Spotlight: Economic Recovery

Reuters/Jessica Rinaldi - A customer pays at a Target store in Dallas.
Karen Dynan, October 29, 2009
How long will the economic recovery take? Karen Dynan testified before the Joint Economic Committee that there is a great deal of uncertainty about the strength and speed of the nation’s recovery, with gradual expansion being the most likely economic scenario. She says that consumer spending is likely to grow modestly over the next few years because of weak income growth, higher saving and lower borrowing. Policymakers have options to bolster the recovery but they should be mindful of the long-run costs, particularly in terms of the budget deficit, she says.
Read More
U.S. Economy, U.S. Economic Growth
Spotlight: Banking

Reuters/Larry Downing - A Bank of America branch in Virginia
Douglas J. Elliott, October 28, 2009
As the financial system continues to stabilize, the House Financial Services Committee has drafted legislation intended to prevent future crises. The latest bill, which has been endorsed by the Obama administration, focuses on systemic risk and financial institutions that are deemed to be “too big to fail.” Douglas Elliott analyzes the 253-page bill, saying he thinks the enhanced resolution authority is essential, but he raises serious concerns about the structure of the council intended to tackle systemic risks.
Read More
Banking, Financial Institutions, U.S. Financial Market Regulation, U.S. Economy
Spotlight: Climate and Energy Economics

Reuters/Shannon Stapleton - The Valero St. Charles oil refinery is seen during a tour of the refinery in Norco.
Adele Morris, October 26, 2009
A cap-and-trade system of the sort envisioned by the current generation of Congressional proposals would create a new market in carbon allowances worth potentially hundreds of billions of dollars. In this paper, Adele Morris discusses the likely distributional implications of a U.S. cap-and-trade system and how policymakers could manage these implications by altering the way in which allowances or allowance revenues are distributed throughout the broader economy.
Read More
Energy Security, Environment, Environmental Regulation, Climate Change, Climate and Energy Economics