Found 528 article(s) in category 'Fiscal Policy'

The Shutdown Could Disrupt The U.S. Economy In A Big Way

The Shutdown Could Disrupt The U.S. Economy In A Big Way. Nancy Koehn, January 8, 2019, Audio, “Will the government shutdown have a long-term impact on the U.S. economy? Nancy Koehn, professor at the Harvard Business School, said that the shutdown could disrupt the economy on both a micro and macro level. “What’s interesting to me as someone who has done a lot of economic work is how we’re beginning to see the cascading consequences,” she said on Boston Public Radio Tuesday. There are individual pains — like farmers not being able to get loans or aid to help cope with the U.S.-China trade war.Link

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To avoid government shutdowns, fix the budget process

To avoid government shutdowns, fix the budget process. Linda Bilmes, January 7, 2019, Opinion, “In the musical “Hamilton,” the protagonists riff on dueling: Aaron Burr: Can we agree that duels are dumb and immature? Alexander Hamilton: Sure. But your man has to answer for his words, Burr. (As we all know, Burr fatally shot Hamilton. Duels were not outlawed until 40 years later). Pressley requests back pay for federal contract workers.  The furloughed contract workers have gone without a paycheck since the start of a partial government shutdown last month. Federal government shutdowns are the modern equivalent of duels — a dumb and immature way to resolve disputes. The current shutdown has closed 25 percent of the government over a dispute that amounts to just .001 percent of the federal budget.Link

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Corruption, Government Subsidies, and Innovation: Evidence from China

Corruption, Government Subsidies, and Innovation: Evidence from China. Josh Lerner, 2018, Paper, “Governments are important financiers of private sector innovation. While these public funds can ease capital constraints and information asymmetries, they can also introduce political distortions. We empirically explore these issues for China, where a quarter of firms’ R&D expenditures come from government subsidies. Using a difference-in-differences approach, we find that the anticorruption campaign that began in 2012 and the departures of local government officials responsible for innovation programs strengthened the relationship between firms’ historical innovative efficiency and subsequent subsidy awards and depressed the influence of their corruption-related expenditures.Link

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How Close Are We To Another Financial Collapse?

How Close Are We To Another Financial Collapse? Nancy Koehn, September 19, 2018, Audio, “This month marks the 10 year anniversary of our financial system buckling under the weight of big lending. The crash set off the worst economic crisis since the Great Depression, with millions of Americans losing their homes, jobs and savings. While the debate is still going on as to whether policymakers did enough to prevent this meltdown from being even worse, are our policy makers doing enough right now to keep another crisis from happening?Link

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Responding to the Global Financial Crisis, What We Did and Why We Did It

Responding to the Global Financial Crisis, What We Did and Why We Did It – The Fiscal Response to the Great Recession: Steps Taken, Paths Rejected, and Lessons for Next Time. Jason Furman, September 11, 2018, Paper, “The fiscal response to the Great Recession started when President Bush signed the Economic Stimulus Act of 2008 on February 13, 2008 and finished when the payroll tax cut enacted under President Obama expired at the end of 2012. Congress enacted at least 18 different laws that explicitly included discretionary fiscal stimulus totaling over $1.5 trillion during those five years, with about half of that coming from the American Recovery and Reinvestment Act signed into law by Obama on February 17th 2009.2LInk

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Final Thoughts on Secular Stagnation

Final Thoughts on Secular Stagnation. Lawrence Summers, September 6, 2018, Opinion, “Too little was done in the aftermath of the financial crisis a decade ago to stimulate aggregate demand, which would be boosted by a more equal income distribution. And substantially stronger financial regulation than was in place before 2008 needs to be adopted to minimize the risks of future crises.Link

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Interview with Harvard Professor Robert Barro

Interview with Harvard Professor Robert Barro. Robert Barro, September 1, 2018, Opinion, “Robert Barro is a highly influential economist and has written extensively about macroeconomics. He is the Paul M. Warburg Professor of Economics at Harvard University, a senior fellow at Stanford University and co-editor of the Quarterly Journal of Economic. Barro shares a free market view of the current economic climate during an in-depth conversation with Filthy Lucre.Link

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