Found 412 article(s) for author 'Monetary Policy'

‘It’s crazy for a president to wrap himself in the stock market’

‘It’s crazy for a president to wrap himself in the stock market. Lawrence Summers, November 8, 2017, Audio, “Larry Summers thinks it’s “crazy” that President Donald Trump spends so much time bragging about how great he’s been for the stock market.  The former Treasury secretary and current Harvard professor argues that Trump, who tweets regularly about new stock market records, is setting himself up for a crushing blow if markets tumble.Link

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Three (almost) inexplicable parts of the Republican tax plan

Three (almost) inexplicable parts of the Republican tax plan. Lawrence Summers, November 5, 2017, Opinion, “With the release of the Republican tax proposal, the most important tax debate in a generation is in full swing. Most reasonable experts agree that tax reform has the potential to spur investment and raise wages while also simplifying the system and increasing its fairness and legitimacy. The right question for debate is not the desirability of tax reform or even of business tax reform directed at spurring investment. It is the likely economic effect of particular proposals.Link

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US Fed chair’s biggest problem will be staying out of Trump’s shadow

US Fed chair’s biggest problem will be staying out of Trump’s shadow. Kenneth Rogoff, November 3, 2017, Opinion, “With the appointment of Jerome Powell as the next chair of the United States Federal Reserve, Donald Trump has made perhaps the most important single decision of his presidency. It is a sane and sober choice that heralds short-term continuity in Fed interest rate policy, and perhaps a simpler and cleaner approach to regulatory policy.Link

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Global Trade and the Dollar

Global Trade and the Dollar. Gita Gopinath, November 2017, Paper, “We document that the U.S. dollar exchange rate drives global trade prices and volumes. Using a newly constructed data set of bilateral price and volume indices for more than 2,500 country pairs, we establish the following facts: 1) the dollar exchange rate quantitatively dominates the bilateral exchange rate in price pass-through and trade elasticity regressions. U.S. monetary policy induced dollar fluctuations have high pass-through into bilateral import prices. 2) Bilateral noncommodities terms of trade are essentially uncorrelated with bilateral exchange rates. 3) Œe strength of the U.S. dollar is a key predictor of rest-of-world aggregate trade volume and consumer/producer price inflation.” Link

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The Fed shortlist: who will hold the second most important job in the US?

The Fed shortlist: who will hold the second most important job in the US? Jeffrey Frankel, October 27, 2017, Opinion, “US President Donald Trump’s administration is expected, by 2 November, to announce its choice, subject to Senate approval, to succeed Janet Yellen as chair of the Federal Reserve Board in February 2018. The White House has indicated it is weighing up five potential candidates. Not all of them would be a good choice.Link

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What I do support in a new tax plan

What I do support in a new tax plan. Lawrence Summers, October 25, 2017, Opinion, “I have been very sharply critical of what I regard as unprofessional exaggeration by advocates of the Trump tax proposal. Reasonably enough, people have asked what I am for. I strongly support tax reform in general and especially corporate tax reform on the model of the highly successful bipartisan 1986 tax reform, which achieved very large rate reductions, spurred economic growth and improved the efficiency of the economy while being revenue- and distribution-neutral.Link

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The Business Roundtable’s outlandish tax cut claims

The Business Roundtable’s outlandish tax cut claims. Lawrence Summers, October 23, 2017, Opinion, “I think of myself as pro-business. I frequently counseled the Obama administration that “business confidence is the cheapest form of stimulus,” and during my times in government have found meetings with business leaders very helpful in understanding economic policy challenges. So when the Business Roundtable (BRT) does an analysis, I pay close attention.Link

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One last time on who benefits from corporate tax cuts

One last time on who benefits from corporate tax cuts. Lawrence Summers, October 22, 2017, Opinion, “I recently asserted that Kevin Hassett deserved a failing grade for his “analysis” projecting that the Trump administration proposal to reduce the corporate tax rate from 35 to 20 percent would raise the wages of an average American family between $4,000 to $9,000. I chose harsh language because Hassett had, for what seemed like political reasons, impugned the integrity of people like Len Burman and Gene Steuerle who have devoted their lives to honest rigorous evaluation of tax measures by calling their work “scientifically indefensible” and “fiction.” Since there have been a variety of comments on the economics of corporate tax reduction, some further discussion seems warranted.Link

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