Parag Waknis (@wparag) header
Parag Waknis (@wparag) profile picture

Macro & Monetary Economics @SRMUAP. views personal, retweets not endorsements & likes= bookmarks. PhD from @UConn

Delhi, India
Joined July 2010
Photo by Parag Waknis (@wparag)Photo by Parag Waknis (@wparag)Photo by Parag Waknis (@wparag)Photo by Parag Waknis (@wparag)Photo by Parag Waknis (@wparag)Photo by Parag Waknis (@wparag)Photo by Parag Waknis (@wparag)Photo by Parag Waknis (@wparag)
While teaching Solow model to fourth year UG students in Economics at @SRMUAP, one of the students' question- how can everyone spending less lead to growth? -sparked this post. Take away- take Paradox of Thrift with a chunk of salt! paragwaknis.substack.com/p/s…
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Parag Waknis retweeted
The historic Democratic victory in the midterms is a lifeline for US democracy. It would be a mistake to minimize the importance of Democrats taking control of the House and the Senate and doing so resoundingly. Yet it would also be a huge mistake to fail to recognize that the toughest part starts now. Senator Jon Ossoff stated in his victory speech: “we must acknowledge that the underlying crisis gripping our republic remains and that therefore our most vital work lies ahead.” But even this frank assessment understates the severity of the challenge facing the party. Tuesday’s outcome was an anti-Trump vote. But it was delivered by the same frustrated voters that brought Trump to power and gave both houses to Republicans in 2024 in an anti-Biden vote. If Democrats cannot grapple with the obscene levels of inequality in this country, with the real affordability crisis and with the vexing problem of creating good jobs for Americans of all skills, the pendulum could swing back in 2028. Democrats need a platform that is at once realistic andradical to tackle the tremendous economic challenges for workers. Neither progressive Democrats’ reliance on taxes, transfers and traditional regulations, nor centrists’ attachment to the status quo, nor the wishful thinking of those banking on AI-driven “abundance” is radical enough. The inequality, affordability and jobs problems facing Americans will only get worse in the coming AI economy. Democrats need to articulate new aspirations and a new governing philosophy, as I have argued in my book What Happened to Liberal Democracy. penguinrandomhouse.com/books… These have to be centered on creating well-paid, career-building jobs for all workers, and especially those without a college degree, who have been left behind in the postindustrial economy of the last half century. This agenda must start with a workable plan for redirecting AI, so that this promising technology isn’t shaped by the dreams of a small cadre intent on artificial superintelligence and automation of most of what humans do. We must instead articulate why it is feasible and desirable to build pro-worker AI and how this can create jobs and decent incomes for workers. We must also propose policies to help a new pro-worker AI economy (and some of the elements of such a policy are outlined in this piece: nature.com/articles/d41586-0… more details can be found here: brookings.edu/articles/build…). This effort must be accompanied by a broad enough Democratic tent that recognizes the cultural as well as economic discontent of working-class communities. The worst response to Tuesday’s results would be for Democrats to rest on their laurels. The hard work starts now.
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Parag Waknis retweeted
Replying to @johannesmboehm
@johannesmboehm and Chaney combine data on half a million ancient coins with a model of trade and money to reconstruct trade and consumption from AD 325 to 950. The estimates show economic activity shifting away from the Mediterranean from the 6th century. econometricsociety.org/publi…
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Finally. Can we now move the public debate to more substantive issues like ensuring education and health for all?
Studying engineering schools in India, no meaningful differences in instructional quality between reservation category faculty and general category faculty are detected, from @RobertFairlie6, @saurabhk2701, Prashant Loyalka, and @notgaganshallow nber.org/papers/w35963
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Quite obvious what your choice should be!
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Amazing application of AI. This is the future.
I'm thrilled to be launching Econvitals today. It's been the main way in which I have been tracking and understanding the economy over the last several months. And I decided I might as well share it with all of you--for free. Has a combo of website, email lists & social media.
