<p><img class="float_right" src="http://static6.businessinsider.com/image/4c5c5ac27f8b9a200a5a0000-590-443/AP100211019896.jpg?maxX=480" border="0" alt="romer" width="480" />After the financial collapse, the US faced a problem in terms of how to stimulate the economy.</p>
<p>The Fed had reduced interest rates to basically zero, and so it was forced to use additional, quasi-experimental tools to keep pumping. And these measures have had limited, and somewhat unpredictable effects.</p>
<p>Meanwhile, on the fiscal stimulus front, virtually no extra spending was available following the Recovery Act due to politics.</p>
<p>Both of those issues are always going to be there in some way going forward. There's no getting around politics, even in a climate that might be more favorable to spending money.</p>
<p>In a <a href="http://t.co/uonrcnh97T">fascinating speech</a> last week at Johns Hopkins (via <a href="https://twitter.com/M_C_Klein/status/395314954900758528">Matthew Klein</a>), former Obama economic advisor Christy Romer proposes a totally different framework for stimulus.</p>
<p>Essentially we lean on fiscal stimulus more, but we set it up so that it's permanently flexible... and thus more like monetary policy.</p>
<p>So when the economy goes to crap, payroll <keyword id="6368033" type="UNKNOWN" weightage="60" keywordseo="Taxes">taxes</keyword> automatically drop and other extra benefits automatically rise. And when the economy recovers, payroll taxes begin to rise and other benefits are pulled back. Basically, counter-cyclical <keyword id="6415009" type="UNKNOWN" weightage="60" keywordseo="fiscal-policy">fiscal policy</keyword> is just built into the law.</p>
<p>She says:</p>
<p style="padding-left: 30px;">The most obvious way around the problem caused by the zero lower bound is to use the other main tool in the government's arsenal to deal with recessions-that is, fiscal policy. If we cannot spur spending and recovery by lowering interest rates, because they are already at zero, we can do it by temporarily lowering taxes and increasing government spending. However, as someone who played a role in crafting the Recovery Act, the fiscal stimulus passed in February 2009, I am acutely aware of how hard it is to get adequate fiscal stimulus through Congress and out into the economy in a timely fashion-even in the midst of a terrible economic crisis.</p>
<p style="padding-left: 30px;">But fiscal stimulus does work. Study after study has been done on the Recovery Act and the impacts of fiscal stimulus more generally. Though the studies find that some fiscal actions are more effective than others, almost all conclude that tax cuts and spending increases do help spur the economy in the near term. If the fact that normal interest rates are now lower means that we will be hitting the zero lower bound more frequently, we may want to consider ways to use fiscal stimulus faster and more effectively.</p>
<p style="padding-left: 30px;">You may be surprised to hear that I am a supporter of some form of balanced budget amendment. The fiscal stalemate and irresponsibility in Washington simply has to stop if we are going to remain an economic superpower. But within a framework of fiscal responsibility, such as a balanced budget amendment, it would be possible and, I think, sensible to build in more fiscal fire-fighting power.</p>
<p style="padding-left: 30px;"><span style="color: #ff0000;"><strong>We could set up a system that automatically cuts tax rates and increases unemployment benefits and food stamps when the economy weakens. This would get us fiscal stimulus quickly when the economy needs it</strong></span>. To balance out this automatic fiscal expansion, we could require automatic debt reduction in particularly good years. Such a new fiscal policy framework could get us the macroeconomic stability we want, with fiscal responsibility, despite the existence of the zero lower bound.</p>
<p>For what it's worth, Romer isn't the first to go in this direction. And obviously this would require some major changes in Washington, but as a way of thinking about how to solve the economic problems while being mindful of what's realistic in Washington, Christy Romer is worth listening to.</p>
<p>Read the full speech <a href="http://t.co/uonrcnh97T">here</a>.</p>

Former Obama Economic Advisor Has A Fascinating Idea For How We Should Deal With Future Recessions

