Penn‘s Exchange: Markets & Cooperation: Recent Episodes
Penn Initiative for the Study of Markets
Penn‘s Exchange, the forum where we discuss everything related to the historical experience of markets and their philosophical foundations.
The questions of what economics is and the role of an economist have long been at the heart of the profession, igniting extensive debate about the nature, scope, potential, and limitations of the discipline. Today, we’ll take a historical approach to these issues, exploring how past thinkers—ranging from Aristotle and Aquinas to Adam Smith and the latest Nobel Prize winners in economics—have defined and approached the study of economics.
The concept of a monetary union today implies a multilateral entity that centralizes the emission of a common currency shared by multiple countries. This arrangement provides benefits, such as lower transaction costs, but poses challenges, especially without a complete fiscal union, which can create perverse incentives. However, monetary issues are not new; they have been a consistent aspect of human organizations throughout history. Today, we will discuss how the politically fragmented German lands under the Holy Roman Empire established a common currency in the sixteenth century and examine the debates surrounding its perceived success or failure.
In 1492, Spain's Alhambra Decree forced Jews to convert to Christianity or face expulsion, leading many to become conversos. Portugal issued a similar edict in 1496. Driven by a desire for religious homogeneity, these measures led to persistent discrimination based on Jewish ancestry. How did this new group of New Christians defend their interests and thrive in economic and social spheres, building connections with Europe, Africa, and the Americas? Today, we talk with Dr. Bethencourt about his new book, "Strangers Within: The Rise and Fall of the New Christian Trading Elite."
In today's political discussions, the endorsement of free trade is commonly linked with perspectives that lean toward the right side of the spectrum. However, it's crucial to recognize that the roots of free trade and classical liberalism extend beyond contemporary left-right divides. As a result, the promotion of free trade has profoundly impacted modern ideologies across the political spectrum. Originating as a response to the imperialist and mercantilist policies of the early 19th century, the ideals of free trade possess a profound intellectual legacy intertwined with the narratives of historical social radicals, feminists, and pacifists. Joining us today is Marc Palen, author of "Pax Economica: Left-Wing Visions of a Free Trade World," who will delve into the themes explored in his recent publication.
Sci-fi builds alternative realities from current science, spanning space travel, AI, genetics, and quantum mechanics. Its appeal lies not only in scientific accuracy but also in the constraints it imposes on characters within these worlds. Audiences are drawn to the social questions it poses, exploring diverse societies, cultures, and interpersonal dynamics. Themes delve into human behavior, societal structures, power dynamics, and the impacts of technology. Mark will explore how social science influences sci-fi narratives and the insights they offer through a discussion of one of the most important pieces of science fiction: Dune.
The Great Enrichment stands as one of humanity's pivotal moments, igniting in Europe during the 17th to 19th centuries, prompting countless attempts to decipher its origins. Today, Dr. Salter will delve into his latest collaborative work with Professor Andrew Young, titled "The Medieval Constitution of Liberty: Political Foundations of Liberalism in the West." In this book, they argue that Western exceptionalism traces back to the intricate and fragmented political systems of Medieval Europe. These structures, they assert, provided the fertile ground for effective governance, which in turn spurred the generation of wealth.
From the 11th to 14th centuries, the Roman Catholic Church was Europe’s largest and most organized institution. Unlike any other entity at the time, it had the capacity to tax, create law and administer justice. Secular authorities had to grapple with it. They competed and allied with it. But most importantly, they emulated it. Today we will be talking with Dr. Anna Grzymala-Busse about her most recent book, Sacred Foundations: The Religious and medieval roots of the European State.
"Too much money spent chasing too few goods" is the preferred explanation that most people think about when discussing the causes of inflation. But how generally applicable is said argument to our modern economy? Today we will be talking with Dr. John Cochrane, who will speak about his most recent book, The Fiscal Theory of the Price Level, where he argues that changes in price levels depend rather on the expectations of the ability of governments to repay their debt
We tend to think of political borders as exogenous artifacts that are imposed in a top-down manner by governments with imperial ambitions. And while this is true in some cases, there is a more significant case to be made for the alternative, where borders and jurisdictions are endogenous to the populations that draw them. A country's size and frontiers depend on the political and economic costs and benefits of sticking together or breaking up. Today we will have Enrico Spolaore, a leading economist in this research area, who will talk about countries' optimal size and why borders are drawn the way they are.
Before the 13th Century, the low countries were a small region at the fringe of Europe. Yet, by the 17th Century, the Netherlands had transformed into the most prosperous society in the world. How did such transformation occur? Today we will be joined by Professors Praak and van Zanden, who will discuss their most recent book "Pioneers of
Capitalism" and guide us into the economic history of medieval and early modern history, telling a story about how a strong civil community and feudal institutions interacted to give birth to the first capitalist society
As its name implies, the Renaissance is often thought of as a turning point in human history. Art is its most celebrated, long-lasting legacy. And the romanticized perception of the artist as a genius is its byproduct. But how exactly did artists become artists? Who commissioned their work? How could the patrons oversee the quality of the work theywere commissioning? We will be talking today with Ennio Piano about the economics of art markets in the Renaissance.
Nigeria is Africa’s largest state by population size and by nominal GDP. It is a multiethnic state where more than 250 minorities coexist. Political conflict due to geographic, religious, and cultural differences has been a common theme since its independence from Britain in 1960. How can a large and diverse state like Nigeria be fully integrated intoone common Nation? Today, Dr. Okunogbe will talk to us about her recent research.
