaining dignity and opportunity. Universal Basic Income…
By Abhijit V. Banerjee, Esther Duflo
Subject
Themes
Economics has fallen out of favour with the public. Trust in economists ranks barely above that of politicians, whilst polarisation intensifies across democracies. Yet the challenges societies face (migration, trade, inequality, climate change) demand rigorous economic thinking, not reflexive ideology or simplified slogans. This work argues that good economics, properly understood, offers pathways through seemingly intractable problems.