Governments tend to treat AI as a national-security challenge while devoting far less attention to its effects on education, health, labor markets, and the judiciary. Addressing AI’s societal risks requires institutions designed to recognize and respond to emerging threats before they become systemic failures.
This paper incorporates the Lucas (1973) island model into a standard DSGE framework. It demonstrates that self-fulfilling stochastic inflation equilibria, which are driven by intrinsic uncertainty or pure sentiments, can exist under rational expectations. Furthermore, it shows that these sentiment-driven stochastic equilibria exhibit monetary non-neutrality, even when the fundamental equilibrium is unique and monetarily neutral….
On July 13, the field of economic education lost one of its leading educators, Dr. Mark C. Schug. I had the privilege of knowing Mark for many years and the honor of coauthoring Economic Episodes in Civics and American Government with him. This tribute aims to preserve the historical record of his remarkable career and…
Crude Oil is lower on Thursday even as the war that sets its price reached a country it had spared for five months. WTI trades just above the $82.00 handle, down more than 1.5%, and Brent holds just above $86.50 with a near-identical loss after both gave back a chunk of Wednesday’s rally. The tape…
Cloudflare (NET +2.71%) could become a key toll road for the internet as AI agents drive more traffic across the web. Pay Per Crawl gives the company a fascinating new revenue angle, but valuation, competition, and insider selling make the stock a much harder call. *Stock prices used were the market prices of June 27,…
Israel’s Prime Minister Benjamin Netanyahu gives a news conference in Jerusalem on June 15, 2026. Ronen Zvulun | Afp | Getty Images Politicians and world leaders including Israeli Prime Minister Benjamin Netanyahu are gathering in Washington to meet with President Donald Trump while in town to honor the late Sen. Lindsey Graham at his funeral…
Financial literacy just hit a 10-year low — and it is devastating bank accounts.
PARIS—US President Donald Trump’s decision to put Treasury Secretary Scott Bessent in charge of implementing his recent executive order on AI oversight marks a significant shift in America’s approach to tech governance. Such a change was unlikely to come from the AI industry or sectoral regulators, both of which remain wedded to the familiar narrative that regulation stifles innovation and that the overriding policy priority is to beat China by developing the world’s most advanced AI models—including, ultimately, superintelligence.