Economics

A working paper by Prof. Drew Fudenberg and a team of researchers suggests that major AI companies should share their advances with one another to mitigate competitive pressures and decrease the potential of a catastrophic event, writes Amanda Taub for The New York Times. “If the players, including companies like OpenAI and Anthropic, can see that no one is racing into dangerous territory, they will have less motivation to do so themselves, the paper reasons,” explains Taub.  

Prof. Gary Gensler joins Tom Keene and Paul Sweeney, hosts of the “Bloomberg Surveillance Podcast” to discuss the impact of AI on the US fiscal market. “The AI trade that our capital market is hovering on top of is an investment boom that’s about twice what the internet was,” says Gensler. AI is “now about 2.5% of our economy—all of the data centers and so forth. [Major AI companies] are spending so much, but will it lead to the revenues to justify that spending?” 

Prof. Gary Gensler joins Bloomberg’s “Open Interest” to discuss the risks AI poses to the financial system,. “We’re spending about 2.5% of our gross domestic product on this AI build,” says Gensler. “When we have these booms, they plateau at some point; firms lose some of their pricing power, some of their growth, and you expose where the debt in the system is. Right now, there’s a lot of risk in this capital market.”  

In an opinion piece for The Boston Globe, Prof. Jonathan Gruber discusses Massachusetts’ Question 5, the proposed tax rebate rule that would mandate that taxes be returned to taxpayers each time the state’s revenues grow faster than wages and salaries. “Most economists believe a recession is coming but we can’t say when. The best way to plan is to have the savings to help us through, or to invest so that we are as strong as possible when it hits,” writes Gruber. “Question 5 chooses the third path — spending the money now, and letting the state suffer in the future.”  

MIT was listed as the No. 1 national university in U.S. News & World Report’s 2027 “Best Colleges Rankings,” “based upon the analysis of more than 1,700 colleges and universities nationwide across 17 key measures,” writes MassLive’s Claudia Dimuro. “These measures included ‘First-year retention rates,’ ‘Earnings by major,’ ‘Faculty salaries,’ and ‘Student-faculty ratio,’ notes Dimuro.  

For Boston 25, reporter Alexis Rossi details MIT’s selection as the No. 1 national university in U.S. News & World Report’s 2027 “Best Colleges Rankings.” “MIT was also ranked first for undergraduate research and creative projects, second on the list of most innovative schools, and third on the list of best value schools,” writes Rossi.  

Prof. Jonathan Gruber joins Edgar B. Herwick III, host of GBH’s “The Curiosity Desk” to discuss what factors into the U.S. Federal Reserve’s decision to raise interest rates for the first time since 2023. Federal Reserve members “are looking at things like tariffs, the tax on goods coming into this country. They’re looking at the war,” says Gruber. “We have, basically, these underlying forces driving inflation. In that case, the Fed has a mandate. The Fed’s job is to balance two forces: economic growth and inflation, and the way they balance them is by trying to keep inflation near a target of two percent.”  

Prof. David Autor and his team of researchers found that junior patent attorneys who used AI for assistance showed no net improvement in their skills, reports Andy Mukherjee for Bloomberg. “When researchers subsequently tested everyone on an unassisted, offline task to gauge internalized judgment, the learning gains went entirely to senior lawyers,” writes Mukherjee. “Foundational expertise may be a prerequisite for extracting durable skill from AI-assisted practice,” the researchers noted.  

The U.S. News & World Report’s 2027 “Best Colleges Rankings” honors MIT as the No.1 national university, writes Elizabeth Mehler for Boston.com. “The rankings are based on up to 17 weighted measures of academic quality and success, including graduation and retention rates, social mobility for low-income students, post-graduate earnings, academic peer assessment, and faculty resources,” writes Mehler. 

7 News Boston spotlights MIT being named the No. 1 national university by U.S. News and World Report for its 2027 “Best College Rankings.” The ranking highlighted MIT’s “high enrollment of just over 4,500 students in 2025, its student faculty ratio of 8-1 and its 4-1 academic calendar.”  

The Boston Globe’s Chloe Craft highlights MIT being ranked No. 1 in the U.S. News & World Report’s 2027 “Best Colleges Rankings.” “Take a look at the rankings of U.S. News & World Report’s 2027 lists of the nation’s best universities and liberal arts colleges, released Tuesday, and you’ll find lots of schools from New England near the top of the charts,” writes Craft. “MIT, ranked No. 1 for the first time ever.” 

MIT has been named the No. 1 national university in U.S. News & World Report’s 2027 “Best Colleges Rankings,” writes Chloe Craft for The Boston Globe. MIT is proud to be “part of a strong network of excellent colleges and universities across the nation, dedicated to educating students and pursuing curiosity-driven research. America’s economic strength, scientific leadership, and national security depend on world-class education and research institutions.” 

In The Wall Street Journal’s “Economics Newsletter,” reporter Greg Ip highlights a study by Prof. David Autor that found that AI did not significantly improve the performance of the 133 patent lawyers who participated. “Among junior lawyers, the performance of some got better, others got worse, and on average they were the same. Among senior lawyers, the lowest performers improved, the best didn’t,” writes Ip. “The conclusion: Lawyers don’t acquire durable new skills with AI.” 

A new paper co-authored by Prof. Anna Stansbury examines how socioeconomic differences can impact first-generation college students after graduation, writes Noam Scheiber for The New York Times. Stansbury and her colleagues found that having a parent with a graduate degree reflected a “generalized socioeconomic advantage.” Growing up affluent often “helps you learn how to read between the lines in certain situations, because you’ve been in similar kinds of situations,” Stansbury explains. 

Prof. Kristin Forbes speaks to Associated Press reporter Christopher Rugaber about the continued impact of the Iran war on oil and gas prices in the U.S.. “I don't see any end to the war in Iran right now,” says Forbes. “Given what everyone has been through in the last few years of high inflation, consumers are more sensitive, companies are more sensitive, they raise prices faster ... The risks are much more on more persistent inflation than it falling quickly.”