Writing for The Los Angeles Times, Prof. Simon Johnson outlines how regulation and supervision of the banking industry should be strengthened following the collapse of Silicon Valley Bank. “A well-regulated system is still the right goal,” writes Johnson. “The Federal Reserve needs to overhaul and improve its bank supervision — and to make that consistent with its macroeconomic policy for interest rates.”
Prof. Emeritus Peter Diamond speaks with Boston Globe reporter Scot Lehigh about the future of Social Security. “Given the large past differences in the approaches of the two parties, it is important that citizens press members of Congress to be specific about their views on fixing the program,” says Diamond. “And it’s just as important that voters let their members of Congress know their own views.”
A new report co-authored by MIT researchers finds that the “US lead in advanced computing has declined significantly over the past five years—especially when measured against China,” writes Will Knight for Wired. The report’s authors emphasize that the US “needs to make sure that the CHIPS Act spending reflects the importance of developing novel ideas in advanced computing, as opposed to just propping up existing technologies,” Knight notes.
Prof. Emeritus Olivier Blanchard speaks with New York Times opinion writer Peter Coy about the U.S. policy towards federal debt. “Blanchard pointed out in the [his] book that if the interest rate the government pays on its debt is lower than the economy’s growth rate, the existing stock of debt will feel lighter over time because it will shrink as a share of gross domestic product even if the government isn’t running surpluses,” writes Coy.
In an article for The Hill, Vincent Quan, co-executive director of J-PAL North America, outlines how new governors should rely on evidence when investing in government programs. “Governors should invest in programs that are most likely to improve the lives of their constituents,” writes Quan. “However, determining which programs work and which do not is far easier said than done. Not all programs work as intended.”
Alex Padilla ’94 has become the first Latino from California to be sworn into a full Senate term, reports Rafael Bernal for The Hill.
Writing for The Hill, President L. Rafael Reif emphasizes the importance of “enabling universities to undertake the use-inspired research that will seed future innovations.” He adds: “To secure national leadership and prosperity over time, the U.S. needs to be the birthplace of the new ideas that will determine the future — including the future of semiconductor technology, design, and manufacturing.”
Prof. Jonathan Gruber speaks with GBH hosts Jim Braude and Margery Eagan about why Democrats are pushing to raise the debt ceiling. “This is really about paying off the money that Congress approved to spend for all of the things the government does,” says Gruber.
Democratic Senator Alex Padilla ’94 has become the first Latino elected to represent California in the U.S. Senate, reports Seema Mehta, Hannah Fry and Terry Castleman for The Los Angeles Times. Padilla “graduated from MIT and returned home to work in engineering. But his career plans changed because of his outrage over Proposition 187, the successful 1994 ballot measure that sought to deny many taxpayer-funded services to immigrants in the country illegally.”
Prof. Christopher Knittel speaks with Wall Street Journal reporter Andrew Duehren about how European governments are beginning to experiment with new ways to control energy prices.“Especially with the European energy-market policy interventions, what policy makers do not want to do is exacerbate these problems with their policies, and my fear is that is what these proposals would do,” says Knittel.
At MIT’s AI Policy Forum Summit, which was focused on exploring the challenges facing the implementation of AI technologies across a variety of sectors, SEC Chair Gary Gensler and MIT Schwarzman College of Computing Dean Daniel Huttenlocher discussed the impact of AI on the world of finance. “If someone is relying on open-AI, that's a concentrated risk and a lot of fintech companies can build on top of it,” Gensler said. “Then you have a node that's every bit as systemically relevant as maybe a stock exchange."
Alumna Yue Chen has been named the chief climate risk office for the Office of the Comptroller of the Currency, reports Emily Flitter for The New York Times. “Dr. Chen will focus on developing a new system to assess climate-driven risks to banks, and figure out how to monitor and manage them,” says the agency.
Writing for The Hill, Prof. Jonathan Gruber, Representative Ro Khanna (D-California) and Matt Hourihan of the Federation of American Scientists write that there’s “an unfortunate history of Congress authorizing ambitious boosts for science only to fall short in appropriations. Congress deserves credit for getting the CHIPS and Science Act across the finish line, but legislators shouldn’t rest on their haunches. Instead, our leaders should sustain the moment they’ve started and ensure robust support for federal innovation — our future depends on it.”
Prof. Thomas Kochan writes for Fortune about how California’s new Fast Food Council can positively impact businesses, investors, employers, and workers. The council is “composed of industry, worker, and government representative to set minimum wage, safety, and employment and training standards for workers in large fast food chains and their franchises,” writes Kochan.
Writing for The Hill, President L. Rafael Reif and Stephen A. Schwarzman, chairman, CEO & co-founder of Blackstone, praise the new “CHIPS and Science Act” and highlight the need for further action on the ‘Science’ part of the law. “We urge Congress to capitalize on this bipartisan momentum and appropriate the funds that the bill authorizes,” they write. The nation's "future competitiveness, prosperity and security all rely on technological leadership. To sustain its strength in the long term, the U.S. needs to invent and manufacture the next new technologies.”