<p><div class="image-container float_right" style="width:480px"><div class="image"><img src="http://static5.businessinsider.com/image/51e54cdfeab8eab01500000d-1200-924/washington-dc-capitol-dusk-shadow-1.jpg?maxX=480" border="0" alt="washington dc capitol dusk shadow" width="480" /><p class="source">REUTERS/Jonathan Ernst </p><p class="caption">Staff members walk past the US Capitol dome ahead of President Barack Obama's first address to a joint session of congress, in Washington, February 24, 2009.</p></div></div>With Ben Bernanke's term as <keyword id="6355253" type="ORGANIZATION" weightage="60" keywordseo="Federal-Reserve">Federal Reserve</keyword> Chairman ending this year, everyone is speculating about who may fill his seat should he decide not to return.</p>
<p>The current frontrunner is <a href="http://www.businessinsider.com/who-is-janet-yellen-2013-6">current Fed Vice Chair Janet Yellen</a>.</p>
<p>There are other contenders, but many doubt they'll be able to secure the votes needed to be confirmed.</p>
<p>However, UBS's <keyword id="1738334" type="PERSON" weightage="60" keywordseo="Art-Cashin">Art Cashin</keyword> points to the research of Strategas, who argues that the Fed appoint game may be changing.</p>
<p>From this morning's Cashin's Comments:</p>
<p style="padding-left: 30px;">In an overnight note, part of Jason Trennert's outstanding team at Strategas explored whether the current Senate showdown might change more than what is currently being debated.  In a paper titled "Change In Senate Rules For Nominations May Change The Dynamics For The Fed Appointment"; Dan Clifton, and Jeff Rubin postulate:</p>
<p style="padding-left: 60px;">While this fight over filibusters may sound like an arcane “inside the Beltway” discussion, the consequences could be significant for monetary policy …...  For example, our theme for who will be the next Fed Chair is to focus on which nominee can get 60 votes. We wrote last week that Larry Summers, Tim Geithner, and Christina Romer would be unlikely to garner 60 votes. But some, if not all, may be able to gain confirmation under the proposed new rules given that they are likely to garner 51 votes in the Senate with 54 Democrats voting.</p>
<p style="padding-left: 30px;">If the debate on the rule change were directly on a successor to Bernanke, they would be nuclear indeed.  Yet, the rules may be changed on some secondary posts, only to set precedent for some major decisions.  Small changes can reshape great democracies.  Let's hope crisis is averted.</p>

ART CASHIN: Washington Has Proposed New Rules That Could Have 'Nuclear' Implications For Monetary Policy

