Publications

2009
Feldstein M. Cap-and-Trade: All Cost, No Benefit. The Washington Post . 2009.
Feldstein M. The Fed must reassure markets on inflation . The Financial Times. 2009.
Feldstein M. Does the US Need Another Fiscal Stimulus. The Washington Post . 2009.
Feldstein M. Obama's Plan Isn't the Answer. The Washington Post . 2009.
Feldstein M. A Better Way to Health Reform. The Washington Post. 2009. washingtonpost_100809.pdf
Feldstein M. Why the renminbi has to rise to address imbalances. The Financial Times. 2009. ft102909-1.pdf
Feldstein M. Obamacare's Nasty Surprise. The Washington Post . 2009.
Feldstein M. Dollar weakness reflects a new role for reserves . The Financial Times. 2009.
Feldstein M. Geithner's Bank Plan is a Good Start . The Wall Street Journal. 2009.
Feldstein M. Tax Increases Could Kill the Recovery . The Wall Street Journal. 2009.
Feldstein M. How to Save an "Underwater" Mortgage . The Wall Street Journal. 2009.
Feldstein M. ObamaCare Is All About Rationing. The Wall Street Journal. 2009.
Feldstein M. ObamaCare's Crippling Deficits . The Wall Street Journal. 2009.
Feldstein M. Relections on Americans' Views of the Euro Ex Ante, in American Economic Association meeting. ; 2009. Publisher's VersionAbstract

This paper was prepared for a session of the 2009 American Economic Association meeting devoted to examining the views of American economists about the euro and the European Economic and Monetary Union on the tenth anniversary of the euro. I had written an article in 1992 in the Economist and subsequent articles in the Journal of Economic Perspecties and in Foreign Affairs. I begin by reviewing the arguments that I offered at that time about the claimed advantages of a single currency and about what I regarded as the disadvantages. I then discuss my claims that the primary motivation for the creation of the euro was political, not economic and that the creation of the euro could lead to increased conflict within Europe and with the United States. I conclude with a discussion of the implications for the EMU of the current recession and the likely future economic conditions in Europe.

Feldstein M. Economic Conditions and U.S. National Security in the 1930s and Today. Aspen Strategy Group; 2009. Publisher's VersionAbstract

This paper comments on the experience of the U.S. economy in the 1930s, its lessons for managing the current economic downturn, and the relation of U.S. economic conditions to our future national security. Some of the conclusions are: (1) Although the current recession will be long and very damaging, it is not likely to deteriorate into conditions similar to the Depression of the 1930s. Policy makers now understand better than they did in the 1930s what needs to be done and what needs to be avoided. (2) The focus on domestic economic policies in the 1930s and the desire to remain militarily neutral delayed the major military buildup that eventually achieved the economic recovery. (3) A well-functioning system of bank lending is necessary for economic expansion. We have yet to achieve that in the current situation. (4) Raising taxes, even future taxes, can depress economic activity. The administration's budget proposes to raise tax rates on higher income individuals, on dividends and capital gains, on corporate profits and on all consumers through the cap and trade system of implicit CO2 taxes. (5) Inappropriate trade policies and domestic policies that affect the exchange rate can hurt our allies, leading to conflicts that spill over from economics to impair national security cooperation. Reducing long-term U.S. fiscal deficits would reduce the risk of inflation and thereby reduce the fear among foreign investors that their dollar investments will lose their purchasing power. (6) The possibilities for domestic terrorism and of cyber attacks creates risks that did not exist in the 1930s or even in more recent decades. The scale and funding of the FBI and the Department of Homeland Security is not consistent with these new risks.

Feldstein M. Rethinking the Role of Fiscal Policy. American Economic Review [Internet]. 2009;May. Publisher's VersionAbstract

As recently as two years ago there was a widespread consensus among economists that fiscal policy is not useful as a countercyclical instrument. Now governments in Washington and around the world are developing massive fiscal stimulus packages, supported by a wide range of economists in universities, governments, and businesses.

Why has this change occurred? What are the principles for designing a potentially useful fiscal stimulus? And what will happen if the current fiscal stimulus fails?

2008
Feldstein M. The Declining Dollar. Project Syndicate. 2008. 03122008.pdf
Feldstein M. The Dollar and the Price of Oil. Project Syndicate. 2008. dollarandpriceofoil.syndicate.08.pdf
Feldstein M. What is the Dollar's Sustainable Value?. Project Syndicate. 2008.
Feldstein M. America's Economic Challenge. Project Syndicate. 2008.

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