Found 98 article(s) for author 'Martin Feldstein'

Normalizing Monetary Policy

Normalizing Monetary Policy. Martin Feldstein, Spring/Summer 2018, Opinion, “The current focus of Federal Reserve policy is on “normalization” of monetary policy—that is, on increasing short-term interest rates and shrinking the size of the Fed’s balance sheet. Short-term interest rates are exceptionally low, and the Fed’s balance sheet has exploded from $800 billion in 2008 to $4.4 trillion now.Link

Tags: , ,

The Next Step for Chinese Economic Policy

The Next Step for Chinese Economic Policy. Martin Feldstein, April 23, 2018, Opinion, “Now that it has risen to the top of the global economy, China must adopt the necessary reforms to become fully compliant with the international rules that it accepted upon joining the World Trade Organization in 2001. Its current policy will only lead to a serious trade conflict with the US.Link

Tags: , , ,

The Real Reason for Trump’s Steel and Aluminum Tariffs

The Real Reason for Trump’s Steel and Aluminum Tariffs. Martin Feldstein, March 15, 2018, Opinion, “The Trump administration’s proposed tariffs on steel and aluminum imports will target China, but not the way most observers believe. For the US, the most important bilateral trade issue has nothing to do with the Chinese authorities’ failure to reduce excess steel capacity, as promised, and stop subsidizing exports.Link

Tags: , , , , ,

Reagan’s Cure for America’s Debt Disease

Reagan’s Cure for America’s Debt Disease. Martin Feldstein, March 5, 2018, Opinion, “The federal government’s most urgent domestic challenge is the exploding debt and deficit. America’s debt nearly doubled during the Obama years, reaching 76% of gross domestic product in 2017. If nothing is done it will surpass 100% of GDP within a decade. The U.S. will then have one of the highest debt ratios in the industrial world—topped only by countries like Greece, Italy and Japan.Link

Tags: , , ,

Stock market could drop by a third

Stock market could drop by a third. Martin Feldstein, February 5, 2018, Video, “A prominent Harvard economist is warning that the U.S. stock market, which on Monday extended Friday’s big drop — is set for a drop of as much as a third of its current value, an outlook that would entail the Dow Jones Industrial Average tumbling to approximately 16,000 from its current lofty level.Link

Tags: , , , , ,

The Heightened Risks of a US Downturn

The Heightened Risks of a US Downturn. Martin Feldstein, January 26, 2018, Opinion, “The US economy has experienced nine recessions during the last 50 years. What makes the current situation unusual and more worrying than in the past is the low level of short-term interest rates and the high (and rising) level of federal debt, which will limit policymakers’ ability to provide the stimulus needed to counter a recession.Link

Tags: , , ,

US economy is in great shape, but very fragile

US economy is in great shape, but very fragile. Martin Feldstein, January 19, 2018, Video, “In a sea of bulls, one bear has emerged: Harvard University professor Martin Feldstein said on Friday that rising interest rates could send stocks into a downward spiral.  In March, the Federal Reserve is expected to announce its policy rate hike outlook for 2018. In September, Fed officials predicted it would raise rates three times in 2018 and twice more in 2019.” Link


Tags: , , , ,

America’s Policy Thinking in the Age of Trump

America’s Policy Thinking in the Age of Trump. Martin Feldstein, January 5, 2018, Paper, “What is striking in Trumpean economics – supply-side economics too – is the omission of economic growth. There is no awareness that nations at the frontier need indigenous innovation to have ample growth. The take-offs into sustained growth in 19th century Britain and America, later France and Germany, were fueled by dynamism from the grassroots up. Moreover, this stunted economics has no room for the rewards from participating in the economy besides the market wage – for the satisfaction of succeeding at what one is doing, the sense of flourishing as one’s career unfolds, and the thrill of venturing into the unknown.Link

Tags: , , ,