<p>The Kansas City Fed's annual Economic Policy Symposium kicked off on Thursday.</p>
<p>For many, the main event will be the appearance of Federal Reserve Chair Janet Yellen, who will offer opening remarks at 10:00 a.m. ET.</p>
<p>Other heavy hitters at the event include European Central Bank President Mario Draghi and Bank of Japan Governor Haruhiko Kuroda.</p>
<p>Here's the full schedule via the Kansas City Fed.</p>
<table style="width: 100%;" border="0">
<tbody>
<tr>
<td colspan="2">
<h2>Thursday, August 21, 2014</h2>
</td>
</tr>
<tr>
<td width="21%">
<h3>6 p.m.</h3>
</td>
<td width="79%">
<h3>Opening Reception and Dinner</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Host:</td>
<td><strong>Esther George</strong></td>
</tr>
<tr>
<td> </td>
<td>President and Chief Executive Officer,</td>
</tr>
<tr>
<td> </td>
<td>Federal Reserve Bank of Kansas City</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td colspan="2">
<h2>Friday, August 22, 2014</h2>
</td>
</tr>
<tr>
<td>Chair:</td>
<td><strong>Peter Blair Henry</strong></td>
</tr>
<tr>
<td> </td>
<td>Dean, Stern School of Business,</td>
</tr>
<tr>
<td> </td>
<td>New York University</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td align="left" valign="top">
<h3>8 a.m.</h3>
</td>
<td align="left" valign="top">
<h3>Opening Remarks</h3>
</td>
</tr>
<tr>
<td> </td>
<td><strong>Janet L.Yellen</strong></td>
</tr>
<tr>
<td> </td>
<td>Chair,</td>
</tr>
<tr>
<td> </td>
<td>Board of Governors of the Federal Reserve System</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>8:30 a.m.</h3>
</td>
<td>
<h3>Churn and the Functioning of Labor Markets</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Authors:</td>
<td><strong><a href="http://www.kc.frb.org/publicat/sympos/2014/083014-1.pdf">Steven J. Davis</a></strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>University of Chicago</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td><strong><a href="http://www.kc.frb.org/publicat/sympos/2014/083014-1.pdf">John Haltiwanger</a></strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>University of Maryland</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Discussant:</td>
<td><strong>Richard Rogerson</strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>Princeton University</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>9:05 a.m.</h3>
</td>
<td>
<h3>General Discussion</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>9:30 a.m.</h3>
</td>
<td>
<h3>Job Polarization</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Author:</td>
<td><strong><a href="http://www.kc.frb.org/publicat/sympos/2014/093014.pdf">David Autor</a></strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>Massachusetts Institute of Technology</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>10:15 a.m.</h3>
</td>
<td>
<h3>Discussant</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Discussant:</td>
<td><strong>Lisa M. Lynch</strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>Brandeis University</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>10:30 a.m.</h3>
</td>
<td>
<h3>General Discussion</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>10:55 a.m.</h3>
</td>
<td>
<h3>Panel on Demographics</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Panelists:</td>
<td><strong>Karen Eggleston</strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>Stanford University</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td><strong>David Lam</strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>University of Michigan</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td><strong>Ronald D. Lee</strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>University of California, Berkeley</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>11:55 a.m.</h3>
</td>
<td>
<h3>General Discussion</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>12:30 p.m.</h3>
</td>
<td>
<h3>Luncheon Address</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Speaker:</td>
<td><strong>Mario Draghi</strong></td>
</tr>
<tr>
<td> </td>
<td>President,</td>
</tr>
<tr>
<td> </td>
<td>European Central Bank</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>2 p.m.</h3>
</td>
<td>
<h3>Adjournment</h3>
</td>
</tr>
<tr>
<td height="24"> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td colspan="2">
<h2>Saturday, August 23, 2014</h2>
</td>
</tr>
<tr>
<td>Chair:</td>
<td><strong>Christina D. Romer</strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>University of California, Berkeley</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>8 a.m.</h3>
</td>
<td>
<h3>Scars From the Crisis</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Author:</td>
<td><strong><a href="http://www.kc.frb.org/publicat/sympos/2014/080014.pdf">Till Marco von Wachter</a></strong></td>
</tr>
<tr>
<td> </td>
<td>Associate Professor,</td>
</tr>
<tr>
<td> </td>
<td>University of California, Los Angeles</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Discussant:</td>
<td><strong>Antonella Trigari </strong></td>
</tr>
<tr>
<td> </td>
<td>Associate Professor,</td>
</tr>
<tr>
<td> </td>
<td>Bocconi University</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>8:35 a.m.</h3>
</td>
<td>
<h3>General Discussion</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>9 a.m.</h3>
</td>
<td>
<h3>Wage Dynamics</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Author:</td>
<td><strong><a href="http://www.kc.frb.org/publicat/sympos/2014/090014.pdf">Giuseppe Bertola</a></strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>EDHEC School of Business</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>9:45 a.m.</h3>
</td>
<td>
<h3>Discussant</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Discussant:</td>
<td><strong>Mark Bils</strong></td>
</tr>
<tr>
<td> </td>
<td>Professor,</td>
</tr>
<tr>
<td> </td>
<td>University of Rochester</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>10 a.m.</h3>
</td>
<td>
<h3>General Discussion</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>10:25 a.m.</h3>
</td>
<td>
<h3>Overview Panel: Labor Markets and Monetary Policy</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>Panelists:</td>
<td><strong>Ben Broadbent</strong></td>
</tr>
<tr>
<td> </td>
<td>Deputy Governor for Monetary Policy,</td>
</tr>
<tr>
<td> </td>
<td>Bank of England</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td><strong>Haruhiko Kuroda</strong></td>
</tr>
<tr>
<td> </td>
<td>Governor,</td>
</tr>
<tr>
<td> </td>
<td>Bank of Japan</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td> </td>
<td><strong>Alexandre Antonio Tombini</strong></td>
</tr>
<tr>
<td> </td>
<td>Governor,</td>
</tr>
<tr>
<td> </td>
<td>Central Bank of Brazil</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>11:25 a.m.</h3>
</td>
<td>
<h3>General Discussion</h3>
</td>
</tr>
<tr>
<td> </td>
<td> </td>
</tr>
<tr>
<td>
<h3>2 p.m.</h3>
</td>
<td>
<h3>Adjournment</h3>
</td>
</tr>
</tbody>
</table>

JACKSON HOLE: Here's The Program Schedule For The Kansas City Fed's Economic Policy Symposium

