Category Archives: Fiscal Policy and Reforms

Strengthening of America

Many have been asking me to write more about the fiscal cliff.  As we watch the election returns today, I would keep two straightforward things in mind. First, the fiscal cliff was not created by aliens from outerspace.  It is another poor … Continue reading

Posted in Fiscal Policy and Reforms

Getting Tax Reform History Right

“For the past 75 years or so, tax reform has been defined by a tradeoff: broaden the tax base and lower rates,” as tax historian Joseph Thorndike explained in a recent article. That’s the framework behind the Romney tax reform … Continue reading

Posted in Fiscal Policy and Reforms

The GDP Impact a U.S. Fiscal Consolidation Strategy

Three and half years ago, in February 2009, John Cogan, Volker Wieland, Tobias Cwik and I estimated what the impact of the 2009 stimulus package (ARRA) would be. Our estimates, obtained by simulating modern macroeconomic models, were much smaller than those … Continue reading

Posted in Fiscal Policy and Reforms

A Little Dynamic Scoring of the House Budget

In a recently released report the Congressional Budget Office calculated how debt reduction with the House Budget Resolution (which just passed the House today), would affect GNP in the United States. The CBO took the spending and tax parameters from the … Continue reading

Posted in Fiscal Policy and Reforms

No, Austan, Washington Is Spending Too Much

In yesterday’s Wall Street Journal, Austan Goolsbee argues that Washington Isn’t Spending Too Much.  “It’s completely normal,” he says “that spending rises during big downturns….As the economy grows back to health, the government share of the economy will fall,” making it … Continue reading

Posted in Fiscal Policy and Reforms

Restoring Robust Growth in America

Why has the recovery been so slow? What can we do about it? Alan Greenspan, George Shultz, Ed Prescott, Steve Davis, Nick Bloom, John Cochrane, Bob Hall, Lee Ohanian, John Cogan and I recently met at the Hoover Institution at … Continue reading

Posted in Fiscal Policy and Reforms

Omitted Facts in a Speech on Omitted Variables

Christina Romer gave a speech at Hamilton College earlier this month which criticizes my findings that recent temporary tax rebates had little or no effect on aggregate consumption. Romer claims that in analyzing this “relationship between two variables” I did … Continue reading

Posted in Fiscal Policy and Reforms