Found 205 article(s) for author 'Lawrence Summers'

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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Economy Faces 1 In 3 Chance Of Recession

Economy Faces 1 In 3 Chance Of Recession. Lawrence Summers, January 27, 2016, Audio. “With U.S. stocks off to a dismal start in 2016 and China’s economic growth slowing, Here & Now‘s Jeremy Hobson checks in with Harvard economist Larry Summers. Summers says there’s a 1 in 3 chance the U.S. is heading for a recession. He also says he’s supporting Hillary Clinton for the presidency ...” Link

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Don’t expect four Fed hikes in 2016

Don’t expect four Fed hikes in 2016. Lawrence Summers, January 25, 2016, Video. “The dismal start to financial markets this year, coupled with concerns about the slowdown in China, should keep the Federal Reserve from raising interest rates four times in 2016, as policymakers had forecast last month, former Clinton administration Treasury Secretary Larry Summers said Monday.Link

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Heed the Fears of the Financial Markets

Heed the Fears of the Financial Markets. Lawrence Summers, January 10, 2016, Opinion, “Often markets are volatile at the end of a year and then settle down as a new year begins. Not this year. US and European markets closed lower on Friday after a very rough week despite a strong US jobs report. The week saw dramatic declines in China’s stock market and currency. Oil prices fell even in the face of major tension between Iran and Saudi Arabia. A week when bad market news makes the front page raises two questions. How much should forecasters and policymakers look to speculative markets as indicators of future prospects? And how alarmed should they be about the prospect of a global slowdown? Markets are more volatile than the fundamentals they seek to assess. Economist Paul Samuelson quipped 50 years ago, “the stock market has predicted nine of the last five recessions.” Former Treasury secretary Robert Rubin was right when he would regularly reassure anxious politicos in the Clinton White House that “markets go up, markets go down” on days when a market move created either joy or anxiety …” Link

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The Optimal Maturity of Government Debt

The Optimal Maturity of Government Debt. Robin Greenwood, Samuel Hanson, Lawrence Summers, 2016, Book Chapter. “The central task of debt management is to decide which debt instruments the government should issue in order to finance itself over time. What programs the government should pursue and whether the government should finance its current expenditures by collecting taxes or by borrowing are outside the purview of debt management.  Historically, U.S. debt managers had three main instruments available to them: Trea sury bills with a maturity of less than one year, intermediate-maturity notes with maturities up to ten years, and long-term bonds. Inflation-protected securities were introduced in 1997 and floating-rate notes were added in 2014.Link

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