Posts Tagged ‘ Fiscal Policy ’

I don't have any grand, new points to make here, they've all been made before, I just want to point out that the idea of "public goods" and the need for government to provide them has been lost in discussions...
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The Fed has been under considerable pressure recently by those, me among them, who believe the Fed should use quantitative easing to lower long-term interest rates. However, a temporary investment tax credit can provide the same incentives for business investment...
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Will a payroll tax cut stimulate the economy? I am going to answer this in the context of Gauti B. Eggertsson' paper "What Fiscal Policy Is Effective at Zero Interest Rates?" where this question is addressed directly (the analysis begins...
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When Obama announces his new measures to boost the economy next week, will he learn from the mistakes he made the first time?: The Real Story, by Paul Krugman, Commentary, NY Times: Next week, President Obama is scheduled to propose...
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Using a model that allows multipliers to vary over the business cycle, Alan Auerbach and Yuriy Gorodnichenko find that the fiscal stimulus multiplier is greater than one in recessions: The return from a fiscal stimulus – the fiscal multiplier –...
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Here's a summary of:Christina Romer’s Farewell AddressI also explain one reason I'm so furstrated with fiscal policymakers.
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I have a new column up at the Fiscal Times: Insulating Fiscal Policy from a Dysfunctional Congress: The economic crisis has made two things clear. First, monetary policy won’t always be capable of stabilizing the economy on its own. When...
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Karl Whelan identifies the questionable assumptions used by Jean Claude Trichet to support his calls for austerity: Trichet on Ricardian Equivalence, by Karl Whelan: Jean Claude Trichet’s Jackson Hole speech is here. This bit caught my eye: The economy, it...
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Clive Crook: It falls to the Fed to fuel recovery, by Clive Crook, Commentary, Financial Times: The US recovery is stalling. As a matter of economics the balance of risks strongly favors further fiscal and monetary stimulus. Politics appears to...
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Laura Tyson makes the case for more stimulus spending: Why We Need a Second Stimulus, by Laura Tyson, Commentary, NY Times: Our national debate about fiscal policy has become skewed, with far too much focus on the deficit and far...
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