Articles
Articles and analyses from the INET community on the key economic questions of our time.
The AI Bubble and the U.S. Economy: How Long Do “Hallucinations” Last?
This paper argues that (i) we have reached “peak GenAI” in terms of current Large Language Models (LLMs); scaling (building more data centers and using more chips) will not take us further to the goal of “Artificial General Intelligence” (AGI); returns are diminishing rapidly; (ii) the AI-LLM industry and the larger U.S. economy are experiencing a speculative bubble, which is about to burst.
Accounting for Ourselves: What Fedwire Tells Us About Fed Losses, Cost Recovery, and Risk
Without transparent accounting practices and proper risk management, the Federal Reserve’s current financial losses—unprecedented in scale—and the questionable accounting practices it uses to downplay their impact threaten public trust, economic stability, and the integrity of fiscal policy.
Can States Reinvent U.S. Healthcare? This Expert Thinks So.
Phillip Alvelda, a former DARPA program manager, reveals how a fracturing federal system has opened the door for bold state leadership. Will blue states rise to build a healthier, more just future?
Steering AI to Enhance Jobs and Prepare for Future Transformation
How to guide innovative AI efforts to increase labor demand and create better-paying jobs?
Wage Stagnation and Populism: A Comment on David Brooks and Noah Smith
Times have changed. Now we have David Brooks, of The New York Times, and economics blogger Noah Smith defending neoliberal globalization from the pincer movement of anti-trade populists from both the right and the left.
Trade in the Time of Trump
Trump ran in both 2016 and 2024 on a promise to reverse the deindustrialization caused by globalization and free trade, using tariffs as his main tool. But the critical question now is: Can it work?
Explosive New Book Argues Facebook Is a Global Engine of Harm and Corruption. Is Reform Possible?
Sara Wynn-Williams, defying Facebook’s attempts to silence her, reveals the company’s toxic culture and global damage, exposing unethical practices and a profit-at-any-cost approach. The key question she leaves us with: How can this be changed?
How Diversity and Pluralism Build Knowledge: The Case of Economics
If there is no universally accepted outside authority to tell us how to judge theories then knowledge is only going to progress by means of debate
The Origins of the Modern Era of the Federal Reserve
Fifty years ago the actions of the Federal Reserve mattered. Today, so far as the aggregate measures of the American domestic economy go, they do not.
Time to Stop Rolling Dice: Why Bigger is Better in Climate Investments
Earlier investments make large-scale emission reductions easier to do over time because their unit costs drop