2019 ist not only marked by an astounding wave of optimism in financial markets, but also by the formation of a new network of academic economists that are committed to the development of new ideas for policies to address today’s challenges, the Economists for Inclusive Prosperity. Their first policy brief, aptly titled Economics for Inclusive Prosperity, includes a relevant chapter by Atif Mian, Professor of Economics at Princeton University, on “How to think about finance?”. This very readable chapter makes a strong case for GDP-linked securities, since “state-contingent contracting does not suffer from the usual moral hazard problem in risk-sharing contracts.”
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