Economics & Global Affairs

300 Items

Federal Reserve Chairman Jerome Powell gestures while he testifies to the House Financial Services Committee on Tuesday, Feb. 27, 2018. (AP Photo/Jacquelyn Martin)

AP Photo/Jacquelyn Martin

Analysis & Opinions - Project Syndicate

The Fed Should Be Careful What It Wishes For

| Feb. 28, 2018

Empirical relationships in economics are sufficiently fragile that there is even a “law” about their failure. As British economist Charles Goodhart explained in the 1980s, “any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes.” Central banks in advanced economies have recently been providing a few more case studies confirming Goodhart’s Law, as they struggle to fulfill their promises to raise inflation to the stable plateau of their numerical targets.

House Ways and Means Committee Chairman Kevin Brady, R-Texas, whose panel is charged with writing tax law, pauses for reporters just after the House gave a significant boost to President Donald Trump's promise to cut taxes on Thursday, October 26, 2017. (AP Photo/J. Scott Applewhite)

AP Photo/J. Scott Applewhite

Analysis & Opinions - The Washington Post

Lawrence Summers: What I do Support in a New Tax Plan

| Oct. 25, 2017

I have been very sharply critical of what I regard as unprofessional exaggeration by advocates of the Trump tax proposal. Reasonably enough, people have asked what I am for.

I strongly support tax reform in general and especially corporate tax reform on the model of the highly successful bipartisan 1986 tax reform, which achieved very large rate reductions, spurred economic growth and improved the efficiency of the economy while being revenue- and distribution-neutral.

In this Dec. 6, 2012, file photo, Kevin Hassett, then a senior fellow and director of Economic Policy at the American Enterprise Institute, testifies on Capitol Hill before a Joint Economic Committee hearing. (AP Photo/ Evan Vucci, File)

AP Photo/ Evan Vucci, File

Analysis & Opinions - The Washington Post

One Last Time on Who Benefits From Corporate Tax Cuts

| Oct. 22, 2017

recently asserted that Kevin Hassett deserved a failing grade for his “analysis” projecting that the Trump administration proposal to reduce the corporate tax rate from 35 to 20 percent would raise the wages of an average American family between $4,000 to $9,000. I chose harsh language because Hassett had, for what seemed like political reasons, impugned the integrity of people like Len Burman and Gene Steuerle who have devoted their lives to honest rigorous evaluation of tax measures by calling their work “scientifically indefensible” and “fiction.” Since there have been a variety of comments on the economics of corporate tax reduction, some further discussion seems warranted.

An aerial photo shows buildings still surrounded by flood water in San Juan, Puerto Rico a week after the passing of Hurricane Maria.Wednesday, Sept. 27, 2017 (AP Photo/Ramon Espinosa)

AP Photo/Ramon Espinosa

Analysis & Opinions - The Washington Post

Trump Could Help Puerto Rico With the Stroke of a Pen. Why Hasn’t He?

| Sep. 28, 2017

My modestly informed guess is that Hurricane Maria and Puerto Rico will appear in history textbooks right next to Katrina and New Orleans. Puerto Rico’s unique territorial status and institutional constraints make the federal government’s response very difficult. And as I shall suggest in a subsequent post, the hurricane has greatly exacerbated Puerto Rico’s profound debt burden and development challenges. Yet one has to wonder why we are fanning the flames.

(AP Photo/Evan Vucci)

AP Photo/Evan Vucci

Analysis & Opinions - Financial Times

Why Don’t All CEOs Quit Trump’s Advisory Councils?

| Aug. 15, 2017

There is a long tradition in American history of business leaders as statesmen and moral leaders. They played an important role in the passage of the Marshall Plan. They have provided important support when the Supreme Court has upheld affirmative action. Business has long supported co-operation with other nations to promote prosperity. Most CEOs were strong and effective supporters of the Paris climate agreement. At the local level business leaders have fought to strengthen public schools and to resist discrimination against minorities.

Donald Trump


Analysis & Opinions - Foreign Policy

The Top Five Foreign-Policy Blunders Trump Hasn't Made Yet

| Aug. 04, 2017

"As bad as Trump's first six months have been, there are a number of major foreign-policy blunders he hasn’t made yet and for which we should therefore be grateful. Unfortunately, there are also signs he's contemplating several of them, and plunging ahead may look more tempting as his political fortunes erode. The more desperate he gets, the more he may be inclined to divert attention from his incompetence here at home by stirring up trouble somewhere else."

Stephanie Woodward, of Rochester, NY, who has spina bifida and uses a wheelchair, is removed from a sit-in at Senate Majority Leader Mitch McConnell's office as she and other disability rights advocates protest proposed funding caps to Medicaid, Thursday, June 22, 2017, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)

AP Photo/Jacquelyn Martin

Analysis & Opinions - Project Syndicate

How Would Health-Care Reform Affect Patient Health?

| July 26, 2017

"The prospect that repealing Obamacare would cause more than 20 million people to lose their formal insurance coverage, as the Congressional Budget Office has estimated, is understandably a serious barrier to legislative progress. It is important, therefore, to understand just what that would mean in practice, and how much it would actually affect the health of those who lose their formal insurance."