An October 4 commentary by University of Massachusetts economist Nancy Folbre argued that China’s rapid exit from recession is proof that the theories of economist John Maynard Keynes are still valid.
An October 1 report from Vice President Biden’s office reviewed the results of the Recovery Act, finding that the bulk of projects were on-schedule, often under budget, and largely free of corruption.
A paper from the Asian Development Bank posted on September 24 examined stimulus policies in 10 Asian countries. It finds that tax cuts are more effective than government spending.
On September 22, Moody’s Analytics economist Mark Zandi testified before the Senate Budget Committee on the federal response to the economic crisis. He says that the response was appropriate and that the economy would be in much worse shape if the government had done nothing.
In a September 17 analysis, economists Mathias Dolls, Clemens Fuest and Andreas Peichl examined the role of automatic stabilizers in the U.S. and Europe. They find that unemployment compensation is especially effective.
On September 5, economists Atif Mian and Amir Sufi posted a paper analyzing the impact of the cash-for-clunkers program. They find that while it stimulated sales during the period it was in effect, sales fell by almost exactly same amount in subsequent months, suggesting that it had only a timing effect on auto sales.
In a September 1 paper, political scientists Jeffrey Lazarus and Jason Reifler respond to an argument made by economist Veronique de Rugy that stimulus spending was targeted at Democratic districts. Lazarus and Reifler find that partisanship was not a factor; that the Democrats’ substantive policy priorities were the principal contributor to the results de Rugy identifies.
In a September paper, economists Robert J. Gordon and Robert Krenn responded to an argument made by Harvard economist Robert Barro that the experience of World War II proves that government spending is not stimulative. Gordon and Krenn look at the 1939-41 period when government defense spending rose sharply but before the World War II price controls, rationing and supply constraints distorted the data. They conclude that the fiscal multiplier is high. Princeton economist Paul Krugman commented on this paper on September 25.
I lasted posted items on this topic on September 16.
Bruce Bartlett is an American historian and columnist who focuses on the intersection between politics and economics. He blogs daily and writes a weekly column at The Fiscal Times. Read his most recent column here. Bartlett has written for Forbes Magazine and Creators Syndicate, and his work is informed by many years in government, including as a senior policy analyst in the Reagan White House. He is the author of seven books including the New York Times best-seller, Impostor: How George W. Bush Bankrupted America and Betrayed the Reagan Legacy (Doubleday, 2006).
