Thursday , March 4 2021
Home / Tag Archives: #fiscalpolicy

Tag Archives: #fiscalpolicy

DeLongTODAY: Fear of Rising Interest Rates No Reason to Shy Away from Fiscal Expansion

DeLongTODAY: Fear of Rising Interest Rates No Reason to Shy Away from Fiscal Expansion I am Brad DeLong, an economics professor at the University of California at Berkeley and a sometime Deputy Assistant Secretary of the U.S. Treasury. This is the weekly DeLongToday briefing. Here I hold forth here on the Leigh Bureau’s vimeo platform on my guesses as to what I think you most need to know about what our economy is doing to us right now. I promised Wes Neff when he agreed to provide the...

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DeLong Debt Memo: 2020-11-17

You asked me to think about long-run downside via fiscal drag and higher required tax rates and revenues in the future, after the economy has returned to full employment, from additional debt-financed COVID depression-fighting stimulus expenditures. You asked me to think in the context of Larry Summers’s and my “Fiscal Policy in a Depressed Economy” of a decade ago. My conclusion: RIGHT NOW THERE IS NO PROSPECT OF ANY FUTURE FISCAL DRAG FROM ADDITIONAL DEBT-FINANCED FISCAL STIMULUS......

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The Siren Song of Austerity: Project Syndicate

J. Bradford DeLong: The Siren Song of Austerity https://www.project-syndicate.org/commentary/return-of-austerity-in-us-by-j-bradford-delong-2020-11: ‘Among the many lessons of the 2008 financial crisis and its aftermath in the United States is that there is no good reason to start worrying about debt when unemployment remains high and interest rates low. The hasty embrace of austerity derailed the last recovery, and it must not be allowed to do so again: BERKELEY–Ten years and ten months...

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Noted: Sahm & al.: Household Response to the 2008 Tax Rebate

Claudia R. Sahm & al.: Household Response to the 2008 Tax Rebate http://www-personal.umich.edu/~shapiro/papers/w15421.pdf: 'Only about one-fifth of respondents in the Reuters/University of Michigan survey report that the 2008 tax rebates led them to mostly increase spending, while over half said it would lead them to mostly pay off debt. Of those in the mostly-spend category, the response was swift, with over 80 percent reporting increasing their spending within three months of...

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Hoisted from the Archives: From Eight Years Ago: The Way the World Looked to Me in the Summer of 2011

Tim Geithner, who thought that the administration and the Fed had done enough to stabilize the economy, that we were on track for a rapid recovery, and that the principal economic policy problems were going to be dealing with the long-run budget. Ben Bernanke, who thought that the administration and the Fed had done enough to stabilize the economy, that we were on track for a rapid recovery, and that the principal economic policy problems were going to be avoiding an unwanted uptick in...

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Monday Smackdown/Hoisted from the Archives: Paul Krugman: March of the Peacocks

I was hissed at a Pete Buttigieg fundraiser in August when I said that the Obama presidency had been disappointing. But I do believe this is right, and I think this taking your eye off the good-policy ball in order to strut about peacocking was a major thing that went wrong: Paul Krugman (2010): March of the Peacocks: "Last week, the Center for American Progress, a think tank with close ties to the Obama administration, published an acerbic essay about the difference between true...

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This From Dan Alpert Still Makes Immense Sense

Note to Self: 30-Year Treasury bonds continue astonishingly, bizarrely low: It is no longer the case that they are at their lowest levels ever, but this from Dan Alpert still makes immense sense: Dan Alpert: "We awake this morning to an all-time low yield on 30 year US Treasury bond: 2.107%. This is nearly 40 basis points below the average interest rate on all marketable treasury securities https://t.co/j3trQPFxfN. It is time to borrow and invest in infrastructure #LockItIn:

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Talking points for [Squawk Box: Business, Politics, Investors and Traders: 7:45 AM EDT 2019-08-24

Deficits matter. How they matter depends on: Is unemployment high or low? Are interest rates low or high? Is the debt sold to finance the deficit a solid asset or a shaky one? Are you worried because the debt service is large, the deficit is large, or the debt is large? At the moment the unemployment rate is low, so there is no reason to run a deficit: A competent government would be running a surplus, to increase the fiscal space available to run a deficit when one becomes...

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Monday Smackdown/Hoisted from the Archives: Scott Sumner Knew Better than to Do This!

Hoisted from 2011: Sumner really knew better than to do this, and really ought to have restrained himself: Scott Sumner: A Slightly Off-Center Perspective on Monetary Problems: "They are both basically saying: 'if we hold nominal spending constant, fiscal policy can’t fix it.'... [I]t’s really rather sad when people like Krugman and Brad DeLong keep insisting that these guys don’t understand basic macro principles.... I don’t know for sure that Fama was using the same implicit...

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