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

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 Although his book The Rise and Fall of American Growth will not be published until January 2016, his thesis has already garnered coverage in the Economist and Foreign Affairs.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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The U.S. Underestimates Growth; The official statistics are missing changes that are lifting American incomes.

The U.S. Underestimates Growth; The official statistics are missing changes that are lifting American incomes. Martin Feldstein, May 18, 2015, Opinion. “Today’s pessimists about the economy’s rate of growth are wrong because the official statistics understate the growth of real GDP, of productivity, and of real household incomes. Understanding this problem should change the political debate about income growth and income inequality. But it should not change the focus on what matters: policies to increase everyone’s real incomes even faster.” Link

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America’s Risky Recovery

America’s Risky Recovery. Martin Feldstein, April 28, 2015, Opinion. “The United States’ economy is approaching full employment and may already be there. But America’s favorable employment trend is accompanied by a substantial increase in financial-sector risks, owing to the excessively easy monetary policy that was used to achieve the current economic recovery. The overall unemployment rate is down to just 5.5%, and the unemployment rate among college graduates is just 2.5%. The increase in inflation that usually occurs when the economy reaches such employment levels has been temporarily postponed by the decline in the price of oil…” Link

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We Don’t Need Fiscal Stimulus at This Point: Feldstein

We Don’t Need Fiscal Stimulus at This Point: Feldstein. Martin Feldstein, April 13, 2015, Video. “Martin Feldstein, an economics professor at Harvard University, talks about the outlook for the U.S. economy and Federal Reserve policy. He speaks with Tom Keene and Olivia Sterns on Bloomberg Television’s “Surveillance.” Langer Research’s Gary Langer also speaks.” Link

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