CONGRESSIONAL TESTIMONY

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, vice president and co-director of Economic Studies, 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.
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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.
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Banking, Financial Institutions, U.S. Financial Market Regulation, U.S. Economy
SPOTLIGHT: Health Care

Reuters/Kevin Lamarque - Senate Majority Leader Harry Reid speaks about health insurance reform on Capitol Hill in Washington.
Darrell M. West, October 28, 2009
"Opt-out” has become the most powerful phrase in the health care debate, thanks to Senate Majority Leader Harry Reid’s decision to include it in Senate legislation. If particular jurisdictions do not like a public option, they simply can exit the government health insurance system for uninsured residents. This is a very American idea, writes Darrell West. However, from a governance standpoint, the public option creates a worrisome precedent for other policy areas.
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Health Care, U.S. Congress, U.S. Politics, Federalism
SPOTLIGHT: CLIMATE AND ENERGY

Reuters/Shannon Stapleton - The Valero St. Charles oil refinery is seen during a tour of the refinery in Norco.
Adele Morris, October 26, 2009
The Senate Environment and Public Works Committee held a series of hearings recently on climate change legislation, including provisions for cap-and-trade. Adele Morris discusses the likely distributional implications of a U.S. cap-and-trade system, explaining how policymakers can manage these implications by altering the way in which allowances or allowance revenues are distributed throughout the broader economy.
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Energy Security, Environment, Environmental Regulation, Climate Change, Climate and Energy Economics