RESEARCH AND COMMENTARY
Alan J. Auerbach and William G. Gale, August 24, 2009, Financial Stability and Macroeconomic Policy Conference
Facing the most severe recession since the 1930s, the U.S. government has pursued an aggressive countercyclical fiscal policy, which is striking given the consensus a decade ago against the use of discretionary fiscal policy as a stabilization tool. In this new paper, William Gale and Alan J. Auerbach consider the evidence on the effects of discretionary fiscal policy, beginning with how the practice of this policy has changed over time.
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RESEARCH AND COMMENTARY
Eswar Prasad, May 28, 2009, The Brookings Institution
U.S. Treasury Secretary Timothy Geithner's first trip to China will feature a range of discussions about global economic issues and the U.S.-China economic relationship. Eswar Prasad outlines some of the critical agenda items and the broader challenges facing these two closely intertwined economies. Read More
RESEARCH AND COMMENTARY
Robert E. Litan, March 30, 2009, The Brookings Institution
Robert Litan discusses the Treasury’s six part plan for significantly reducing systemic risk in the financial system. He says the six elements in the Treasury plan, if enacted into law, should significantly reduce the likelihood of single or multiple failures of systemically important financial institutions in the future, as well as the losses to taxpayers for protecting their creditors. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, March 23, 2009, The Brookings Institution
Treasury Secretary Timothy Geithner’s plan announced on Monday to move some $1 trillion in toxic assets off of the balance sheets of the banks helps remove the uncertainty from the financial system although it will not fix the credit crisis on its own, according to Douglas Elliott. Strong concerns remain about whether the Public Private Investment Program (PPIP) will succeed—the program could either fizzle or prove to be too expensive for the taxpayer—but there are also some grounds for hope. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, March 03, 2009, The Brookings Institution
The administration’s new “stress tests” for the 19 largest banks will likely result in substantial new infusions of government money to bolster their capital. Douglas Elliott explains what “capital” is; how to measure whether a bank has enough of it; and what the stress test and capital proposals are. He applauds these actions as “right on virtually all counts.” Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, February 10, 2009, The Brookings Institution
Doug Elliott critiques the Obama administration’s new rescue plan for the banking sector announced on February 10, saying he agrees on the need for significant new capital injections, despite their political unpopularity, but argues that it is not at all clear that the proposed “bad bank” could be designed in a way that would make it better than simply guaranteeing toxic assets on the books of the banks. Elliott writes that the devil will indeed be in the details of the construction of the bad bank and the pricing mechanisms. Read More
RESEARCH AND COMMENTARY
Douglas J. Elliott, January 23, 2009, The Brookings Institution
The Treasury’s Troubled Asset Relief Program (TARP) has been widely described as a “$700 billion bailout” but Douglas Elliott points out that it will cost a lot less in reality. A recent CBO report suggests the actual cost may only be a quarter of the amount committed. We must use accurate cost estimates, using methods like CBO’s, to make the best decisions about the commitment to save our financial system, which programs are funded, and how we execute the rescues. Read More
PAST EVENT
Thursday, January 08, 2009
1:30 PM to 3:00 PM
Washington, DC
On January 8, the Brookings Institution hosted Assistant Secretary of the Treasury Neel Kashkari for an update on recent actions related to the Treasury Department’s $700 billion financial stability program. Full event audio is available for download. Read More
RESEARCH AND COMMENTARY
William A. Galston, December 18, 2008, The American Interest
William Galston examines what’s wrong with our current political institutions, given the current financial crisis and lack of coherent governance, and proposes how to create a better government. Read More
RESEARCH AND COMMENTARY
Martin Neil Baily, December 11, 2008, The Brookings Institution
The economy is the number one concern in the minds of main street Americans. The $700 billion bailout package was aimed at rebuilding financial institutions, but it is now up to the new president to restore confidence in consumers and workers. Read More
RESEARCH AND COMMENTARY
Sarah A. Binder and Mark Spindel, December 09, 2008, The Brookings Institution
Sarah Binder and Mark Spindel suggest that Congress should amend the $700 billion Troubled Assets Relief Program in several ways, including a rewrite of the conditions put on institutions that take TARP dollars. It is not too late to fix the mistakes made in the rush to enactment, they write. Read More
PAST EVENT
Friday, December 05, 2008
8:45 AM to 4:30 PM
Washington, DC
A new administration presents an ideal opportunity to reshape the nation’s tax code. Improving the equity, simplicity and efficiency of the tax system will help to better prepare taxpayers, businesses and the economy for the challenges that lay ahead. Brookings, the Urban-Brookings Tax Policy Center and Tax Analysts co-hosted a forum to explore timely policy recommendations for the incoming president and his transition team. Read More
RESEARCH AND COMMENTARY
William G. Gale and Benjamin Harris, December 05, 2008, The Brookings Institution
A new administration presents an ideal opportunity to reshape the nation’s tax code. Improving the equity, simplicity and efficiency of the tax system will help to better prepare taxpayers, businesses and the economy for the challenges that lay ahead. Read More
RESEARCH AND COMMENTARY
William J. Antholis and Charles K. Ebinger, November 11, 2008, The Brookings Institution
To address energy security—including climate change—President Obama must make this a top-three priority. His plan must address volatile energy prices, dangerous vulnerabilities resulting from our energy consumption and green technology to help revitalize our economy. Read More
VIDEO
Jeffrey R. Kling, November 07, 2008
President-elect Obama held his first press conference today, focusing on the economy. Kling commented on Obama’s address saying the nation needs two rounds of stimulus to kick-start the economy—the first to stem recent job losses and help homeowners, and then to focus on longer-term growth.