<p><div class="image-container float_right" style="width:480px"><div class="image"><img src="http://static1.businessinsider.com/image/51d03251ecad04a025000010-1200-924/janet-yellen-6.jpg?maxX=480" border="0" alt="Janet Yellen" width="480" /><p class="source">REUTERS/Mario Anzuoni</p><p class="caption">Janet L. Yellen (L) watches before being introduced on stage at the Town Hall Los Angeles forum in Los Angeles March 23, 2010.</p></div></div>The "race" between <keyword id="192145" type="PERSON" weightage="60" keywordseo="Larry-Summers">Larry Summers</keyword> and <keyword id="116249" type="PERSON" weightage="60" keywordseo="Janet-Yellen">Janet Yellen</keyword> to succeed Ben Bernanke is becoming more and more like a political battle every day.</p>
<p>The latest example: A STRONG endorsement of Janet Yellen in the New York Times, that reads a lot like a paper endorsing a politician.</p>
<p>Not only is it a strong endorsement of Yellen, it's pretty brutal towards Larry Summers, whom the paper ties to bad economic decisions, bad regulatory decisions, and even sexism.</p>
<p>First on the differences in their economic pasts:</p>
<p style="padding-left: 30px;">A Yale educated economist and professor emeritus at the University of California, Berkeley, she was first nominated and confirmed to the Fed board in the 1990s; from 2004 to 2010, she served as the president of the <keyword id="6355253" type="ORGANIZATION" weightage="60" keywordseo="Federal-Reserve">Federal Reserve</keyword> Bank of San Francisco. <strong>She has been vice chairwoman since 2010, a trying time in which the Fed’s largely successful efforts to steer the economy have been made all the more difficult by poor fiscal policy decisions, including the White House’s premature pivot from stimulus to deficit reduction, which happened while Mr. Summers was a top adviser to Mr. Obama</strong>.</p>
<p>And on the matter of gender:</p>
<p style="padding-left: 30px;">...she is reminiscent of other accomplished women with whom Mr. Summers, or his supporters, or both have tangled in the past.</p>
<p style="padding-left: 30px;">In 1998, Mr. Rubin and Mr. Summers opposed Brooksley Born, then the chairwoman of the Commodity Futures Trading Commission, for correctly calling for the regulation of derivatives; in 2009, Mr. Summers squelched the sound recommendation of Christina Romer, then an economic adviser to Mr. Obama, for a larger stimulus. In the first Obama term, Mr. Geithner clashed unhelpfully with Sheila Bair, then the chairwoman of the Federal Deposit Insurance Corporation, and with Elizabeth Warren, then the chairwoman of the Congressional panel overseeing the bailouts.</p>
<p>The final line:</p>
<p style="padding-left: 30px;">In the end, the choice rests with Mr. Obama. The facts are entirely on Ms. Yellen’s side. Is the president?</p>

New York Times Slams Larry Summers, And Comes Out Hard In Favor Of Janet Yellen For Fed Chair

