Nobel Laureate Spence Warns Economy May Get Turbulent

The video discusses the Lewis model's relevance in today's economic climate, highlighting the shift of labor from traditional to modern sectors. It explores current inflationary challenges, the potential of digital transformation to boost productivity, and the complex effects of climate change on the economy. The discussion also touches on wealth distribution and the possibility of a new form of capitalism, emphasizing the need for balanced growth and social objectives.

What is the primary mechanism of growth in the Lewis model?

• Expanding global trade

• Enhancing technological innovation

• Transitioning labor to modern economies

• Increasing agricultural output

What is the Lewis turning point?

• A point where traditional sectors become more productive

• A stage where labor transition to modern economies is complete

• A period of economic recession

• A phase of rapid technological advancement

How might digital transformation impact current economic pressures?

• By decreasing global demand

• By boosting productivity

• By increasing supply chain congestion

• By reducing labor costs

What is a potential risk if inflationary pressures persist?

• Increase in global trade

• Loss of central bank credibility

• Stability in interest rates

• Decrease in sovereign debt

What is a challenge associated with digital technologies?

• They have no impact on productivity

• They are only applicable in agriculture

• They may disrupt labor markets

• They are too expensive to implement

What is a potential effect of decarbonization on inflation?

• It will definitely cause deflation

• It will immediately stabilize prices

• It could lead to unpredictable inflationary or deflationary pressures

• It will have no impact

What is a possible outcome of aligning business with social objectives?

• Decreased global cooperation

• Increased economic inequality

• A new form of capitalism

• Higher unemployment rates