Found 79 article(s) for author 'Martin Feldstein'

How EU Overreach Pushed Britain Out

How EU Overreach Pushed Britain Out. Martin Feldstein, June 18, 2016, Opinion. “A thoughtful British friend of mine said to me a few days before the United Kingdom’s “Brexit” referendum that he would vote for Remain because of his concern about the economic uncertainty that would follow if the UK left the European Union. But he added that he would not have favored Britain’s decision to join the EU back in 1973 had he known then how the EU would evolve.Link

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Reducing Long Term Deficits

Reducing Long Term Deficits. Martin Feldstein, May 26, 2016, Paper. “The most serious long-term challenge for the economic policy of the US Federal government is the explosive growth of the national debt that will occur unless there are specific policy actions. The ratio of the federal government debt to the GDP has doubled in the past decade from a level of less than 40 percent that prevailed for many years before the recent recession to 75 percent of GDP now. According to the most recent report by the Congressional Budget Office (2016), the debt ratio is already beginning to rise. The CBO projects that with current policies the debt to GDP ratio will reach 86 percent within ten years and the federal debt will be on its way to 155 percent of GDP by the year 2045. I suspect that even this disturbing forecast is too optimistic because a debt trajectory like that is likely to cause portfolio investors in the United States and elsewhereto conclude that the U.S. government has lost control of its fiscal policy …” Link

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A Debt Agenda for the G7

A Debt Agenda for the G7. Martin Feldstein, May 23, 2016, Opinion. “On May 26-27, the heads of the Group of Seven leading industrial countries will gather in Japan to discuss common security and economic problems. A major common problem that deserves their attention is the unsustainable increase in the major developed countries’ national debt. Failure to address the explosion of government borrowing will have adverse effects on the global economy and on debt-burdened countries themselves.Link

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Ending the Fed’s Inflation Fixation

Ending the Fed’s Inflation Fixation. Martin Feldstein, May 17, 2016, Opinion, “The primary role of the Federal Reserve and other central banks should be to prevent high rates of inflation. The double-digit inflation rates of the late 1970s and early ’80s were a destructive and frightening experience that could have been avoided by better monetary policy in the previous decade. Fortunately, the Fed’s tighter monetary policy under Paul Volcker brought the inflation rate down and set the stage for a strong economic recovery during the Reagan years.Link

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Dealing with Long Term Deficits

Dealing with Long Term Deficits. Martin Feldstein, January 2016, Paper. “The United States economy is now in good shape. We are essentially at full employment with the overall unemployment rate at 5.0 percent and the unemployment rate among college graduates at a very low 2.5 percent. The near zero overall rate of inflation is distorted by the sharp decline in energy prices. The core CPI inflation rate that excludes the prices of energy and food has increased by 2.0 percent over the past 12 months. The growth of demand in 2016 will be limited by the absence of excess capacity in the economy rather than by a lack of demand. Household spending will support real domestic demand growth of two percent or more because real earnings are rising at two percent, house prices are increasing in real terms, and employment prospects are good …” Link

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The Uncounted Trillions in the Inequality Debate

The Uncounted Trillions in the Inequality Debate. Martin Feldstein, December 13, 2015, Opinion. “The Federal Reserve recently estimated total household net worth in the U.S. to be about $80 trillion, including real estate and financial assets. And data from the Fed’s Survey of Consumer Finances imply that the top 10% of households by net worth hold about 75%—or $60 trillion—of this total. The bottom 90% of households therefore have a net worth of about $20 trillion …Link

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Martin Feldstein: Chinese economy and Fed policy

Martin Feldstein: Chinese economy and Fed policy. Martin Feldstein, October 12, 2015, Opinion. “Janet Yellen’s speech on September 24 at the University of Massachusetts clearly indicated that she and the majority of the members of the Federal Reserve’s Federal Open Market Committee (FOMC) intend to raise the short-term interest rate by the end of 2015. It was particularly important that she explicitly included her own view, unlike when she spoke on behalf of the entire FOMC after its September meeting. Nonetheless, given the Fed’s recent history of revising its policy position, markets remain sceptical about the likelihood of a rate increase…Link

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A Tax Boon for Working Women

A Tax Boon for Working Women. Martin Feldstein, October 5, 2015, Opinion. “The U.S. tax code is unfair to women who work. It also discourages women from working and from obtaining the skills that would lead to higher wages. In addition, there is a ‘marriage penalty’ for many working couples with either very low incomes or very high incomes who face a tax increase if they marry. The tax plan released last month by Republican presidential candidate Jeb Bush would correct these unfair rules…Link

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