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56b2c4975124c9bd3f8b4567-800-512/democratic-hopeful-sanders-attacks-clintons-progressive-credentials.jpg" alt="U.S. Democratic presidential candidate Bernie Sanders answers a question from the audience while taking part in a CNN Democratic Town Hall moderated by American journalist and CNN anchor Anderson Cooper (unseen) in Derry, New Hampshire February 3, 2016.  REUTERS/Rick Wilking " data-mce-source="Thomson Reuters" data-mce-caption="U.S. Democratic presidential candidate Bernie Sanders answers a question from the audience while taking part in a CNN Democratic Town Hall moderated by American journalist and CNN anchor Anderson Cooper (unseen) in Derry, New Hampshire" /><p class="source"><span>Thomson Reuters</span></p><p class="caption">U.S. Democratic presidential candidate Bernie Sanders answers a question from the audience while taking part in a CNN Democratic Town Hall moderated by American journalist and CNN anchor Anderson Cooper (unseen) in Derry, New Hampshire</p></div><p></p></div></div>Four prominent Democratic economists wrote a letter condemning an analysis that estimated the costs of Democratic presidential candidate Bernie Sanders' economic plans, arguing the platform would "undermine the credibility of the progressive economic agenda."</p><p>The economists - Alan Krueger, Austan Goolsbee, Christina Romer, and Laura D'Andrea Tyson - each served at one point as a chair of the Council of Economic Advisers under Presidents Bill Clinton and Barack Obama.</p><p>In their letter, they argued Sanders' assurances that massive spending increases would provide economic growth exceeded the "grandiose" predictions by Republican candidates about how their tax cuts would boost the economy.</p><p>"No credible economic research" supports those estimates, the economists <a href="https://lettertosanders.wordpress.com/2016/02/17/open-letter-to-senator-sanders-and-professor-gerald-friedman-from-past-cea-chairs/">wrote in the open letter</a>, which was addressed to Sanders and Gerald Friedman, an economist at the University of Massachusetts-Amherst.</p><p>"Making such promises runs against our party's best traditions of evidence-based policy making and undermines our reputation as the party of responsible arithmetic," they continued, adding that Friedman's claims were "extreme."</p><p>Their criticism comes as the campaign of former Secretary of State Hillary Clinton, Sanders' primary rival, has highlighted what it says is the unrealistic nature of many of Sanders' proposals. Other liberal-leaning economists, <a href="http://krugman.blogs.nytimes.com/2016/02/16/my-unicorn-problem/" target="_blank">including Paul Krugman,</a> have criticized Sanders' economic platform this week.</p><p>Friedman's <a href="http://www.dollarsandsense.org/What-would-Sanders-do-013016.pdf">projections</a>, which he laid out late last month, suggested that median incomes would soar by more than 20% and GDP growth could be as high as 5.3% annually under Sanders' economic plan. Such growth would provide more than enough in tax revenue to fund big spending Sanders initiatives like a "Medicare for all" healthcare plan and free college tuition, to name a pair. </p><p>"In sum, these programs will increase economic growth and employment, reduce poverty and inequality, and balance the federal budget," Friedman wrote. "The Sanders economic policy will achieve broad-based and sustained prosperity."</p><p>For his part, Friedman told Business Insider he was stunned by the scathing assessment of his projections. He added the only connection he has with Sanders, the independent senator from Vermont, was in meeting him at a congressional hearing three years ago.</p><p>"I testified about single-payer [healthcare] and I was very proud, and he shook my hand after my testimony. He leaned over and whispered to me that I did a good job, and that made my day," Friedman said. "No senator had ever said that to me."</p><p>Friedman said the campaign had "nothing to do with the report." In fact, he said, he is actually a donor to Clinton.</p><p>"I have no connection to the campaign and I don't necessarily support Sen. Sanders," he said. "I donate to Hillary Clinton $10 a month, so that was weird."</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56c64d736e97c623008b830b-3758-2818/rtx2355h.jpg" alt="bernie sanders" data-mce-source="REUTERS/Jim Young" /><p class="source"><span>REUTERS/Jim Young</span></p><p class="caption">Bernie Sanders.</p></div><p></p></div></div>He said he was "speechless" when he read that the chairs said his projections were harmful to the progressive economic platform.</p><p>"I wonder if they actually read it," he said. "What I did was completely conventional Congressional Budget Office modeling. ... I would like them to tell me what they think I did that's weird."</p><p>Goolsbee, a University of Chicago economist who served as chair of the CEA from 2010-2011 under Obama, told Business Insider in an email that the letter wasn't meant to be a critique of Sanders or Friedman. Rather, he said it was a "plea to stick with reality-based analysis and avoid creating a Vermont version of voodoo economics." </p><p>He said he praised the Sanders plan in November for being honest about wanting more spending and needing more tax dollars to do so, but added that this analysis showing mass growth, <a href="https://www.washingtonpost.com/news/wonk/wp/2016/02/18/top-democratic-economists-just-launched-a-blistering-attack-on-bernie-sanders/">which has been embraced</a> by the campaign, undermined that honesty. </p><p><span style="line-height: 1.5em;">"I think he could realistically propose a lot of his existing ideas - college, family leave, gender equality, and even the health plan," Goolsbee wrote. "But he should really work out the details and use legit numbers when he does."</span> </p><p>The Sanders campaign didn't respond to a request for comment on this story.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/democratic-debate-heated-moment-bernie-sanders-hillary-clinton-wall-street-speaking-fee-2016-2">'If you've got something to say, say it' - here's the most heated moment from last night's Democratic debate</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NlcjBwMDE6IYdGjl9eJFuHxp2MNDz1Dq" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'NlcjBwMDE6IYdGjl9eJFuHxp2MNDz1Dq',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

A bunch of top Democratic economists are lashing out at Bernie Sanders' economic plans

