F&D: Reconnecting Morality with Political Economy

Of Interest/ESG News

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F&D: Reconnecting Morality with Political Economy

March 5, 2025-Putting moral insight back into economics enhances understanding of political outcomes
For much of the 20th century, the disciplines of moral psychology and economics were seen as distinct-each focused on separate concerns, with little cross-pollination. This wasn't always the case.
If we look back to philosophers such as Adam Smith and Karl Marx, discussions of political economy were deeply intertwined with questions of morality.

More recently, these fields have started to reconnect, recognizing that morality influences economic behavior, and vice versa, in profound ways.

It’s something I discussed in a recent review of the latest literature in this field (2024).

As an economist, I believe this growing intersection offers valuable lessons not only for academia but also for policymakers grappling with today's biggest challenges, such as greater inequality, political polarization, and diminishing trust in institutions.

Source: imf.org

How Animal Spirits Affect the Economy

March 3, 2025—Viral narratives could be the missing link between emotions and economic fluctuations
Storytelling is central to how we interpret economic events. We recall economic history through haunting images of anxious crowds waiting to take money out of banks during the Great Depression or dejected office workers carrying cardboard boxes out of Lehman Brothers in 2008.

Trump's latest global tariffs, announced on a self-proclaimed 'Liberation Day', will likely cause sharp short-term trade declines-and a significant surge in inflation for the US

March 3, 2025—On 2 April 2025 - his self-proclaimed 'Liberation Day' - President Donald Trump once again announced new tariffs. This time, all US trade partners will face a minimum 'discounted reciprocal tariff' of 10%. For countries with trade surpluses deemed guilty of 'currency manipulation and trade barriers', tariffs could rise to nearly 50%. Southeast Asian export-driven economies will particularly be affected. Major trading partners-such as China (34%), the EU (20%) and Japan (24%)-will face intermediate rates, although they are extremely high by historical standards.

WTO and OECD release expanded dataset on trade in services covering over 200 economiess

February 17, 2025-New data on bilateral trade in services covering over 200 economies from 2005 to 2023 was released by the WTO and the Organisation for Economic Co-operation and Development (OECD) on 17 February.

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