It’s hard to know sometimes which is the greater threat to prosperity -- headlong technological progress that’s destroying decent jobs and hollowing out the middle class, or fading technological progress that’s causing persistently slow growth. With a little ingenuity, you could no doubt combine these ideas and worry that technological progress is both too fast and too slow.
Robert C. Merton , winner of the 1997 Nobel Prize in economics, said he will rejoin the faculty of the Massachusetts of Institute of Technology’s Sloan School of Management to focus on training students in quantitative finance.
In a major speech last week, Treasury Secretary Jack Lew argued that we need to keep pushing forward with financial reform. He made some encouraging points about the need to reduce systemic risks arising from money-market mutual funds and for appropriate funding levels at the Securities and Exchange Commission and the Commodity Futures Trading Commission, and he spoke clearly about the need for accountability of regulators and of bank executives. But a huge misconception in his remarks threatens to swamp everything.
There are growing concerns that the regulatory bodies overseeing the financial sector are incapable of understanding, preventing or even properly investigating excessive risk taking that threatens to ruin the economy.
Who was more wrong in the run-up to the financial crisis of 2008: the Federal Reserve or Moody’s Investors Service? This isn’t an academic question; both organizations are still hugely relevant to shaping the way we see our financial system and the risks it contains. And both are now apparently underestimating the dangers again.
June 28 (Bloomberg) -- MIT Sloan School of Management Professors and authors of the Book "Race Against the Machine" Erik Brynjolfsson and Andrew McAfee talk with Matt Miller about the digitization of the economy and how robots are replacing humans in the workforce at a rate never seen before. (Source: Bloomberg)
Aug. 15 (Bloomberg) -- Pension Partners' Ed Dempsey and MIT Sloan School of Management's Andrew McAfee speak with Bloomberg's Matt Miller about the concerns that keep them up at night as investors. They speak on Bloomberg Television's "Bloomberg Rewind." (Source: Bloomberg)