<p><div class="image-container float_right" style="width:480px"><div class="image"><img src="http://static5.businessinsider.com/image/51eef13c69bedd2513000012-1200-924/lawrence-larry-summers-yawn.jpg?maxX=480" border="0" alt="lawrence larry summers yawn" width="480" /><p class="source">REUTERS/Arnd Wiegmann</p><p class="caption">Lawrence Summers, Director of the National Economic Council yawns during a session at the World Economic Forum (WEF) in Davos, January 30, 2010.</p></div></div>The debate over who will become the next Chairman of the <keyword id="6355253" type="ORGANIZATION" weightage="60" keywordseo="Federal-Reserve">Federal Reserve</keyword> is heating up.</p>
<p>It was long believed that current <a href="http://www.businessinsider.com/who-is-janet-yellen-2013-6">Vice Chair Janet Yellen was the clear and obvious favorite</a>.</p>
<p>But former Treasury secretary <keyword id="192145" type="PERSON" weightage="60" keywordseo="Larry-Summers">Larry Summers</keyword> seemingly <a href="http://www.businessinsider.com/report-larry-summers-is-the-frontrunner-2013-7">emerged out of nowhere as an unlikely frontrunner</a>.</p>
<p>However, UBS's <keyword id="1738334" type="PERSON" weightage="60" keywordseo="Art-Cashin">Art Cashin</keyword> floats the idea that a Summers' candidacy is just a "ruse."</p>
<p>It would have all started when volatility in the markets spiked after Bernanke suggested <a href="http://www.businessinsider.com/federal-reserve-taper-talk-2013-6">the Fed could soon taper</a> its monthly purchases of $85 billion worth of bonds.</p>
<p>From Cashin (emphasis added):</p>
<p style="padding-left: 30px;"><span style="text-decoration: underline;">The FoF (Machiavelli Chapter), Casts A Jaundiced Eye On The Larry Summers "Candidacy"</span> – A group of ultra-cynics at the Friends of Fermentation (FoF) Seminars has a bit of a different spin on the growing buzz about a possible selection of Larry Summers to replace Ben Bernanke.  The FoF contingent thinks the whole thing may be a ruse to "condition" the markets to the ultimate election of Yellen.</p>
<p style="padding-left: 30px;"><strong>Part of the hypothesis is that some of the economic advisors to the President were shocked by the market's sharp and sudden response to Bernanke's hint of a shift to tapering.  The fact that the hint required nearly the entire FOMC to be trotted out to soothe markets showed the Administration how sensitive to change markets might be.</strong></p>
<p style="padding-left: 30px;"><strong>A looming key change will be the announcement of the Bernanke successor.  If there is a negative response, there is no easy "walk back".</strong>  The President would be hardly willing to take the political (and legacy) hit of a withdrawal and new nominee.  The FoF cynics think that led Washington strategists to suddenly refloat a Summers candidacy three weeks ago, after it had been presumed dead and buried.  <strong>Summers, as a non-Fed type, with some historical controversy attached would work as the perfect foil to openly vet and debate Yellen's candidacy.  A full debate could gauge reactions in the markets and also condition them to Yellen assuming the throne</strong>.  Peanuts, pondering and plotting are all on the FoF menu.</p>
<p>For now, all of this debate seems to have <a href="http://www.businessinsider.com/ubs-odds-of-other-fed-chair-candidates-2013-7">advanced the odds of other Fed Chair candidates</a> like former Vice Chair Roger Ferguson and former Council of Economic Advisors Chair Christina Romer.</p>

ART CASHIN: It's Possible That The Larry Summers Fed Chair Candidacy Is Just A Ruse Orchestrated By The White House

