SAET Conference Brought Together More Than 300 Participants at IMPA

The 25th Conference of the Society for the Advancement of Economic Theory (SAET) concluded last Saturday (the 18th) at IMPA, with tributes to Aloisio Araujo, a researcher emeritus at the Institute and professor at the Getúlio Vargas Foundation (FGV). Right at the start of the proceedings, Sérgio Werlang (FGV) recalled Aloisio’s academic career and his work in bridging the gap between economic theory and concrete social issues.

“Aloisio tried to work in both economics and statistics, in very abstract fields. But he wasn’t satisfied with just these theoretical obligations. He saw the need to help the Brazilian economy first,” said Werlang.

He also highlighted Aloisio’s role in training researchers. “He is a teacher to many, many generations of Brazilians. He has contributed substantially to the advancement of the academic and economic communities in Brazil and abroad.”

In addition to the tribute, the final day of SAET featured presentations by researchers such as Andreu Mas-Colell (Pompeu Fabra University), Timothy J. Kehoe (University of Minnesota), Felix Kübler (University of Zurich), and José Scheinkman (Columbia University).

Woodford Discusses Fiscal Sustainability and Macroeconomic Stability

One of the highlights of the program was the presentation by Woodford (Columbia University). The American economist highlighted his longstanding relationship with Aloisio and stated that the work presented was consistent with a defining feature of the honoree’s career: the use of rigorous economic models to address practical public policy issues.

“Aloisio, in addition to being a very profound economic theorist, had a strong interest throughout his career in using economic theory to address very practical questions of public policy, while seeking to demonstrate that rigorous models could help elevate these discussions,” said Woodford.

The lecture explored the interaction between fiscal policy and monetary policy and how different approaches to implementing these policies can affect macroeconomic stability. Woodford focused in particular on the role of expectations regarding public debt and governments’ commitment to fiscal sustainability.

“The question of whether fiscal sustainability is guaranteed or not is about what we think fiscal policy will do over the next decade. It’s a question of what people believe the policy promises to do in the infinitely distant future,” said Woodford.

Over the course of six days of discussions, the 25th Conference of the Society for the Advancement of Economic Theory (SAET) brought together more than 300 participants—including researchers, professors, and students from various countries—for more than 70 academic presentations on central themes in contemporary economic theory. The conference also celebrated Aloisio Araujo’s 80th birthday, recognizing his contributions to mathematical economics and to the training of generations of researchers.

“It’s a unique opportunity to learn about the latest research being conducted around the world in economic theory. Professor Aloisio is a major influence on everyone working in economic theory,” said participant Christian Rodríguez, who holds a master’s degree in Applied Mathematics from IMPA and is a former student of Araujo.

This view was also shared by Gil Joffily Ribas, an undergraduate student at UFMG (Federal University of Minas Gerais), who was already familiar with IMPA through the Summer School. “I thought that, since it was an IMPA event, it would be difficult to follow the lectures. In fact, the topics are quite advanced, but I managed to take in a lot. The event far exceeded my expectations.”

Camila Lima Silva, a doctoral student at UERJ, highlighted the opportunity to forge new academic connections during the meeting. “It’s very important to meet people from other institutions and other countries. This exchange brings knowledge closer together and allows us to see, in a more practical way, what we study in the classroom.”

In addition to the participating researchers and students, SAET also relied on IMPA Tech undergraduates to serve as volunteers for the conference. “I wanted to experience helping organize a major event with Nobel laureates, gain exposure to a field I don’t have much experience with—economics—meet people from all over the world, and practice my English. It was a great experience. We realized that, when we don’t participate in scientific events, they seem very difficult, but they’re actually easier than we think. It’s good for us to get used to them throughout our undergraduate studies and feel like part of the scientific community,” said Marcella Decembrino.