Economic Recovery Measures

Have No Fear, CRFB Is Here!

Noted economist Brad DeLong is asking: where are the technocrats of the center? In a recent blog post, he laments the lack of a concrete plan among more centrist technocrats to get the economy going in the near-term while, at the same time leaving it better off in the long-run. He outlined a seven-point plan to accomplish this goal:

The Fed Takes Another Big Step to Boost the Economy

As widely expected (and priced into the markets), the Fed decided at its monetary policy committee meeting today that it would increase purchases of Treasury securities to boost the weak economy.

Agreeing with Rubin

Bob Rubin, former Clinton Treasury Secretary, had an opinion piece in the Financial Times on Monday that made a lot of points we certainly agree with. Some of his major points (emphasis ours):

How to Build a Fiscal Consolidation Package: Some Lessons from the IMF

“Virtually all advanced economies are likely to conduct fiscal consolidation at some point in the future to put their fiscal positions back on a sustainable footing.” - International Monetary Fund, World Economic Outlook, October 2010, p.21

The United States, like a number of other countries, needs to figure out how to best design a fiscal recovery package that will not derail a lackluster recovery, while at the same time, phases in debt reduction policies soon enough and aggressively enough to reassure credit markets.

Blinder on the Fiscal Policy Paradox

In an op-ed in today’s Wall Street Journal, Alan Blinder discusses his frustrations with what he dubs the “fiscal policy paradox”: that the economy-boosting “policies that might work won’t be tried,” due to partisan infighting, and the “policies that will be tried might not work.” He laments that fiscal policy has largely been on the sidelines while monetary policy undertaken by the Federal Reserve has done most of the heavy lif

FHFA Projects Fannie and Freddie Costs

Update: This blog has been updated to reflect additional information.

Bank Failures Reach 300 Mark

On Stimulus.org, we have been tracking the number of bank failures by FDIC-insured institutions since the beginning of 2008. As we have mentioned before, due to the financial crisis, the number of bank failures and their cost in each of the past three years has completely dwarfed the numbers from the prior eight years.

CNN Exclusive: Stimulus Even a Deficit Hawk Could Love

CRFB President Maya MacGuineas has a new commentary today on CNN.com. The piece offers some stimulus suggestions that balance aiding the economy in the short term with reducing the debt in the longer term. Read it here.

 

No New Lending From TARP

Right on the two-year anniversary of its enactment, the Troubled Asset Relief Program's (TARP) authority to disburse new money ended on Sunday. The program still has stake in a variety of institutions, so it will continue to be operational, but it will make no new loans or capital infusions.

‘Line’ Items: September to Forget Edition

Not Much Worth Remembering – As September closes this week, it is clear that lawmakers already have one foot out the door; anxious to return home to campaign in an election season unlike any other. The only accomplishment that Congress can point to this month is the passage of a small business package that had been stalled for months. The one item remaining for legislators is a must-pass continuing resolution to fund government when the new fiscal year begins.

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