<p><div class="image-container float_right"><div class="image"><img src="http://static2.businessinsider.com/image/51e7fac76bb3f7685a000002-1200-924/ben-bernanke-74.jpg?maxX=480" border="0" alt="Ben Bernanke" width="480" /><p class="source on-image">REUTERS/James Lawler Duggan</p><p class="caption">U.S. <keyword id="6355253" type="ORGANIZATION" weightage="60" keywordseo="Federal-Reserve">Federal Reserve</keyword> Chairman <keyword id="45366" type="PERSON" weightage="60" keywordseo="Ben-Bernanke">Ben Bernanke</keyword> delivers his semi-annual monetary policy report to Congress before the House Financial Services Committee in Washington, July 17, 2013.</p></div></div>UBS economist Drew Matus says that now that former U.S. Treasury Secretary Larry Summers has withdrawn his name for consideration as the next chairman of the Federal Reserve, all of the other potential candidates' odds have gone up - including current Fed chairman Ben Bernanke's (emphasis added):</p>
<p style="padding-left: 30px;"><span style="line-height: 1.5em;">Although Summers's withdrawal from the race for the Federal Reserve Chair increases the odds that Vice Chair Yellen will get the nod from the President (which has been the UBS economics call from the start), it is by no means a guarantee. His withdraw also increases the odds of a compromise candidate such as former Fed Vice Chair Ferguson (a money manager, PhD Economist and a JD who may be better able to manage the new regulatory powers the Fed possesses) or former Fed Vice Chair Kohn (a career Fed official who has "seen it all").</span></p>
<p style="padding-left: 30px;"><span style="line-height: 1.5em;">Alternatively the President could look to Christina Romer (former Chair of the Council of Economic Advisors and, perhaps more importantly, a political ally) or even look to former Treasury Secretary Geithner, who is reportedly advising on the search process (but who may want to continue on the lecture circuit). </span><strong style="line-height: 1.5em;">It also increases the odds that the President may ask Chairman Bernanke to stay on (although it seems unlikely that Chairman Bernanke would appreciate being asked to forestall his departure).</strong></p>
<p>Another Bernanke term is not a scenario you hear many people talking about.</p>
<p><span style="line-height: 1.5em;">Markets, Matus writes in a note to clients, still prefer Yellen the most, though.</span></p>
<p><span style="line-height: 1.5em;">"However, this has always been the case and the President was willing to ignore the "obvious" choice to place an ally at the helm of the Federal Reserve," says Matus. "It is unclear to us whether the President will choose to heed the market (and Democratic Senators') call for Yellen or whether he will now move beyond the two candidates to avoid choosing the candidate he initially did not prefer."</span></p>
<p><span style="line-height: 1.5em;">Regardless of who President Obama chooses to nominate, implications for the market may not be all that different from candidate to candidate.</span></p>
<p><span style="line-height: 1.5em;">"Perceptions of hawkish or dovish tendencies of the new Fed Chair may overstate the actual importance of a Fed Chair's desires in the new framework Bernanke has crafted," says Matus. "Assuming we are correct and the initial tapering of quantitative easing is announced on Wednesday, the new Fed Chair will take office only after four months of tapering have occurred. Once seated, they will still face constraints regarding future policy decisions from the FOMC's threshold guidance around unemployment and the first interest rate hike." </span></p>

UBS: The Odds Of Bernanke Staying On As Fed Chair Just Went Up

<p><div class="image-container float_right" style="width:332px"><div class="image"><img src="http://static2.businessinsider.com/image/50c34b4becad041e33000031-500-375/screen shot 2012-12-08 at 9.13.04 am.png?maxX=332&amp;maxY=249" border="0" alt="Jan Hatzius" width="332" height="249" /></div><p class="source"><a href="http://www.goldmansachs.com/our-thinking/topics/global-economic-outlook/jan-hatzius/index.html">Goldman Sachs</a></p></div>Goldman's <keyword id="372504" type="PERSON" weightage="60" keywordseo="Jan-Hatzius">Jan Hatzius</keyword> is out with his list of the 10 most important questions for 2013.</p>
<p>Here are the questions, and his answers (his actual note spells out the answers much more elaborately, but we're just bringing you the simplified version)</p>
<ul>
<li>Will interest rates rise? Not much.</li>
<li>Will the federal reserve stop buying assets? No.</li>
<li>Will there be a bond market scare over the budget deficit? No.</li>
<li>Will core inflation accelerate significantly? No.</li>
<li>A profit margins going to shrink in 2013? No.</li>
<li>Will unemployment rate fall quickly? No.</li>
<li>Will housing continue to recovery? Yes.</li>
<li>Will capex growth accelerate? Yes.</li>
<li>Will growth pick up in second half? Yes.</li>
</ul>
<p>And the most important question of 2013 is....</p>
<p style="padding-left: 30px;">1.Will the 2013 tax hike tip the <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword> back into recession? </p>
<p style="padding-left: 30px;">No. To be sure, it will likely deal a heavy blow to household finances, and we therefore expect consumer spending to be weak this year. Once we add the expiration of the payroll tax cut (a hit of $126bn), the expiration of the Bush-tax cuts for families earning more than $450,000 ($50bn), and the increase in taxes to finance the Affordable Care Act ($24bn), it amounts to $200bn or 1.6% of disposable personal income. As shown in Exhibit 1, this could push real income growth in the first quarter into negative year-on-year territory—something that has never happened without a recession!</p>
<p style="padding-left: 30px;"><table class="image-container" width="200"><tr><td><div class="image"><img src="http://static3.businessinsider.com/image/50f1c57469bedddf7d00001e-499-301/screen shot 2013-01-12 at 3.19.56 pm.png" border="0" alt="image" /></div><p class="source">Goldman Sachs</p></td></tr></table></p>
<p style="padding-left: 30px;">But we do not expect the impact to be as bad as suggested by Exhibit 1. We recently estimated the effects of higher taxes on consumption using three different econometric models: (1) a vector autoregression (VAR) model that traces out the dynamic impact of shocks to disposable income on consumption; (2) the Fed’s large-scale econometric model, FRB/US; and (3) the database of “exogenous” tax increases compiled by economists Christina and David Romer of the University of California, Berkeley. As illustrated in Exhibit 2, the estimates for the impact on real consumer spending growth in the first half of 2013 from the three models center around a 1-percentage-point hit to real consumer spending growth—a substantial impact, but not enough to cause an outright contraction in spending.</p>
<p style="padding-left: 30px;"><table class="image-container" width="200"><tr><td><div class="image"><img src="http://static4.businessinsider.com/image/50f1c59b69bedd2d7e000018-476-303/screen shot 2013-01-12 at 3.20.37 pm.png" border="0" alt="image" /></div><p class="source">Goldman Sachs</p></td></tr></table></p>

