Congressional Budget Office Director Doug Elmendorf is doing a great job informing the economic policy debate in a rigorous and unbiased matter. He and the CBO staff face a test similar to that faced by CBO under Dr. Reischauer during debate on the Clinton Health Plan. They have so far withstood the pressure with aplomb, but the real pressure is just beginning.
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Tag Archives: council of economic advisers
Government Motors discussion on Fox News Sunday (continued)
7 June 2009 
12 Comments
In an earlier post I attempted to correct Dr. Austan Goolsbee’s incorrect and inflammatory statements about President Bush.I would like here to add my views to one additional question on the auto industry discussion on this morning’s edition of Fox News Sunday. Host Chris Wallace moderated a discussion this morning with: Dr. Austan Goolsbee, Member […]
Read moreDr. Goolsbee gets it wrong on the auto loans
7 June 2009 41 Comments
This morning on Fox News Sunday, host Chris Wallace moderated a discussion about the auto industry. One of his guests was Dr. Austan Goolsbee, who is a Member of President Obama’s Council of Economic Advisers and chief economist on the President’s Economic Recovery Advisory Board. I want to focus on some incorrect and inflammatory statements […]
Read moreIntro to TARP: Banks have two problems
28 April 2009 5 Comments
The big banks (and some large non-banks like AIG, Fannie Mae, and Freddie Mac) have two problems, not one: They don’t have enough capital. They have on their balance sheet downside risk that is creating uncertainty about how much the firm is worth and is scaring away investors. I will use a simple example constructed […]
Read more What caused this financial mess?
17 October 2008 Comments Off
President Bush spoke today about the financial crisis to the U.S. Chamber of Commerce. I’m going to use the President’s speech as an opportunity to explain to a non-financial audience what the Federal government did this week and why. I will oversimplify in many cases, and will gloss over many details. I don’t claim that […]
Read moreA "second stimulus?"
7 August 2008 Comments Off
We are frequently asked whether there should be a “second stimulus” bill. Unfortunately, what is being considered on Capitol Hill is a very different animal from what we did earlier this year. 10-second macroeconomic review GDP = Consumption + Investment + Government spending + Exports – Imports = C + I + G + X […]
Read moreThe Economic Report of the President
13 February 2008 Comments Off
On Monday Dr. Edward Lazear, Chairman of the President’s Council of Economic Advisers, released the Economic Report of the President for 2008. This traditionally is released a week after the President’s Budget. It describes the state of the U.S. economy, and also discusses in more detail a range of economic policy issues. As the ERP […]
Read more Extending unemployment insurance
30 January 2008 Comments Off
Some have been arguing that the growth package should extend the availability of unemployment insurance (UI) benefits. I’d like to cover three points in response: Unemployment benefits have never before been extended when the unemployment rate is as low as it is now, or before the economy has been in a recession. Extending unemployment benefits […]
Read moreA bipartisan economic booster shot
24 January 2008 Comments Off
Last Friday the President spoke about the need for additional Congressional action on the economy. Outsiders are referring to this as fiscal stimulus. We’ve been calling it a growth package. There’s a lot to say, so I’m going to break this up into three big parts. what the President proposed; why the President proposed it; […]
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