Economics and International Affairs Blog

Tuesday, September 1, 2026

‘If you build something vastly smarter than you, it better be on your side’: can we stop AI from deceiving us?
https://www.theguardian.com/news/2026/sep/01/if-you-build-something-vastly-smarter-than-you-it-better-be-on-your-side-can-we-stop-ai-from-deceiving-us
We are used to the idea that our fellow humans might intentionally mislead or manipulate us, but the idea that machines can now do the same is deeply unsettling. Researchers are racing to find solutions before it’s too late.

The search for consciousness inside AI
https://www.economist.com/interactive/briefing/2026/08/20/the-search-for-consciousness-inside-llms
Scientists are trying to figure out whether algorithms could one day wake up and feel.

There Are Four Forces Pressuring Bonds: War Is No. 1
https://www.wsj.com/finance/investing/there-are-four-forces-pressuring-bonds-war-is-no-1-68d3ace9
Fiscal worries, a new Federal Reserve chairman and even the flood of AI bonds are helping drive the recent climb in yields.

The Bond Market Issues World Leaders a Failing Grade
https://www.wsj.com/economy/the-bond-market-issues-world-leaders-a-failing-grade-621cf4dc
Nothing in this week’s G-20 suggested an end to the deficits, inflation and geopolitical disruptions that are roiling investors.

Borrowing Isn’t the Bond Market’s Only Concern—Growth Is Too
https://www.wsj.com/finance/investing/borrowing-isnt-the-bond-markets-only-concerngrowth-is-too-91596036
Many governments look more prudent than the U.S. right now, but aging workforces and anemic growth mean debts look scary.

Global Bond Sell-Off Puts Investors on Edge
https://www.nytimes.com/2026/09/01/business/bond-yields-debt.html
Government borrowing costs are hitting multi-decade highs around the world, reflecting anxiety about debt levels, deficits and inflation.

Bond Yields Around the World Soar in Challenge to Government Borrowing
https://www.wsj.com/finance/investing/bond-yields-around-the-world-soar-in-challenge-to-government-borrowing-c519c53f
The runup in interest rates has profound consequences for the global economy, heaping pressure on everyone from home buyers to governments.

How to understand the current puzzle in bonds and equities
https://www.ft.com/content/b189d31a-5e56-471e-91d1-c319aa68f174

The Rich World’s Climate Distraction
https://www.wsj.com/opinion/the-rich-worlds-climate-distraction-fe33cf14
The World Bank and other institutions lose their focus on the best ways to help the poor.

The U.S. Economy Depends on Thriving Cluster Cities
https://www.fa-mag.com/news/the-us-economy-depends-on-thriving-cluster-cities-88288.html

The extraordinary rise of Miami’s economy
https://www.economist.com/finance-and-economics/2026/08/31/the-extraordinary-rise-of-miamis-economy
Thanks to a combination of capital and politics, the city is booming. Can its success be sustained?

Are graduates prepared for the AI era? | FT
https://youtu.be/EsdqCEuoI8M

A Society of Cheats
https://www.theatlantic.com/ideas/2026/08/ai-use-college-cheat/688451/
Students’ use of AI is teaching them to cut corners, disdain rules, and believe that integrity is for suckers and wimps.

The Summer That Scorched French Grapes, English Gardens—and Europe’s Economy
https://www.wsj.com/world/europe/the-summer-that-scorched-french-grapes-english-gardensand-europes-economy-a7b33771
Record heat withered crops, strained businesses and upended everyday life. The changes happened faster than anyone expected.

The Strongest El Niño in a Generation Is Wreaking Havoc on Global Economy