Found 583 article(s) for author 'Monetary Policy'

U.S. economy is just one bad recession away from zero rates or worse

U.S. economy is just one bad recession away from zero rates or worse. Lawrence Summers, October 14, 2019, Video, “The United States is just one bad recession away from being right back at zero interest rates or even lower, Larry Summers warned on CNBC on Monday. “It’s a very different world when everyone’s stuck at zero interest rates,” said Summers, a critic of President Donald Trump who served as former President Bill Clinton’s Treasury secretary and as an economic advisor for former President Barack Obama.Link

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Public economics and public policy: The ideas and influence of Martin Feldstein, 1939-2019

Public economics and public policy: The ideas and influence of Martin Feldstein, 1939-2019. Lawrence Summers, September 25, 2019, Paper, “Martin Feldstein, who passed away in June 2019, was one of the most important applied economists of the last half-century. This column, by two of his students and close colleagues, celebrates his intellectual legacy, outlining his seminal contributions on a wide range of topics in public economics and beyond, his pioneering use of large data sets, and his influential voice in US public policy over many decades. As president of the National Bureau of Economic Research for nearly 30 years, Feldstein advanced the conduct and dissemination of economic research, and helped to create the modern economics profession.Link

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Jason Furman, Former Chairman of the Council of Economic Advisers, on the Economy

Jason Furman, Former Chairman of the Council of Economic Advisers, on the Economy. Jason Furman, September 24, 2019, Video, “Jason Furman, Former Chairman of the Council of Economic Advisers and Professor of the Practice of Economic Policy at Harvard Kennedy School, discusses the economy. He speaks with David Westin on “Bloomberg: Balance of Power.”Link

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Why does Jerome Powell have a haunted look?

Why does Jerome Powell have a haunted look? Carmen Reinhart, September 23, 2019, Opinion, “Once a year, the leadership of both the European Central Bank (ECB) and the United States Federal Reserve (Fed) go to the mountains for policy enlightenment. The ECB conducts a forum every June in Sintra, a town in the foothills of the eponymous Portuguese mountain range.  And the Fed convenes in late August in Jackson Hole, Wyoming, for the Kansas City branch’s economic symposium. In retrospect, this year’s….Link

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‘Not much’: What macroeconomic data say about the impact of the Tax Cuts and Jobs Act

‘Not much’: What macroeconomic data say about the impact of the Tax Cuts and Jobs Act. Jason Furman, September 18, 2019, Opinion, “What does macroeconomic data since the passage of the Tax Cuts and Jobs Act of 2017 (TCJA) tell us about its impact on business investment and thus the future growth of the US economy? Not much. The first sense in which the data tell us “not much” is quite literal. The TCJA does not appear to have had nearly as much impact as many of its biggest cheerleaders expected and thought they saw in the data in the initial months after it passed. We now have six quarters of data since the law passed, and gross domestic product (GDP) has grown at an annualized rate of 2.5 percent in that period. That is a slight slowdown from the 2.6 percent annual rate in the six quarters leading up to the law’s passage, as shown in the chart below. This reflects the slowdown across consumption, business investment, and residential investment—which was only partly offset by the increase in government spending.Link

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Jerome Powell’s Dilemma

Jerome Powell’s Dilemma. Carmen Reinhart, September 18, 2019, Opinion, “There is a reason that the US Federal Reserve chair often has a haunted look. Probably to his deep and never-to-be-expressed frustration, the Fed is setting monetary policy in a way that increases the likelihood that President Donald Trump will be reelected next year.Link

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Launch a Pre-Emptive Strike Against Recession

Launch a Pre-Emptive Strike Against Recession. Jason Furman, September 5, 2019, Opinion, “President Trump was right to set aside premature plans for fiscal stimulus last month. Based on the current economic situation, stimulus isn’t yet warranted—but it may be soon. Given the uncertainty, Congress should pass a law immediately that would automatically trigger stimulus if the labor market deteriorates, with unemployment rising rapidly. The package should include not only tax cuts but also relief for states, as well as extra…Link

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