Archive for the ‘Fiscal Policy’ Category

Ideas to boost wage growth from the Resolution Foundation

March 26th, 2015

I’ve often touted the UK think tank, the Resolution Foundation, for their timely, accessible, and smart policy work on all the key issues–macro, micro, budgets. But their work has been particularly important in raising the issue of wage stagnation in the UK–basically, the Brits caught our wage disease–median and low-wage stagnation, growing dispersion–later than us, but… Read more

Fiscal needs monetary and monetary needs fiscal…increasingly so

March 23rd, 2015

In weak economies, these two policy behemoths are complements, not substitutes. Over at PostEverything–it’s a summary from a chapter from my book, out in a few weeks! Special tabular bonus for OTE’ers: Source: Bernstein, The Reconnection Agenda: Reuniting Growth and Prosperity (forthcoming) Very important to be in box 1 in downturns. We started out there… Read more

The Fed lowered its long-term unemployment rate…and a salient point re the R’s budgets

March 19th, 2015

Details at PostEverything. Everyone’s wound up about precisely when liftoff will occur (when the Fed will first raise interest rates after about six years at about zero) but I think the big story is that the Fed lowered their “natural rate,” the unemployment rate consistent with stable inflation. It’s a confusing time for Fed macromanagement… Read more

One of the more outrageous things ever said re fiscal policy…and that’s a high bar.

March 17th, 2015

House Republicans released their budget today, and I found it to be…um…how can I put this nicely?…orthogonal to reality. As I wrote earlier: The policies put forth in this document suggest that America’s main problem is that the poor have too much and the wealthy, too little. The budget plan “corrects” this perceived imbalance by… Read more