In this podcast episode, the hosts explore the changing landscape of economics, with a focus on the implications of the 2024 Nobel Prize in Economics and the trend toward research that can be empirically verified. They compare traditional macroeconomic theories with modern microeconomic studies that have a direct societal impact, including those related to AI and institutional structures. The discussion around "Why Nations Fail" emphasizes the vital role of institutions in driving economic success while addressing the challenges of empirical validation. The hosts also examine the opportunities and obstacles posed by AI in the economy, urging against a simplistic view that sees only job displacement. They advocate for a balanced perspective that prioritizes rigorous, data-driven research for effective economic policymaking.