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There is more than one way to contribute to—or bring about—a fundamental scientific revolution. We all know that Tom Sargent has had his 'giant's share,' but this tidbit is priceless! From: Learning from Lucas, tandfonline.com/doi/abs/10.1…
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I recently completed a trip to four central banks in Europe and learned a lot from them. Here is my write up of this amazing opportunity I had to learn from others. (1/2) macroeconomicpolicynexus.sub… @RobinWigg @robin_j_brooks @ChrisGiles_ @MaryDalyEcon @Austan_Goolsbee @paulwinfree @annap_2013
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Got my own signed copy of Messy Jobs, now with a wonderful message from the fantastic Jin Li: "Let's do AI research together! With admiration - Jin 😊" Messy Jobs is a terrific book: an early look into what a modern organization could be when it integrates AI.
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Parag Waknis retweeted
Two new papers on the timeless question: how do central banks, by raising interest rates, lower inflation? grumpy-economist.com/p/two-n…
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Not much surprise there. How to institute policies that ensure welfare without changing the gender conditional wage rate remains a question to explore.
New research: Firms respond to the mandated extension of maternity leave benefits in India by replacing female workers with male workers. This substitution is concentrated in industries with high female employment shares docs.iza.org/dp18888.pdf
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My book will be available in stores from this week. Meanwhile, happy to see that it is the Number 1 bestseller in the economic policy section of Amazon.
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📄New paper alert! “Affirmative Action, Faculty Productivity and Caste Interactions” (with @RobertFairlie6, Saurabh Khanna & Prashant Loyalka) is forthcoming at the Journal of Political Economy Microeconomics. What we ask, and what we find: a 🧵
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.@Rukmini: The number of Indian women in the agricultural workforce is the highest it has been in 30 years. And for the first time, the number of men working in services has surpassed the number of men working in agriculture dataforindia.com/the-big-shi…
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Very valuable! "DSGE Models in Central Banks: Progress and Prospects" by Christophe Cahn, Patrick Fève, and Julien Matheron. "This paper traces how dynamic stochastic general equilibrium (DSGE) models became a central tool for quantitative policy analysis in Central Banks. Their appeal grew out of the shortcomings of large-scale macroeconometric models, the Lucas and Sims critiques, and the gradual shift from real-business-cycle theory to the New Keynesian framework. The paper reviews the medium-scale DSGE model that became standard in policy institutions, as well as extensions dealing with unemployment, open-economy transmission, financial frictions, and fiscal policy. It also discusses the practical machinery (solution, estimation, forecasting, and counterfactual analysis) through which these models are brought to the data and used in policy work. The final part turns to heterogeneous-agent New Keynesian models (HANK), where incomplete markets and distributional heterogeneity reshape the transmission of monetary and fiscal policy. The central claim is that DSGE models remain valuable less as definitive descriptions of the economy than as a disciplined way to connect theory, data, and policy experiments, while identifying where richer mechanisms are needed." banque-france.fr/en/publicat…
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Amruth G. Kumar (Central University of Kerala) #VBSA #NAAC #NCTE #UGC #AICTE #HEIs #IISc #IIT #NIT The Hindu, 05/10/2026
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He's baaack! @GeorgeSelgintakes time off from living the good life in Spain to weigh in on lessons learned from the Fed's Main Street lending facilities, emergency lending facilities, and the Fed's balance sheet task force. mercatus.org/macro-musings/g…
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Parag Waknis retweeted
Los que dicen que hay que construir más viviendas para bajar los precios están peleados con los datos: No hay mucha relación entre tener más viviendas y su precio, pero, en caso de haberla, es la contraria a la que nos cuentan: a mayor cantidad de viviendas por persona, mayor es su precio.
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Parag Waknis retweeted
The "China shock" narrative illustrates why the lack of debate is a problem in economics. Autor et al. published a series of articles that have since been falsified by subsequent research. However, few realize this, which means the articles persist, like zombies. 1/8
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Parag Waknis retweeted
A good day to share my favourite book on Mohandas Karamchand Gandhi. It’s a brilliant intellectual history and one that instantly made me a Devji fanboy when I read it in grad school.
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