[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Christina] The most important thing\Nthat I try to pass on
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is the sense that economics\Nis an empirical field,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,then if you get\Nnew empirical evidence,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you're going to have\Nto change the way
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you think about the economy.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I think being open to that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is the most important thing\Nfor a young economist to know.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Economists -- not a group
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,with a lot of Marys,\NNatashas or Juanitas,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and that's caused\Na lot of controversy.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,However, what's often overlooked\Nare the actual female economists
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who are pushing economics forward
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,by addressing real-world issues.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Welcome to Women in Economics.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,♪ [music] ♪
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I grew up in a family
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,where public policy\Nwas discussed a lot.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I was planning to be a lawyer,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,so I was going to major\Nin Government.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And as part of the Government\Nmajor at my college,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you had to take\Na year of Economics.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I was about three weeks in,\Nand I was hooked,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,like the government major's gone,\Nthe lawyer's gone,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I was in an Economist.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Christina Romer\Nis a macro economic historian.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,She takes the tools\Nof modern economics,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,statistics, and data
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and applies them\Nto historical questions.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Narrator] Christy's researcher\Nagenda throughout her career
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,has focused\Non a course set of topics
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,about economic fluctuations\Nand business cycles.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,She's been asking and answering
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,fascinating questions\Nabout our economy,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,starting with her dissertation\Nas a graduate student at MIT.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There, she changed\Nher understanding
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of how the economy\Nhas grown over time.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I think the questions\Nthat came to me
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,were about monetary policy\Nand business cycles
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and the Great Depression.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Narrator] It was widely believed
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that government policies led to\Nless fluctuations and unemployment
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,after World War II.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,However, the data before\NWorld War II was unreliable.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Nancy] But Christy came up\Nwith the ingenious insight
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that while you couldn't clean up\Nthe historical data,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you could fuzzy up\Nthe more modern data,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and that's exactly what she did.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And when she did it, lo and behold,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,all these differences\Nbasically collapsed.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Narrator] Amazingly,\Nif she applied
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the old techniques to the new data,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the pose WOrld War II economy
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,looked just as volatile\Nas the pre-World War economy.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,This contradicted the consensus
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on the role of government\Nstabilization policies.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Her research rattled\Nthe economic community.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It made a splash.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I remember one of the prominent\Neconomist MIT,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,his first reaction was,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"Well, I'd be very upset\Nabout this if I believed it.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So I'm not going to believe it."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Throughout her academic career,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Christine continued to challenge
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,her understanding\Nof the Great Depression.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,As just one example,\Nmost economists believed
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the Great Depression ended
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because of higher\Ngovernment spending
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and investment in public works.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,She showed that the impact\Nof those policies
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,were relatively small compared to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the monetary policy\Nchanges taking place.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [ ] Starting as soon as Roosevelt\Ntook the US off the gold standard
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,when he took office in 1933,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,over the next decade,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,there's just an enormous increase\Nin money supply.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What he showed was that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that is what caused\Nthe very rapid growth that we had.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Narrator] Christina's research\Nhas often focused on the effect
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,economic events have\Non people's everyday lives.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [ ] It's tough to manage to have\Nnew ideas on the same thing
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,again and again and again.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,One of the remarkable things
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,about Christy and David's\Nresearch program
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is that they have done that\Nvery successfully.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Narrator] Over 35 years,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Christina has done\Nmeticulous research,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,frequently, with her collaborator\Nand husband, David Romer.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [David] We'll have her paper,\Nand I think it's almost done.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We've worked really hard on it,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and each do one last read.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,She says, "You know,\NI think there's a logical tension
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,between where we end up\Nin Section 4b
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and how we set out\Nwhat we're going to do in Section 2a.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And I'm thinking, "Oh,\Nno one's going to notice."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And we spend weeks more\Non the paper because she's right.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And the paper gets much better.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [ ] One of the remarkable\Nthings about her work
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is the coherence that spans\Nliterally her graduate school days
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and her work on her dissertation,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and connects up to some\Nof her most recent work
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on thinking about\Nways of identifying
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,turning points in the economy.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Narrator] Christina's work\Nwould be put to the test
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,during the devasting crash of 2008,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,when the US economy\Nwas in free fall.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Christina] We often\Ndescribe the economy
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,as at the edge of a cliff.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Well, the truth is, we're not only\Nat the edge of a cliff,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we were headed down.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Financial markets were plunging,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and the risk of contagion\Nfrom the US to the global economy
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,was v ery real.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [ ] Even people who'd see a lot
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,were really worried\Nabout what was happening.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Just as the nation was turning\Nto President-elect Obama
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to confront the economic crisis,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a mysterious email\Nshowed up in Christina'a inbox
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,with the subject line:\N"Obama Transition."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [ ] And I will take a little bit of credit here
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because Christina was just about to delete it,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and I said, "Why don't you at least google fitst."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And she discovered that he was the head of the economic side of the transition.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The Obama administration wanted to meet with Christina as soon as possible.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [ ] On the next day, she was on a plane to Chicago to meet with the President-elect.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Narrator] Christina was asked to chair the Council of Economic Advisers.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The council wa sset up to bring academics into the policy-making process
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and make recommendations to the President.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Christina] I was taking to Rahm Emanuel, and I said,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"So tell me again, how did I get this job?"
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And he said, "You were an expert on the Great Depression,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and we thought we might need one."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Janet] She's tried to understand what caused the Depression,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,what ended the Depression,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,what role monitoring and fiscal policy oculd play
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and no one could be better positioned to know what the right strategy woulf be.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [CHristina] We were talking to bankers,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we were talking to employers,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we were talking to the people that where collecting the statistics.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Marrator] Christina'a research revealed
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that the economy was even more of a perilous position
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,than previously thgoutt.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,SHe got on the phone with Obama to give him the bad news.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Christina] Saying, you going, this is terrible.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We've lost three-quarters of a million jobs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I'm just going on like this, and finally he stops me
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and he said, "Christy, it's not your fault... yet."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [ ] The challenge that CHristy and her team members on the Economic Advisory Team confronted
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,was how large a stimulus the US economy needed
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in order to right the ship
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and trying to calibrate that depended critically on the estimates
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of how much bang for the buck you get
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,when you use fiscal policy as a tool
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and try to then inflate the economy.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Marrator} CHristina helped design a fiscal package
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that she thought was necessary to get the economy moving.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [Gabriel] The American Recovery and Reinvestment Act
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is a piece of legislation that was signed in February of 2009,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and it was a combination of direct government spending,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,so think of repairing highways,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,transfers to State governments,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,transfers to individuals and tax cuts.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And the rationale for it was for the time when households were spending less
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and busniesses were spending less --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that's a time when it's appropriate for government to spend a little more
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to fill in that gap.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The recessions leave long scars,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and people who lose their jobs during recession
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and they're unemployed for a while --
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,even ten years later, often are earning less
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,than they were before the recession occurred.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So by making the case,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,both in acaedemic research, and then as a policymaker,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the government could do more to mitigate recessions
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that really has an impact probably hundreds of thousands of people
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,kept their jobs during the Great Recession
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because hse had become an expert on the behavior of the economy,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on the effects of fiscal policy.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,- [ ] And she was realy passionate about the role that she played
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,after the financial crisis and the Great Recession