Fiscal Policy
Some are already beginning to worry about the Inflation Reduction Act “crowding out” investment by the private sector. Yet the private sector is seeing things differently. In the most recent earnings call from major US steel producer Cleveland Cliffs, spending from the IRA was explicitly cited as a reason to
The following was originally presented as “Towards Macroprudential Fiscal Policy” at the Coordinating the Supply Side: Creating a Systemic Industrial Policy for the 21st Century conference put on by the Berggruen Institute in December 2022. In light of recent discussion about the scope, aims, and variety embedded in industrial policy,
As Congress considers a year-end spending bill, it faces a decision that will have a meaningful effect on inflation: whether or not to extend across-the-board Medicare reimbursement rates.
The Department of Treasury should be making use of the Exchange Stabilization Fund (ESF) to target accelerated supply-side responses and insure critical producers against downside risks.
The White House and Congress should consider an “all-of-the-above” approach oriented around three objectives: (1) investments where productive capacity; (2) targeted policies for reducing sectoral demand; and (3) policies that facilitate greater competition and technological diffusion.
Energy security has taken on new importance in wake of Russia’s invasion of Ukraine. We can use existing tools to confront these challenges without sacrificing our climate goals.
Now is the time for the Biden administration to think hard about how to encourage greater efficiency for the already elevated set of healthcare costs that the government and the private sector finance in this country.
Critics are claiming the American Rescue Plan was too ambitious as fiscal stimulus. The data suggests today's inflation is due to the speed with which the economy is adding jobs, not the number of jobs added. As such, critics are really wishing for a slower recovery with a slower pace of job growth.
Healthcare policy interventions could provide downward pressure on core PCE both in 2022 and in the years ahead. Given the salience of inflation, disinflationary healthcare policies should be a key priority for Congress and the Biden Administration alike.
