A sudden decline in low-skilled immigrant workers in 2020 increased the exit of manufacturing firms in Korea and decreased wages of Korean workers, from Jongkwan Lee, Giovanni Peri, and Hee-Seung Yang www.nber.org/papers/w34927

Few think that the world’s next trillion-dollar tech company will be European. But, perhaps for the first time, that does not seem a silly idea econ.st/3PlThCL Illustration: Tyler Comrie

New Acemoglu et al. NBER paper: agentic #AI helps individual decisions but erodes the collective knowledge they depend on. A key policy takeaway, in my view: invest in public knowledge infrastructure and the people who maintain it. Link to full paper: www.nber.org/papers/w34910

Künstliche Intelligenz beschleunigt den Informationskrieg. Anthropic verliert und triumphiert zugleich. Und: Meta-Brille gibt intime Aufnahmen weiter. Der KI-Newsletter

The AI PR problem ft.trib.al/7O8Qm8Z | opinion

The reality of chatbot-induced delusions ft.trib.al/0ClrvCd | opinion

Can economic policy make life more affordable? Join us next Wednesday for a special seminar with @jaredb-econ.bsky.social, @lauradtyson.bsky.social, @jrothst.bsky.social and Michael Reich. Event details: irle.berkeley.edu/event/can-ec...

What do we know about AI’s impact on the labor market? On March 10, Peter Orszag, @jedkolko.bsky.social, @marthagimbel.bsky.social, Bharat Chandar, and @bencasselman.bsky.social will dive into the data and what we know:

This is making the simple obvious point that some tasks are Leontief. As I keep saying: we all become validators/arbitrators providing such services. But: task expansion happens, firm boundaries evolve, expect an SME revolution -- more diversity, more "brands", more variety. Context:

This is an excellent piece discussing AI's impact on biorisk, offering a great distillation of key topics. Definitely worth a read! (And I'm not surprised it's great, given that @csetgeorgetown.bsky.social's own @stephbatalis.bsky.social is quoted!) www.transformernews.ai/p/ai-biorisk...

India has long provided a work force to do office tasks more cheaply than in the U.S. or Europe. Now, A.I. threatens to do to India what its outsourcing model did to the rest of the world: replace hundreds of thousands of office workers. The country is racing to adapt before it’s too late.

Daron @DAcemogluMIT uses his language and authority to weigh in pointing out to the possibility of a breakdown of knowledge transmission and the reduction of the stock of skill as consequence of AI. In some societies, this has already happened in the world of "physical skills"...

A report that described what would happen if A.I. upends white-collar work and the U.S. economy — saying well-paid professionals would be forced to become Uber drivers and miss mortgage payments — was cited as one factor fueling a decline in the S&P 500 on Monday.

What is the current state of U.S. AI training efforts? What can policymakers and educators do to make them better? Join us on March 10 to explore answers to these questions and more at our 2026 Spring Symposium featuring @bluntrochester.senate.gov! cset.georgetown.edu/event/future...

The Economics for Inclusive Prosperity podcast series continues with Max Kasy, on how democracies can rescue AI from tech titans. inclusive-prosperity.simplecast.com

Fewer than 1% of organizations have fully implemented responsible AI. Yet, the business case in favour of AI governance is straightforward: governance improves data quality, strengthens decision-making, and builds the institutional trust needed to deploy AI at scale. www.weforum.org/stories/2026...

U.S. AI companies are expected to spend $650 billion on capital investments this year, mostly in the form of data center infrastructure. Adam Tooze breaks down how this will affect the wider economy.

Studying whether low-economic-mobility neighborhoods can be transformed into high-mobility areas through the HOPE VI program, which invested billions to distressed public housing developments, from Chetty, Diamond, Foster, @lkatz42.bsky.social, Porter, Staiger, and Tach www.nber.org/papers/w34720

Exchange rate pass through (as the dollar falls), and tariff pass through (as they reach record highs) #EconSky econbrowser.com/archives/202...

OpenClaw (aka Moltbot) may have gone completely viral, but it is also a disaster waiting to happen. A PSA for why you should steer clear. open.substack.com/pub/garymarc...

Nachdenklicher Sonntag. Erich Käster: Ich bin die Zeit

The observed decline in labor’s share of corporate output, in conjunction with relatively weak corporate investment, generates a persistent rise in the ratio of corporate valuation relative to corporate earnings, from Andrew Atkeson, Jonathan Heathcote, and Fabrizio Perri www.nber.org/papers/w34748

When Dani Rodrik was a guest on my old podcast (PolicyCast), he said "neoliberalism is just bad economics." I got to circle back to that in depth with Princeton U economist Atif Mian in the latest episode of Economics for Inclusive Prosperity. podcasts.apple.com/us/podcast/e...

Apple buys Israeli start-up Q.AI as it races Meta and Google on AI devices ft.trib.al/BWZOst8

Using a comprehensive dataset of posts from a major platform for anime- and manga-style artwork to study the impact of the launch of a prominent text-to-image generative AI, from Sueyoul Kim, Ginger Zhe Jin, and Eungik Lee www.nber.org/papers/w34733

China lags behind US at AI frontier but could quickly catch up, say experts

"Affordability, Antitrust, and Inequality" -- Register now for the free in-person and livestream event with Lina Khan and @pkrugman.bsky.social. March 9, 6:30 pm, at @thegraduatecenter.bsky.social. stonecenter.gc.cuny.edu/event/afford...

