Washington Post (November 15)
Columnist Robert J. Samuelson summarizes current thought on Japan. “It’s hard to remember now that in the 1980s Japan had the world’s most–admired economy….Nowadays, all we hear are warnings not to repeat Japan’s mistakes.” Samuelson, however, draws a different lesson from Japan. Many preach the importance (or sometimes danger) of government stimulus. Others point to the dangers of deflation. The key lesson Samuelson draws from Japan is the importance of job creation. “There is no substitute for vigorous private-sector job creation and investment, and that’s been missing in Japan.”
Columnist Robert J. Samuelson summarizes current thought on Japan. “It’s hard to remember now that in the 1980s Japan had the world’s most–admired economy….Nowadays, all we hear are warnings not to repeat Japan’s mistakes.” Samuelson, however, draws a different lesson from Japan. Many preach the importance (or sometimes danger) of government stimulus. Others point to the dangers of deflation. The key lesson Samuelson draws from Japan is the importance of job creation. “There is no substitute for vigorous private-sector job creation and investment, and that’s been missing in Japan.”
Tags: Deficit spending, Deflation, Japan, Job creation, Lost decade, Stimulus
Boston Globe (November 15)
Recent criticism from abroad of the Federal Reserve’s monetary stimulus program is “way off base.” The “complainers’ chorus” is led by China, Germany and Brazil. The Globe singles out China for “calling the kettle black” by accusing the Fed of currency manipulation. The U.S. should be “unapologetic” about the Fed’s plan to stimulate the US economy. As President Obama pointed out at the G-20 summit a strong U.S. recovery will benefit countries around the globe.
Tags: Currency manipulation, Fed, Quantitative easing, Stimulus, U.S.
The New York Times (October 16)
Fearing deflation, the Federal Reserve appears poised to adopt quantitative easing measures. The Fed is widely expected to print new money and buy Treasury bonds, hence increasing the money supply. The Fed can’t, however, succeed alone. The New York Times calls on President Obama and Congress to adopt new stimulus measures to kick start the economy. “To put millions of Americans back to work, a lot more needs to be done. Mr. Bernanke can’t do it alone.”
Wall Street Journal (August 26)
Former Vice Chairman of the Federal Reserve Board Alan Blinder writes that “the Fed has already spent its most powerful ammunition; only the weak stuff is left.” Blinder examines the Fed’s remaining options for perking up the economy. He suggests tweaks, such as buying private assets rather than Treasuries, to strengthen the remaining options.
Former Vice Chairman of the Federal Reserve Board Alan Blinder writes that “the Fed has already spent its most powerful ammunition; only the weak stuff is left.” Blinder examines remaining options for perking up the economy. He suggests tweaks, such as buying private assets rather than Treasuries, to make the remaining options more effective.
New York Times (August 11)
Tuesday’s Federal Reserve statement “sparked a global sell-off in stocks on Wednesday.” Growth is now expected to be less than 2%. The Fed has indicated that it will do what it can, namely by keeping interest rates near zero and buying treasuries. This isn’t enough, but the government is unlikely to increase stimulus spending. The New York Times laments “the economy needs more and better help than it is getting.”
The Economist (June 10)
Rather than stimulus, G20 leaders are now speaking fiscal restraint. But belt tightening, especially in Europe, could cause the economy to flounder or result in a double dip. The Economist points out, however, that the reality is not as bad as the talk. Much of the belt tightening is minimal and scheduled to begin from 2011. “A calm look at the numbers, then, suggests that the odds of a collective G20 blunder towards recovery-wrecking austerity this year are low.”
Tags: Double-dip, Europe, Outlook, Stimulus, Tightening
Washington Post (May 25)
In London, Paris, Madrid and Athens, governments are moving from fiscal stimulus to spending cuts. But in Washington, “the long-awaited ‘pivot’ to fiscal restraint” remains unseen. Instead, Congress is sneaking new spending into as many places as possible. The Post finds much of this spending wasteful and self-serving.
In London, Paris, Madrid and Athens, governments are moving from fiscal stimulus to spending cuts. But in Washington, “the long-awaited ‘pivot’ to fiscal restraint” remains unseen. Instead, Congress is sneaking new spending into as many places as possible. The Post finds much of this spending wasteful and self-serving.
Tags: Congress, Governments, Stimulus, Washington
