Derek Rury
1.4K posts

Derek Rury
@DerekRury
AP in economics @OregonState, @OSU_SPP | formerly @UChicago, @UCDavisEcon


Forthcoming in the JEL: "Why Is Fertility So Low in High-Income Countries?" by Melissa S. Kearney and Phillip B. Levine. aeaweb.org/articles?id=10…




When his plan failed, Philippe Aghion had to reconsider – and the outcome turned out to be a success. 2025 economic sciences laureate Philippe Aghion’s ambition was to join the Harvard Society of Fellows, but he failed. Instead, he ended up at MIT, where he met Peter Howitt. They started to collaborate and created a mathematical model explaining how creative destruction drives economic growth. In 2025, the duo was awarded the economic sciences prize for their joint theory. Aghion’s failure thus turned out a success. Last December in Stockholm, Sweden, Aghion took part in a conversation with his co-laureate Joel Mokyr and journalist Katrine Kielos. You can watch the entire economics seminar here: youtube.com/watch?v=noWccY…







Re Grade inflation and Harvard rules (@jasonfurman): The mechanism behind grade inflation is the same as the mechanism behind inflation. Inflation comes from price setters trying to increase their relative price, leading all prices to go up. Grade inflation comes from teachers trying to increase or maintain their relative grade, leading all grades to go up. In the case of inflation, what limits the increase is lower aggregate demand, which leads price setters not to want to increase their relative price and stabilizes inflation (this is what the Taylor rule does). In the case of grade inflation, the feedback mechanism is not there. But it could be introduced. University rules smoothly penalizing consistently high grades, at the university level or at the individual grader level? Actually, the University can do something that the Fed cannot do: adjust the grade distribution and the average grade level down if needed. (Fed cannot adjust the average price level directly...) Fun to think about it.








