Macro Matters: economics, people and the pandemic - is there a missing link?

Welcome to Macro Matters, the weekly economics and political podcast from the ASI Research Institute, hosted by Paul Diggle and Stephanie Kelly.

This week - what lessons can economists learn from how a virus spreads, and what pitfalls should they avoid? Our guest, the distinguished economist Paul Ormerod, suggests that the macro-modellers of the Covid-19 virus might have missed a trick; put simply, they didn’t properly take into account the fact that people faced with a situation – any situation – are highly likely to change their behaviour as a result. And if economics is all about human behaviour, should economists have been as closely involved as epidemiologists were in modelling the approach to managing the virus back in March?

In the second part of the podcast, Paul and Stephanie discuss the search for a vaccine, and how the Research Institute has tried to extend the kind of thinking that Paul Ormerod was talking about by building a framework to measure vaccine development and output.

Just click below to listen and please visit our LinkedIn page if you’d like to continue the conversation.

 

You can read Stephanie’s article on the search for a vaccine here.

Transcript

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Risk warning

Risk Warning

The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested.