Found 201 article(s) for author 'Lawrence Summers'

Secular Stagnation in the Open Economy

Secular Stagnation in the Open Economy. Lawrence Summers, April 2016, Paper. “Conditions of secular stagnation – low interest rates, below target inflation, and sluggish output growth – now characterize much of the global economy. We consider a simple two-country textbook model to examine how capital markets transmit secular stagnation and to study policy externalities across countries. We find capital flows transmit recessions in a world with low interest rates and that policies that trigger current account surpluses are beggar-thy-neighbor. Monetary expansion cannot eliminate a secular stagnation and may have beggar-thy-neighbor effects, while sufficiently large fiscal interventions can eliminate a secular stagnation and carry positive externalities.Link

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Larry Summers: The prospect of Donald Trump being president is the gravest threat to America

Larry Summers: The prospect of Donald Trump being president is the gravest threat to America, April 14, 2016, Video. “Former Treasury Secretary Larry Summers spoke at the International Monetary Fund on Wednesday, warning against austerity measures amid a tepid economy.  Yahoo Finance sat down with him to get little more color on the economy and to find out what keeps him up most at night.  “I think the prospect of Donald Trump being President would be the gravest threat to our prosperity, our security, and our freedom in my adult lifetime,” Summers said. “That’s the thing I would worry most about.”Link

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Larry Summers on Economic Unease and America’s Slow Growth

Larry Summers on Economic Unease and America’s Slow Growth. Lawrence Summers, April 8, 2016, Audio. “This week, we’ve been looking at the state of the global economy as part of our series, “The 2016 Economic Fog: Finding a Way Forward,” in partnership with Charlie Herman, business and economics editor for our partner station WNYC and host of “Money Talking.”  We’ve looked at how oil prices are affecting buying power for everyday people, and just how worried analysts are about unease in China and Europe. And while our guests have been somewhat optimistic on global economic prospects, many of our listeners have expressed anxiety with their personal economic status.Link

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Based On Current Data, Fed Should Not Raise Rates

Based On Current Data, Fed Should Not Raise Rates. Lawrence Summers, March 31, 2016, Audio. “The stock market reacted positively this week to comments from Federal Reserve Chair Janet Yellen. She called the economy’s performance this year somewhat mixed, but she said growth is on track and it is “appropriate for the committee to proceed cautiously in adjusting policy.”Link

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In Defense of Killing the $100 Bill

In Defense of Killing the $100 Bill. Lawrence Summers, February 25, 2016, Opinion. “Our advocacy for ending the printing of high denomination notes — first in a working paper by Peter and colleagues and, later in a post by Larry — have been attacked on the ground that this proposal represents an infringement on liberty (for example, see here and here). Most prominently, the Wall Street Journal concludes an editorial with the remarkable assertion: “Beware politicians trying to limit the way you can conduct private economic business. It never turns out well.”Link

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It’s Time to Kill the $100 Bill

It’s Time to Kill the $100 Bill. Lawrence Summers, February 18, 2016, Opinion. “Harvard’s Mossavar Rahmani Center for Business and Government, which I am privileged to direct, has just issued an important paper by senior fellow Peter Sands and a group of student collaborators. The paper makes a compelling case for stopping the issuance of high denomination notes like the 500 euro note and $100 bill or even withdrawing them from circulation.Link

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The Age of Secular Stagnation

The Age of Secular Stagnation. Lawrence Summers, February 16, 2016, Paper. “As surprising as the recent financial crisis [1] and recession were, the behavior of the world’s industrialized economies and financial markets during the recovery [2] has been even more so. Most observers expected the unusually deep recession to be followed by an unusually rapid recovery, with output and employment returning to trend levels relatively quickly. Yet even with the U.S. Federal Reserve [3]’s aggressive monetary policies, the recovery (both in the United States and around the globe) has fallen significantly short of predictions and has been far weaker than its predecessors [4]. Had the American economy performed as the Congressional Budget Office fore­cast in August 2009—after the stimulus had been passed and the recovery had started—U.S. GDP today would be about $1.3 trillion higher than it is.Link

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No Free Lunches but Plenty of Cheap Ones

No Free Lunches but Plenty of Cheap Ones. Lawrence Summers, February 8, 2016, Opinion. “Tradeoffs have long been at the centre of economics. The aphorism “there is no such thing as a free lunch” captures a central economic idea: you cannot get something for nothing. Among the many tradeoffs emphasised by economists are guns v butter, public v private, efficiency v equity, quality v quantity or cost and short-term v long-term performance.Link

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