Found 465 article(s) in category 'Fiscal Policy'

Trump’s CEOs Resigned. His Cabinet Should do the Same

Trump’s CEOs Resigned. His Cabinet Should do the Same. Lawrence Summers, August 17, 2017, Opinion, “President Trump, recognizing the inevitable, has disbanded his business advisory councils to preempt the tidal wave of resignations that was in the offing. Given my long-standing views about chief executives lending legitimacy to the Trump administration, I was delighted that a group of CEOs forced this step.Link

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Rising Medical Costs Mean More Rough Times Ahead

Rising Medical Costs Mean More Rough Times Ahead. David Cutler, August 8, 2017, Opinion, “Medical costs are rising again, after recent years of historic lows. As the figure shows, growth rates of real per person medical spending in the past 3 years have averaged 3.4% annually, up from 0.9% in 2011 to 2013. Although the current growth rate is low in a historical context, it exceeds the economy’s growth as a whole. Thus, health costs are expected to reappear on the radar screen of governments, businesses, and households.Link

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The Ricardian Approach to Budget Deficits

The Ricardian Approach to Budget Deficits. Robert Barro, 2017, Book Chapter, “In recent years there has been a lot of discussion about US budget deficits. Many economists and other observers have viewed these deficits as harmful to the US and world economies. The supposed harmful effects include high real interest rates, low saving, low rates of economic growth, large currentaccount deficits in the United States and other countries with large budget deficits, and either a high or low dollar (depending apparently on the time period).” (Reprint from 1989) Link

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What history tells us about Trump’s budget fantasy

What history tells us about Trump’s budget fantasy. Lawrence Summers, May 30, 2017, Opinion, “At the risk of beating a dead horse, here are some thoughts on the Trump administration’s 3 percent growth forecast. Zero interest rates seemed inconceivable 15 years ago, and yet they happened. Almost no one forecast the productivity boom that took place in the United States between 1995 and 2005 or the magnitude of the 2008 financial crisis. So any statement that a given forecast is inconceivable is unwarranted.Link

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Trump’s Magic Budget

Trump’s Magic Budget. Carmen Reinhart, May 29, 2017, Opinion, “US President Donald Trump’s administration has now released its budget plans for fiscal year 2018. Among the details provided in the document, entitled America First – A Budget Blueprint to Make America Great Again, are projections for the expected path of gross federal debt as a percentage of GDP, which is shown to decline from its current level of about 106% to about 80% in 2027. Debt held by the public is expected to mirror this path, shrinking from 77% to 60% over this period.Link

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The Effects of Fiscal Consolidations: Theory and Evidence

The Effects of Fiscal Consolidations: Theory and Evidence. Alberto Alesina, May 2017, Paper, “We investigate the macroeconomic effects of fiscal consolidations based upon government spending cuts, transfers cuts and tax hikes. We extend a narrative dataset of fiscal consolidations, finding details on over 3500 measures. Government spending and transfer cuts reduce output by less than tax hikes. Standard New Keynesian models match our results when fiscal shocks are persistent. Wealth effects on aggregate demand mitigates the impact of a persistent spending cut. Static distortions caused by persistent tax hikes cause larger shifts in aggregate supply under sticky prices. This channel explains different sizes of multipliers found in fiscal stimuli compared to consolidation plans.Link

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No Idea What Trump Means by Reciprocal Tax

No Idea What Trump Means by Reciprocal Tax. Martin Feldstein, May 3, 2017, Video, “Martin Feldstein, professor of economics at Harvard University, discusses his thoughts on tax policy and the Trump administration. He speaks with Bloomberg’s David Westin and Jonathan Ferro on “Bloomberg Daybreak: Americas.” (Source: Bloomberg)” Two Parts –  Link  1 “Reciprocal Tax” Link 2 – “Big Issue is Tax Reform

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Subsidizing Health Insurance for Low-Income Adults: Evidence from Massachusetts and Implications for Future Health Reforms

Subsidizing Health Insurance for Low-Income Adults: Evidence from Massachusetts and Implications for Future Health Reforms. Nathaniel Hendren, Mark Shepard, May 2017, Paper, “How much are low-income individuals willing to pay for health insurance? What are the implications for insurance market reforms that change government subsidies? Using administrative data from Massachusetts’ subsidized insurance exchange in 2009-2013, we exploit discontinuities in the premium subsidy schedule to estimate willingness to pay and costs of insurance among low-income adults. We obtain three main results…Link

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