Found 82 article(s) for author 'Martin Feldstein'

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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Will Americans Become Poorer?

Will Americans Become Poorer? Martin Feldstein, August 31, 2015, Opinion. “Robert Gordon of Northwestern University has launched a lively and important debate about the future rate of economic growth in the United States. Although his book The Rise and Fall of American Growth will not be published until January 2016, his thesis has already garnered coverage in the Economist and Foreign Affairs. Clearly, Gordon’s gloomy assessment of America’s growth prospects deserves to be taken seriously. But is it right? Gordon argues that the major technological changes that raised the standard of living in the past are much more important…” Link

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The Fed’s Stock-Price Correction

The Fed’s Stock-Price Correction. Martin Feldstein, August 24, 2015, Opinion. “The unfolding stock-market collapse—the Dow Jones Industrial Average plummeted more than 1,000 points on Monday morning, rebounding later to nearly 600 points down, following several days of decline last week—is the inevitable result of the Federal Reserve’s policies, namely quantitative easing that produced abnormally low interest rates. The decline on Wall Street has spread to every stock market on the globe, many of which were also weakened by their own policies of excessively easy money. When the Obama administration’s poorly designed 2009 stimulus…” Link

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Are US Middle-Class Incomes Really Stagnating?

Are US Middle-Class Incomes Really Stagnating? Martin Feldstein, July 30, 2015, Opinion. “The challenge of raising the incomes of middle-class families has emerged as an important focus of the presidential election campaign in the United States. Everyone agrees that incomes at the top have surged ahead in recent decades, helped by soaring rewards for those with a high-tech education and rising share prices. And there is general support for improving programs – such as food stamps and means-tested retiree benefits – that help those who would otherwise be poor. But the public debate is largely about how to help the more numerous (and politically more important) middle class…Link

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America’s Next Economic Crisis?

America’s Next Economic Crisis? Martin Feldstein, June 4, 2015, Opinion. “The u.s. economy has, by and large, recovered from the financial crisis of 2008–09. The Federal Reserve’s strategy of keeping interest rates exceptionally low led to rebounds in the stock market, housing prices and consumer demand, which in turn chipped away at unemployment. The difficulty now is getting the economy to grow again while the Fed returns interest rates to normal. The Fed’s challenge is made more complex by the negative effects of both short- and long-term interest rates being so low, which have induced investors and lenders to take additional risks…Link

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The Inflation Puzzle

The Inflation Puzzle. Martin Feldstein, May 29, 2015, Opinion. “The low rate of inflation in the United States is a puzzle, especially to economists who focus on the relationship between inflation and changes in the monetary base. After all, in the past, increases and decreases in the growth rate of the monetary base (currency in circulation plus commercial banks’ reserves held at the central bank) produced – or at least were accompanied by – rises and falls in the inflation rate. And, because the monetary base is controlled directly by the central bank, and is not created by commercial banks, many believe that it is the…” Link

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An Economic Checkup

An Economic Checkup. Martin Feldstein, May 28, 2015, Opinion. “The US economy is at a critical juncture. The Federal Reserve’s very easy monetary policy during the past few years has been the root of both good and ill: reduced unemployment on the one hand and increased financial risks an the other. The danger now is that the inevitable rise in interest rates over the next few years could cause substantial losses to banks and investors that, in turn, could weaken the economy’s overall performance and lead to another economic downturn. Here, Feldstein examines the state of US’ economy…Link

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