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woodwardhall.wordpress.com - 12/8/2008

Options for Stimulating the Economy

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We foresee a mixture of stimulus policies for the coming year. Monetary policy can only a small further contribution. Income-tax rebates seem to have little support and would probably have relatively small effects within the year, with undesirable continuing effects in later years. We are ...

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Woodward and Hall: Options for Stimulating the Economy
Economist's View — ... Options for Stimulating the Economy, by Susan Woodard and Bob Hall: In 2009, GDP in the U.S. is expected to be about $900 billion below its normal growth path. The ideal stimulus would have most of its effect in 2009 and would close a reasonable fraction of that gap. We see five general strategies for stimulus: ...

Hall & Woodward on Stimulus Options
Greg Mankiw's Blog — Economists Bob Hall and Susan Woodward opine over at their new blog.

Has the Fed Caused the Liquidity Trap Crunch?
EclectEcon — ... As The Wall Street Examiner says, The Fed expanded its balance sheet in a major way this week, but a look into the details reveals that the expansion was apparently funded once again by the growth of reserve deposits not related to the Fed’s lending programs. Cash is coming in to the Fed’s deposit accounts faster than it can push it back out into the market. [emphasis added] That's a succinct way of putting what Woodward and Hall say: ... the Fed pays 1 percent interest on reserves, which ...