Robert Barro and Charles Redlick wrote an op-ed in WSJ (link) on their original paper (link) where they discuss the macroeconomic effects of fiscal stimulus and construct long-term time-series on U.S macroeconomic data to examine whether real GDP increases follows the spending multipliers and whether reductions in marginal tax rates, rather than spending increases, tend [...]

June 5th is the birthday of John Maynard Keynes, a brilliant economist whose influential work during the 1930’s changed the course of history. He has had a great deal of influence on generations of economists, including advisers to our current president and congress. It’s too bad he was wrong in virtually all of [...]

Today, Barrack Obama announced the core of his economic team.  Timothy Geithner will lead Treasury, Larry Summers will head the National Economic Council, and Christina Romer will chair the Council of Economic Advisers.  In his news conference, President-elect Obama stated that they would “do whatever it takes” to pull the US economy out of its current [...]