Claude Code and other AI agents are making strides at automating coding. What are the chances that future generations of AI automate more and more of the AI R&D cycle, leading to a recursive self-improving loop? Our latest report investigates ⬇️ cset.georgetown.edu/publication/...

New evidence on AI and work challenges the usual “automation vs. augmentation” framing. Both forces happen within the same jobs. The main issue appears to be rapid job transformation, and whether workers and institutions can adapt in time. www.burningglassinstitute.org/research/bey...

📢now forthcoming in ECMA! The Class Gap in Career Progression: Evidence from US Academia Class is rarely a focus of research or DEI in elite US occupations. Evidence suggests it should be: we find a large class gap in at least one occupation - tenure-track academia...🧵

Record number of people in UK live in ‘very deep poverty’, analysis shows

UPDATE: Metro Rail & Bus service will be suspended at midnight tonight. Tomorrow, rail will run on a Sun schedule. Bus service will start at 6AM with plans to increase routes as road conditions permit. Metro Access will reopen at 8AM for all trips. ➡️ wmata.com/about/news/M...

Americans are deeply pessimistic about their economic future, driven by financial anxiety among all but the oldest Americans and by a widespread belief that a middle-class lifestyle is out of reach for most people, a New York Times/Siena poll found. nyti.ms/4bljYk7

The number of U.S. flights canceled on Sunday reached levels not seen since the early days of the Covid-19 pandemic as a winter storm blanketed much of the country, data shows.

Die USA bereiten sich auf einen der schwersten Winterstürme seit Jahren vor, mehrere Gouverneure haben den Notstand ausgerufen. Präsident Trump nutzt die Gelegenheit, um die Klimakrise zu leugnen.

Als Datenwissenschaftlerin befasst sich @hannahritchie.bsky.social mit der Energiewende. Sie ist zuversichtlich – denn trotz Negativmeldungen verbessert sich die Lage auf globaler Ebene.

This is not your average winter storm! The storm is likely to fall into “the echelon of unusually impactful storms,” said Alex Lamers, a meteorologist with the Weather Prediction Center. @nytimes.com @alexlamers.bsky.social

A large storm system is expected to hit this weekend, with snow and ice from Texas to the Carolinas and up the Eastern seaboard. The winter system could bring more than a foot of snow. n.pr/4bckcKu

Nice post that highlights that while there has been a substantial reduction in wage inequality since 2019, the reduction is substantially smaller than the rise in wage inequality since the early 1980s. Perspective is important.

Handel mit Südamerika - Mercosur-Abkommen wird unterzeichnet - Mehr unter https://www.deutschlandfunk.de/mercosur-abkommen-freihandel-pro-contra-agrar-100.html #wirtschaft #deutschlandfunk #handel #börse #markt

Dani Rodrik and Suresh Naidu say economists need to adopt a broader view of prosperity, one that includes metrics of wellbeing like access to health, democratic participation, and a livable planet. Listen to the new Economics for Inclusive Prosperity podcast. #EfiP podcasts.apple.com/us/podcast/e...

Five minutes more exercise and 30 minutes less sitting could help millions live longer

Share of London homes sold at a loss higher than anywhere else in England and Wales ft.trib.al/Qrgweoo

Der FC Barcelona gewinnt den spanischen Supercup! 🏆 Mit einem 3:2 setzte sich die Mannschaft von Hansi Flick gegen Real Madrid durch. Die Tore für Barca erzielten Raphinha (2) und Robert Lewandowski. Für die Alonso-Elf trafen Vini Jr. und Gonzalo… #sport1 #sport1news #realmadrid #barca #elclasico

"AFFORDABILITY ANGST" I wrote this week's @economist.com cover story, on affordability in America Politically, "affordability" is a potent slogan. But on the economics, the issue is mostly a mirage—real wages have risen handsomely. That mismatch spells trouble Thread and link ⬇️

#Europe’s AI growth dividend isn’t automatic. This IMF analysis estimates that #AI could raise EU #productivity by ~1% over five years without reforms. Bigger gains require deeper single markets, stronger capital markets, flexible regulation, worker reskilling, and affordable energy.

Promising results from a new A.I. tool for spotting pancreatic cancer in routine CT scans are another example of how China is racing to apply the tech to medicine’s tough problems.

What is the intersection of machine learning, causal inference, and economics? What are promising avenues for research at this intersection? I just drafted a new talk exploring these questions: maxkasy.github.io/home/files/s... Thoughts and comments welcome!

Expectations around generative AI are being scaled back. This article argues that many corporate AI deployments have yet to deliver clear business value, prompting a reassessment of AI’s real capabilities and limits: www.technologyreview.com/2025/12/15/1...

U.S. inflation unexpectedly slowed in November, rising 2.7% from a year ago, in a report likely distorted by the government shutdown.