Category Archives: Fiscal Policy and Reforms

Surprising Findings at the Macro Handbook Conferences

In order to further progress on the new Handbook of Macroeconomics, which will be published next year, Harald Uhlig and I, the co-editors of the Handbook, hosted two conferences at Stanford and Chicago in April. Harald and I attended both … Continue reading

Posted in Budget & Debt, Financial Crisis, Fiscal Policy and Reforms, International Economics

First Principles Versus Secular Stagnation

With real GDP and employment data now in for all of 2013, the recovery still looks about as weak as ever. Sure, it’s good news that growth picked up again in the 3rd and 4th quarter, but  the three updated … Continue reading

Posted in Fiscal Policy and Reforms, Slow Recovery

Shoven Says: Defer Social Security Benefits

John Shoven’s practical advice on when people should start taking Social Security benefits is rightly getting  increased attention. The economics is quite straight forward, and baby boomers should pay careful attention. So should the Social Security Administration.  This table from John’s Policy … Continue reading

Posted in Fiscal Policy and Reforms

Paul Krugman is Wrong about Fiscal Policy Research

Over the weekend, Paul Krugman responded to my post in which I show that the slowdown in state and local government purchases of goods and services is a consequence, rather than a cause, of the weak recovery.  My basic point … Continue reading

Posted in Fiscal Policy and Reforms

Krugman’s Claims Are Wrong

Paul Krugman commented early this morning on the Wall Street Journal oped by John Cogan and me.  Our oped is based on our research paper with Volker Wieland and Maik Wolters which shows that there are beneficial effects on the economy—in … Continue reading

Posted in Fiscal Policy and Reforms

Keep the Sequester Totals But Add Flexibility Within

Scare stories about the automatic reduction in federal spending to start on March 1—commonly called the sequester—fall mainly into two categories. First are the concerns that reducing every discretionary budget account by the same percentage—the “meat-axe” approach—would not allow government … Continue reading

Posted in Fiscal Policy and Reforms

A Way to Avoid the Fiscal Cliff without Creating Another One

So far the fiscal cliff debate has mainly been about whether tax revenues should be on or off the table with little mention of spending. But the economics of the debate—as distinct from the raw politics—make no sense without considering … Continue reading

Posted in Fiscal Policy and Reforms