Many in modern universities talk about the importance of interdisciplinary research. Many fewer devote their careers to it and in the process drive the creation of a new field that brings together scholars in previously separate fields. This is what Alberto did with the modern field of political economy.
I first met Alberto when he was a graduate student working on political impacts on the business cycle and issues around central bank independence in the 1980s. At the time, there were a few economists interested in understanding politics rather than telling politicians what to do. And there were a few political scientists interested in economic issues. But there was no academic field of political economy. Today, political economy is an important component of economics and political science. And Alberto deserves much of the credit. As much or more than anyone else, he showed what could be achieved by bringing economic analysis to bear on political questions.
Again and again, Alberto posed and answered important questions at the interface of politics and economics.
What institutional design can best control inflation? Alberto showed that independent central banks were the best way to control the political temptation to inflate.
Why do European countries have larger public sectors and more generous welfare states than the United States? In what were to be recurring themes in his work, Alberto, with collaborators, emphasized the importance of ethnic homogeneity in creating support for others, and the importance of cultural attitudes regarding the extent to which success and failure were deserved and under individuals’ control or were matters of luck. This work anticipated the conflicts within welfare states that are playing out today, particularly the heat surrounding immigration issues.
Why do governments run deficits? When do they embark on efforts to reduce them and what are the differing impacts of stabilization based on raising taxes and cutting spending? Alberto was at the forefront of global debates on these issues for the past two decades. He believed that in many circumstances, though certainly not all, austerity could stimulate an economy, particularly if it involved spending cuts rather than tax increases. His views were much less Keynesian than mine, and we disagreed often with some vigor. But I respected enormously his willingness to painstakingly accumulate data and his willingness to view it objectively.
Inevitably, as an Italian concerned with political economy, Alberto was deeply interested in and engaged with the European Union project. He recognized that making a return to war inconceivable after a thousand years of frequent conflict was one thing, while creating a United States of Europe was very much another. His insight into political economy led him to have strong views about how to balance the interests of the rich north of Europe and poorer south in a way that could work for both.
I saw how influential he was a few years ago when a group of economists were invited by the German political leader Wolfgang Schäuble to talk to the Group of Seven ministers and central bank governors about the future of Europe and global integration. Most of the Nobel Prize winners and former senior officials present were given seven minutes to speak on panels. Alberto gave the lunch speech. Schäuble was, as usual, wise: Alberto had the most valuable and useful insights.
Alberto did not just study politics and leadership, he lived it. He served for three years as the chairman of the Department of Economics at Harvard; he led to great effect and shrewdly, without unduly cutting into his beloved climbing and skiing time. He served as an editor of the Quarterly Journal of Economics as it evolved into the world’s most influential academic economics journal. For the past 14 years, he led the National Bureau of Economic Research program on political economy. A sub-discipline that had not existed when Alberto entered it became the focus of one of the most vibrant and substantial programs under his leadership.
Alberto and Susan had a wonderful and loving partnership. Their devotion to each other was evident to all in their circle. My heart goes out to her.
Whatever challenges he faced, Alberto Alesina always had a smile for others and an interest in what they were doing. He maintained his passion for adventure in the outdoors while keeping up a research pace that many of the most nerdy envied. He never appeared stressed even as he lived a bicontinental life between the United States and Italy. Some people make easy things hard. Alberto made hard things look easy.
OTTAWA – Prime Minister Justin Trudeau says the NDP is caving to political pressure from Conservative Leader Pierre Poilievre when it comes to their stance on the consumer carbon price.
Trudeau says he believes Jagmeet Singh and the NDP care about the environment, but it’s “increasingly obvious” that they have “no idea” what to do about climate change.
On Thursday, Singh said the NDP is working on a plan that wouldn’t put the burden of fighting climate change on the backs of workers, but wouldn’t say if that plan would include a consumer carbon price.
Singh’s noncommittal position comes as the NDP tries to frame itself as a credible alternative to the Conservatives in the next federal election.
Poilievre responded to that by releasing a video, pointing out that the NDP has voted time and again in favour of the Liberals’ carbon price.
British Columbia Premier David Eby also changed his tune on Thursday, promising that a re-elected NDP government would scrap the long-standing carbon tax and shift the burden to “big polluters,” if the federal government dropped its requirements.
This report by The Canadian Press was first published Sept. 13, 2024.
Simon Jolin-Barrette, minister responsible for consumer protection, has tabled a bill to force merchants to calculate tips based on the price before tax.
That means on a restaurant bill of $100, suggested tips would be calculated based on $100, not on $114.98 after provincial and federal sales taxes are added.
The bill would also increase the rebate offered to consumers when the price of an item at the cash register is higher than the shelf price, to $15 from $10.
And it would force grocery stores offering a discounted price for several items to clearly list the unit price as well.
Businesses would also have to indicate whether taxes will be added to the price of food products.
This report by The Canadian Press was first published Sept. 12, 2024.
Quebec legislature member Youri Chassin has announced he’s leaving the Coalition Avenir Québec government to sit as an Independent.
He announced the decision shortly after writing an open letter criticizing Premier François Legault’s government for abandoning its principles of smaller government.
In the letter published in Le Journal de Montréal and Le Journal de Québec, Chassin accused the party of falling back on what he called the old formula of throwing money at problems instead of looking to do things differently.
Chassin says public services are more fragile than ever, despite rising spending that pushed the province to a record $11-billion deficit projected in the last budget.
He is the second CAQ member to leave the party in a little more than one week, after economy and energy minister Pierre Fitzgibbon announced Sept. 4 he would leave because he lost motivation to do his job.
Chassin says he has no intention of joining another party and will instead sit as an Independent until the end of his term.
He has represented the Saint-Jérôme riding since the CAQ rose to power in 2018, but has not served in cabinet.
This report by The Canadian Press was first published Sept. 12, 2024.
