Archive for the ‘Economic Growth’ Category

Ed Kleinbard calls out “dynamic scoring”

January 3rd, 2015

There are many strong, substantive reasons to be worried about the use of “dynamic scoring” by the new Republican Congress. As Ed Kleinbard tells it in today’s NYT, the new majority is instructing the official scorekeepers of the revenue implications of tax changes to employ models that incorporate macroeconomic feedback. As I argued here, such… Read more

Asymmetric Credibility at the Fed and Price-Level Targeting

December 30th, 2014

While we in the US don’t have the disinflation (positive but declining rates of inflation) problem facing the Eurozone, our benchmark inflation rate has consistently undershot its mark. The Federal Reserve target for the core PCE deflator is 2%, year-over-year, and yet it hasn’t hit that growth rate even once since April of 2012. Since… Read more