Gary and Simon discuss the global economic cycle in the wake of IMF / World Bank annual meeting. Are growth and income still heading in a positive direction or is a worldwide slowdown imminent? With interest rates rising, high stock market valuations, inflation persistent, energy prices elevated, and unsustainable federal deficits, there are signs of growing economic and financial fragility in numerous economies currently dependent on the AI boom. Could we be facing a potential repeat of the bust after the Internet investment boom of the late 1990s? Or from the housing boom of 2005–8? While all global economic upswings share happy similarities, each global economic downswing is unhappy in its own way.
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Host bios:
Gary Gensler, former Chair of the Securities and Exchange Commission, is Professor of the Practice of Global Economics and Management, and Professor of the Practice of Finance, at MIT Sloan School of Management. His research focuses on artificial intelligence, finance, and economic policy. He previously served as Chairman of the Commodity Futures Trading Commission, Under Secretary of the Treasury for Domestic Finance, Assistant Secretary of the Treasury, Chair of the Maryland Financial Consumer Protection Commission, and Senior Advisor to Senator Paul Sarbanes. Earlier, Gensler was at Goldman Sachs for 18 years, where he became a partner.
Simon Johnson, a 2024 Nobel laureate in economics and former Chief Economist at the International Monetary Fund, is the Ronald A. Kurtz Professor of Entrepreneurship at MIT Sloan School of Management, head of its Global Economics and Management group, and Co-Director of MIT’s Stone Center for Inequality and Shaping the Future of Work. He co-chairs the CFA Institute Systemic Risk Council and is an AI Ambassador for the UK. Simon is the author of 13 Bankers, Jump-Starting America, and Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity.
Gary & Simon also recently co-edited, with Ugo Panizza and Beatrice Weder di Mauro, The Economic Consequences of the Second Trump Administration.