Found 211 article(s) for author 'Lawrence Summers'

The Fed Shouldn’t Expect People to Trust its Current Approach to the Economy

The Fed Shouldn’t Expect People to Trust its Current Approach to the Economy. Lawrence Summers, August 29, 2016, Opinion, “I had high hopes for the Federal Reserve’s annual conference in Jackson Hole, Wyo. The conference was billed as a forum that would look at new approaches to the conduct of monetary policy — something that I have been urging as necessary, given secular stagnation risks and the sharp decline in the apparent neutral rate of interest. And Chair Janet Yellen’s speech in a relatively academic setting provided an opportunity to signal that the Fed recognized that new realities required new approaches.Link

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What We Need to do to Get Out of this Economic Malaise

What We Need to do to Get Out of this Economic Malaise. Lawrence Summers, August 18, 2016, Opinion, “John Williams has written the most thoughtful piece on monetary policy that has come out of the Federal Reserve in a long time. He recognizes more explicitly than others that, the neutral interest rate, is now very low and quite probably will remain very low for a long time to come.  As he recognizes, this the essence of the secular stagnation concern that I and others have been expressing for the past three years.Link

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Trump Win Would be ‘unsettling’ for Markets

Trump Win Would be ‘unsettling’ for Markets. Lawrence Summers, June 28, 2016, Video. “A Donald Trump presidential victory would be “unsettling” for the markets, said Larry Summers, who served in two Democratic administrations.  Summers, former Clinton administration treasury secretary, told CNBC’s ” Squawk Box ” the nationalistic forces that led to the vote in Britain to leave the European Union make the “the possibility of a Trump victory more real” because his supporters share similar world views.Link

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EU without Brits less Robust

EU without Brits less Robust. Lawrence Summers, June 28, 2016, Video. “Lawrence Summers, Harvard University, shares his thought on what will likely happen after the departure of the United Kingdom from the European Union, including recession concerns for Britain, loss of confidence in the EU and pressure on the U.S. dollar.Link

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Former Treasury Secretary Larry Summers On What ‘Brexit’ Means For The U.S.

Former Treasury Secretary Larry Summers On What ‘Brexit’ Means For The U.S.. Lawrence Summers, June 27, 2016, Audio. “Here & Now’s Jeremy Hobson speaks with former Treasury Secretary and Harvard University president Larry Summers about what “Brexit” might be mean for markets around the world and in the U.S., and whether we are at risk of a recession or other economic downturns.Link

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Comparing Real GDP Across Countries: Comment

Comparing Real GDP Across Countries: Comment. Lawrence Summers, June 24, 2016, Opinion. “The author discusses British economist David Henderson’s article for “Economic Affairs” on using gross domestic product (GDP) measures based on purchasing power parity (PPP) to compare GDP across countries. Topics covered include the relevance of exchange rates in making international economic assessments, Henderson’s criticism of the use of exchange rate-based GDP growth forecasts, and reasons why real international accounts deserve a more prominent place in economic statistics.” Link

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Lawrence Summers on Brexit: A wakeup call for elites

Lawrence Summers on Brexit: A wakeup call for elites. Lawrence Summers, June 24, 2016, Audio. “There’s a context slice of the Brexit story that we need to get to before the day is done — the place that Thursday’s vote has in the global economy, and in history, really. Former Treasury Secretary Larry Summers wrote a quick post last night for The Washington Post. We got him on his cell phone Friday to talk more about it:  What do the events of last night mean for globalism in the long run?  I think this is probably the worst self-inflicted policy wound that a country has done since the Second World War. My hope is that this will be a wake up call for elites everywhere, on the need to develop a responsible nationalism. But the best way forward is not denial, is not railing against the folly of the electorate, it’s seeking to design an approach, approaches to economic policy that hear the anger that’s being expressed in this vote.Link

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Secular Stagnation and Monetary Policy

Secular Stagnation and Monetary Policy. Lawrence Summers, 2016, Paper. “I have been engaged in thinking, writing, provoking, and analyzing around the issue of secular stagnation: the issue of protracted sluggish growth, why it seems to be our experience, and what should be done about it.1 This paper summarizes my current thinking on those topics and reflects on the important limits monetary policy experiences in dealing with secular stagnation.Link

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A Contagious Malady? Open Economy Dimensions of Secular Stagnation

A Contagious Malady? Open Economy Dimensions of Secular Stagnation. Lawrence Summers, June 2016, Paper, “Conditions of secular stagnation – low interest rates, below target inflation, and sluggish output growth – characterize much of the global economy. We consider an overlapping generations, open economy model of secular stagnation, and examine the effect of capital flows on the transmission of stagnation. In a world with a low natural rate of interest, greater capital integration transmits recessions across countries as opposed to lower interest rates. In a global secular stagnation, expansionary fiscal policy carries positive spillovers implying gains from coordination, and fiscal policy is self-financing. Expansionary monetary policy, by contrast, is beggar-thy-neighbor with output gains in one country coming at the expense of the other. Similarly, we find that competitiveness policies including structural labor market reforms or neomercantilist trade policies are also beggar-thy-neighbor in a global secular stagnation.” Link

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The Fusion of Civilizations: The Case for Global Optimism

The Fusion of Civilizations: The Case for Global Optimism. Lawrence Summers, 2016, Paper. “The mood of much of the world is grim these days. Turmoil in the Middle East, causing hundreds of thousands of deaths and millions of refugees; random terrorist attacks across the globe; geopolitical tensions in eastern Europe and Asia; the end of the commodity supercycle; slowing growth in China; and economic stagnation in many countries-all have combined to feed a deep pessimism about the present and, worse, the future. Historians looking back on this age from the vantage point of later generations, however, are likely to be puzzled by the widespread contemporary feelings of gloom and doom …” Link

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