Up until the 18th century, China was the world’s hegemon. So how did it get there in the first place? And why did the Empire collapse abruptly in the 20th century? Today, Yuhua Wang will talk to us about his most recent book, where he argues the Chinese state experienced a gradual decline in its state capacity caused by a sovereign’s dilemma, where cohesive elites strengthened the state but also weakened the position of the emperor.
Narrow banks are depository institutions that focus on investing in federal reserve deposits and pass on most of the interest accrued to their respective depositors. Dr. James McAndrews, CEO of TNB USA Inc., will help us unravel what role narrow banking can play in modern financial systems.
Adam Smith is widely acknowledged as the father of economics. Yet, in his own time, he was mostly known for his moral and jural philosophy work. So what do we set to gain by directly reading him today? Today we are joined by Maria Pia Paganelli, who will act as our guide into Adam Smith's work and the importance of the History of Economic Thought as a discipline.
Cash transfers have become a much-discussed policy tool. But studying the impact of sudden wealth shocks remains controversial. Martínez-Marquina joins us to discuss his recent research on an interesting setting that may help us shed light on the discussion: the effect of winning the lottery in Spanish towns since the 1900s.
To measure is to know. That has been science's dictum since the industrial revolution. But what happens when our measurement estimates are wrong? Today we will be joined by Timothy Guinnane. He will talk to us about how inaccurate the world's historical population estimates are and the general implications for economics, demography, and social sciences.
What makes people move away from their places of origin, and what are the consequences? Economic concerns matter, of course, but cultural attitudes that select people to migrate matter too. Today we will be joined by Anne Beck Sofie Knudsen, who will talk to us about Scandinavian migration to America in the 19th century
The history of money is the history of human exchange. We may now take for granted the existence of national monies, but our current monetary system anchored around central banks is a product of 20th-century political economy developments. Today we will be joined by Bryan Cutsinger, who will discuss his research on the history of money provision in North America in the 19th century.
Global concerns about comparative economic development, growth, and inequality cannot be adequately assessed without attending to the core foundations that have shaped human history. Today, Oded Galor joins us to discuss his most recent book on this topic: The Journey of Humanity. We talk about why a unified approach to economic growth is needed, why population size, population composition, and technological change matter, and why we can be hopeful about humanity's future.
You can get the book here: www.amazon.com/Journey-Humanity-Origins-Wealth-Inequality/dp/0593185994
Culture and tradition are important determinants of human behavior that are usually perceived to be outside the proper scope of economics. Today, Nathan Nunn will join us to discuss his most recent paper delivered during the 2022 AEA Distinguished Lecture. We talk about why culture matters, how beliefs are formed, and when relying on tradition may pay off.
Most recent demographic projections suggest humanity will reach its population peak by the end of the century. What lies ahead is uncertain as it will be a first for our world. Today, Professor Jesús Fernández-Villaverde joins us to discuss the challenges and the opportunities that may come with the end of the world's demographic transition.
Good managerial practices may help nations and firms increase productivity by rearranging existing resources into more efficient production processes. On the contrary, mismanagement---due to rent-seeking or out of pure neglect---can squander any growth opportunity. Understanding what good management entails and how can firms and countries achieve it is as crucial as ever. Today, Michela will talk to us about it.
Innovation is heralded as an essential trait of success in modern firms and societies alike. Entrepreneurs are hailed as our modern-day heroes, persons with creativity and heightened perceptiveness committed to finding better and more efficient ways of creating value. But what are the social conditions necessary to foster people like that? What are the broader institutional underpinnings that facilitate innovation? Today Michael will talk to us about it
Human societies are inherently prone to recurring shocks that constantly disrupt their organization. How can we effectively manage these shocks? How can we build better societal mechanisms to cope better and assure us a return to normalcy? Today Markus will help us understand the severity of the issue.
Southeast Asia has historically been the land of spices and riches to Westerners. To Asians, it was the buffer zone of conflict where Indian Buddhism and Chinese Confucianism collided. A geographical area where highlands and rain forest create the ideal spot for huge, diverse societies to emerge. Today, Jessica will talk to us about how these factors contributed to molding specific land-ownership patterns in the region and their impact on gender relations.
Out of World War II, a socialist state was born under the leadership of Joseph Tito that united many of the several ethnicities into one polity: Yugoslavia. It has been described as an alternative type of socialism deviating from a firm conception of central planning. Today Leonard Kukić will talk to us about how successful the experiment was in economic performance and its capability to unify the region.
In 17th century China, the Qing regime persecuted individuals for speech crimes against the state through literary inquisitions. The persecution targeted intellectuals, diminishing their reputation. It also affected the operation of charitable organizations. Through time, they amplified distrust of others and increased apathy towards local governance. Today Melanie will talk to us about it
The process of establishing a functional State is neither simple nor easy. Historical episodes may highlight the violent beginnings of current states, but they also help us recognize the inherent complexities in jumpstarting one. The building of the Mexican State was achieved by contingencies that arose out of the Conquest, by which Spanish and Native Conquistadores gained power and assured their right to self-governance vis a vis a central government. Emily talks to us about the challenges to build a State in this context.
The figure of the engineer as an embodiment of what’s productive and wealth-enhancing is a well-known story. But how much of the story is true and how much is a myth? Are the engineers really such a powerful force conducive to long-term development? Felipe will talk about how the engineer has impacted economic growth of our societies.
Sumptuary Laws were regulations that aimed to restrict excessiveness in the consumption of certain personal items of daily life, especially in food and clothes. . While these types of laws had existed in Europe since at least the Greeks their presence spiked in the late middle ages. Yet, by the 19th century, they had disappeared. What explains their appearance in disappearance? Mark talks to us about it, and how it relates to political economy problems of competition between elites.