MIT Economics professors Daron Acemoglu and Simon Johnson, along with University of Chicago political scientist James Robinson, have been awarded the 2024 Sveriges Riksbank Prize in Economic Sciences for their groundbreaking research on the relationship between political systems and economic growth. Their long-term collaboration has shown that inclusive governments, which prioritize individual rights and the rule of law, foster greater economic activity and sustained technological innovation. This recognition of their work highlights the importance of promoting inclusive political institutions for long-term economic growth.
Acemoglu, Johnson, and Robinson Awarded Nobel Prize in Economics for Groundbreaking Research
Background
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, commonly known as the Nobel Memorial Prize in Economic Sciences, is one of the most prestigious awards in the field of economics. It is awarded annually to individuals who have made groundbreaking contributions to the field.
2024 Laureates
In 2024, the Nobel Memorial Prize in Economic Sciences was awarded to three economists: Daron Acemoglu, Simon Johnson, and James Robinson. Their research focuses on the relationship between political systems and economic growth.
Acemoglu and Johnson are both professors at Massachusetts Institute of Technology (MIT), while Robinson is a professor at the University of Chicago. They have collaborated on several research projects over the past two decades, examining the impact of political institutions on economic outcomes.
Groundbreaking Research
Their groundbreaking research has shown that inclusive political systems, which prioritize individual rights and the rule of law, foster greater economic activity and sustained technological innovation. This research challenges the conventional wisdom that economic growth is primarily driven by technological advancements and accumulation of capital.
Acemoglu, Johnson, and Robinson argue that political institutions play a crucial role in shaping the incentives for innovation, investment, and economic growth. They have demonstrated that countries with more inclusive political systems tend to have higher levels of economic growth and technological progress.
Top 5 FAQs
1. What are the key findings of Acemoglu, Johnson, and Robinson's research?
Their research has found that inclusive political systems, which prioritize individual rights and the rule of law, foster greater economic activity and sustained technological innovation.
2. What is the significance of their research?
Their research highlights the importance of promoting inclusive political institutions for long-term economic growth and technological progress.
3. What are the implications of their research for policymakers?
The research suggests that policymakers should focus on strengthening political institutions and promoting individual rights and the rule of law to promote economic growth.
4. How does their research compare to previous work in the field of economics?
Their research challenges the conventional wisdom that economic growth is primarily driven by technological advancements and capital accumulation. They argue that political institutions play a crucial role in shaping economic outcomes.
5. What are the future directions of research in this field?
Future research may focus on examining the impact of political institutions on other economic outcomes, such as inequality, poverty, and environmental sustainability.
Several financial entities including SBI Life Insurance, Aditya Birla Mutual Fund, Morgan Stanley, and Goldman Sachs have collectively purchased a 6% stake in Aditya Birla Lifestyle Brands (ABLBL) from Flipkart Investments for Rs 998 crore through open market transactions. The acquisitions were made by renowned names such as Amansa Capital, Nippon India Mutual Fund, ICICI Prudential MF, UTI MF, among others. Following the transaction, SBI Life's stake in the company has risen to 3.65% from 2.23%. The transaction resulted in a significant increase in the share price of Aditya Birla Lifestyle Brands, rising by 7.01% and closing at Rs 146.01.
The head of the International Monetary Fund, Kristalina Georgieva, cautioned that the current state of the global economy is uncertain and may face more challenges in the future. She pointed to ongoing issues such as the US-China trade war and record gold prices as potential threats. Despite the IMF's prediction of modest growth, Georgieva stressed the importance of proactive measures, such as addressing imbalances and reducing public sector deficits, in order to avoid further instability. She also acknowledged the widespread frustration and anger in many countries, especially among younger generations, demanding better opportunities.
After years of speculation, Hyundai has finally announced the launch of its luxury brand, Genesis, in India in 2027. This move is a part of the company's broader global expansion strategy and aims to boost margins and reduce reliance on the US market. Along with the launch, Hyundai also plans to assemble the Genesis models locally, which could result in competitive pricing for Indian consumers. The luxury SUVs, GV80 and GV80 coupe-SUV, are expected to be the first models to hit the Indian market, taking advantage of the popularity of SUVs in the country.
In a major move that aligns with the government's "Viksit Bharat" vision, Google has announced a $15 billion investment to set up its first AI hub in India located in Visakhapatnam, Andhra Pradesh. The tech giant has partnered with the Adani Group to build a cutting-edge campus that combines advanced AI infrastructure, renewable energy solutions, and an expanded fibre-optic network. This investment marks Google's largest AI hub outside the United States and is expected to drive growth and innovation in the country's digital economy. Prime Minister Narendra Modi has hailed this announcement as a powerful step towards democratizing technology and securing India's place as a global technology leader.
EPFO introduces new rules for partial withdrawals, allowing members to withdraw up to 75% of their provident fund corpus with a minimum balance of 25%. The move aims to provide financial support for immediate needs without sacrificing long-term retirement savings. The rules also include increased time for availing premature settlements, simplification of withdrawal process, and collaboration with India Post for doorstep services. These measures are expected to improve financial flexibility while ensuring sustainability of retirement savings. Category: Business Title: EPFO Eases Rules for Provident Fund Withdrawals, Including 75% Partial Withdrawal and Simplified Process
Google CEO Sundar Pichai and Indian Prime Minister Narendra Modi discuss the tech company's investment in India's digital economy, including plans for a new AI hub in Visakhapatnam. This hub will provide access to cutting-edge AI technology and support industries such as healthcare, education, agriculture, and logistics. It will also connect with Google's global network of AI centers in 12 countries.
During a visit to Chennai, Union Minister Nitin Gadkari announced plans for India to become a leader in the production of alternative and biofuels. He also highlighted the country's growth in the automobile industry, job creation, and improved road infrastructure. Plans for several new highway projects in Puducherry were also announced, showcasing progress and development in the region.
Stocks were headed for a tough day on Tuesday before Fed Chair Jerome Powell's comments turned the tide. After falling about 1%, major indexes rallied in the afternoon when Powell hinted at the possibility of future rate cuts. Investors welcomed the news with relief as it stopped the downward trend and prevented what would have been the second down day in three sessions.
Prime Minister Modi will visit Ayodhya on November 25 to take part in the official completion ceremony of the iconic Ram Temple, where he will be hoisting a 21-foot flag atop the temple. This coincides with the auspicious date of Ram Vivah Panchami in the Hindu calendar. The temple holds great significance not just for India, but for the world as PM Modi envisions it as a symbol of unity and harmony among all communities. The five-day ceremony will be led by scholars and Vedic priests and is expected to be a historic moment for Ayodhya as it opens its doors to global visitors.
India's retail inflation has hit an 8-year low in September at just 1.54%, largely due to a significant decline in food prices. This is a relief for consumers as the cost of living has decreased, and it is below the RBI's tolerance range of 2-6%, which is mandated to be maintained for more than three consecutive quarters. This indicates a positive trend in the Indian economy and could potentially impact RBI's monetary policy decisions.