On Reinhart and Rogoff

Harvard professors Carmen Reinhart and Kenneth Rogoff’s (R&R) 2010 paper, Growth in a Time of Debt, has been all over the news in the past few weeks due to a critique of their methodology by a team of University of Massachusetts-Amherst economists.

New Simpson-Bowles Plan Would Boost Economic Growth, Not Slow It

Some commentators have criticized deficit reduction plans like "A Bipartisan Path Forward" for, in their opinion, promoting austerity at a time when we should be promoting economic recovery.

An Interesting Analysis of Interest Rates

The Congressional Budget Office has been busy on its blog lately, posting both snapshots of federal programs and also publishing responses to questions they have received from Members of Congress at hearings. Their latest post from director Doug Elmendorf is the latter variety, showing the sensitivity of budget projections to changes in interest rates.

160 Economists and Policy Experts Call for Comprehensive Deficit Reduction

Despite a growing chorus of debt deniers, most economics continue to agree that putting in place a long-term plan to responsibly address our growing debt would help promote long-term economic growth and stability.

Event Recap: The Atlantic Economy Summit

The Atlantic held its 2013 Economy Summit yesterday, featuring more than twenty-four speakers on tax reform, the future of entitlement programs, and the role of debt and deficits in current policymaking. Experts from a wide range of different perspectives discussed how to deal with our debt and boost the economic recovery, arguably the two greatest challenges for policymakers today.

How Much Is the Economy Contributing to Deficits?

Last Friday, the CBO released a report showing how much the business cycle has affected budget deficits since 1960. The report shows the effect that automatic stabilizers -- features of the budget that tend to automatically push up/down spending and revenue based on cyclical economic effects -- have had and what the budget would look like assuming that the economy is operating exactly at its potential.

The OECD and Robert Solow on the Effects of Debt

As our national debt and deficit continue to rise, a question that continues to be on many people’s minds is how rising debt levels impact the economy, especially as the American economy remains far from a full recovery. A report from the Organization for Economic Cooperation and Development (OECD)’s Economics Department on Debt and Macroeconomic Stability explains how rising public and private debt levels are related to macroeconomic instability.

Bowles: National Debt Threatens U.S. Innovation

In an interview with Forbes contributor Henry Doss, former Fiscal Commission co-chair Erskine Bowles explains just how our unsustainable debt trajectory threatens the future of U.S. innovation and may be preventing some businesses from investing due to the uncertainty.

First, Bowles says that debt and deficits really do deserve the center stage:

The Economic Effects of Avoiding (Much of) the Fiscal Cliff

Update: CBO confirmed our numbers today, finding a remaining fiscal contraction of about 1 1/4 percent.

QE 3.1: The Fed Gets Specific

In September, the Federal Open Market Committee (FOMC) announced a third round of quantitative easing, consisting of purchases of mortgage-backed securities and long-term Treasuries. QE3 represented a break from previous rounds of easing because it did not involve an end date for the purchases. With that modification, there was some speculation that the FOMC would also set inflation and unemployment thresholds after which, if reached, the Fed would wind down its easing policy.

Syndicate content