What do you teach at Harvard? Could you briefly describe the material?

"I teach Ec 10 (Social Analysis 10), Principles of Economics, a beginning economics college class. It provides a basic framework of analysis for economics: how to think about and analyze the economy."

How did you become interested in what you do today?

"I was always interested in things like the stock market, companies, why they grow, how they figured out strategy, all that stuff. When I was young, I wondered about the way companies work and what they do. Economics provides the structured, rigourous framework to investigate such questions."

The concept of "economy" is often hard to grasp. In simple terms, what is the economy to you?

"The economy is the sum total of all activities through which people provide themselves with goods and services."

Do you think studying economics is important? Who should, and why?

"Everybody! Economics is important because it is empowering. Knowledge is power. It gives you a framework to analyze a really significant chunk of the world. For example, why your father was laid off, or what are your job prospects. It's also a means to think about your citizenship in society in terms of decision-making in government policy. You need to be informed to make good decisions."

Can you give a recent example of how economics has affected the world around us?

"Interest rates is a good example.  They've steadily fallen in the last several years, so it's a lot easier for kids to buy a car. Loans don't cost nearly as much!"

Economics places special importance in trading. Why is it so important?

"Trading is the means by which we can get ride of things we have and don't want, and get what we want, but don't have. It's the idea of comparative advantage. For example, Michael Jordon may make millions playing basketball, but he probably couldn't build a computer. He can do what he's good at, and use that money to "trade" for a computer that some other "specialist" makes. Otherwise, even Jordon wouldn't have a computer."

How has trade impacted the world today?

"Enormously. We can consue goods and services that without trade, there would be no way we could consume. Every time you eat a banana, drive a Toyota, use a Dell computer, you are consuming something made elsewhere. (Many Dells are built in Taiwan.) Trade provides a vastly larger, richer array of products than if people relied just on themselves."

Can you give an example of how globalization has affected the world? Is it a good thing?

"All evidence has lead to the conclusion that globalization is good. Economic growth is so important. It's a matter of life and death for a lot of people in the world. Whether or not their countries grow is critical. East Asian economies, Taiwan, Singapore, etc., started incredibly poor around the 1950s, but after growing 50 years at a high rate, their people have higher standards of living, eradicated common diseases, and live longer, healthier lives. All this is due to economic growth, of which globalization has been instrumental."

If you could give today's youth one piece of advice, what would it be?

"Think for yourself on all issues, particularly economic issues, and not be influenced by what everybody else thinks. Don't blindly follow fashion in terms of what you think. Be curious about the way the world works. To understand it is to acquire power."