Thursday, September 2, 2010

Fed vs Romer. Maybe this is why she quit?

Dallas Fed President Fisher said that uncertainty over the potential cost of healthcare reform and future taxes is preventing businesses from investing and adding staff. “I believe that monetary accommodation alone cannot buy happiness”. Unfortunately, there wasn’t the same sense coming from the departing White House economist Christina Romer who urged more fiscal expansion; “The only sure-fire ways for policymakers to substantially increase aggregate demand in the short run is for government to spend more and tax less. In my view we should be moving forward on both fronts”

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