Goldman's Jan Hatzius Answers The 10 Most Important Questions For 2013

<p>More than 200 econ professors and counting have signed an open letter calling on President Obama to name Fed Board Vice Chair <keyword id="116249" type="PERSON" weightage="60" keywordseo="Janet-Yellen">Janet Yellen</keyword> to succeed Ben Bernanke as Fed Chair.</p>
<p>And there are some big names among them:</p>
<p>Princeton's Alan Blinder, Berkeley's Christina Romer, Columbia's Joe Stiglitz, Yale's Robert Shiller, Michael Woodford, and San Diego's James Hamilton (<a href="http://www.econbrowser.com/archives/2013/09/economists_supp.html">who brought the letter to our attention</a>).</p>
<p>The pitch highlights Yellen's prescient views in the run-up to the Great Recession, her record on labor issues and openness to a range of views. </p>
<p><em>Here's the full text:</em></p>
<h1>PUBLIC POLICY <keyword id="69568" type="PERSON" weightage="60" keywordseo="Economists">ECONOMISTS</keyword>' OPEN LETTER IN SUPPORT OF JANET YELLEN AS THE NEXT <keyword id="6355253" type="ORGANIZATION" weightage="60" keywordseo="Federal-Reserve">FEDERAL RESERVE</keyword> CHAIR</h1>
<div id="content-core">
<div id="parent-fieldname-text">
<p>Dear President Obama:</p>
<p>We the undersigned economists, with both academic and practitioner interests in public policy, respectfully urge you to appoint Janet Yellen as the next Chair of the Board of Governors of the Federal Reserve System.</p>
<p>While there are many reasons to select Janet Yellen for this position, we would like to emphasize three of them.</p>
<p>Dr. Yellen is superbly qualified.  She has shown consistently good judgment in all her roles leading our nation's financial institutions and economic policy, first as a member of the Board of Governors of the Federal Reserve System (FRB), then as Chair of the Council of Economic Advisers under President Clinton, President of the Federal Reserve Bank of San Francisco, and now as Vice Chair of the FRB.  While leading the San Francisco Federal Reserve Bank in 2005, she warned of an impending real estate meltdown as asset prices rose unrealistically. Dr. Yellen was one of the first members of the Federal Open Market Committee to realize that the financial sector's difficulties in 2007 could cause a major recession, and she worked to focus her colleagues on the problems of the housing sector.  Her knowledge of how the Fed sets policy, her understanding of the relationship between monetary policy and economic growth, and her ability to see and propose solutions to emerging economic problems is second to none.</p>
<p>Dr. Yellen is willing to hear multiple points of view and to bring many voices into the policy making arena.  She is not beholden to a single interest group, nor to a single industry. There is less and less room in modern public policymaking, especially at the FRB, for a single leader to dominate discussion.  Modern policymaking, in a world filled with uncertainties and complexities, must proceed through cooperation and consensus, led by effective leaders.  Dr. Yellen has demonstrated the ability to hear all points of view and then act effectively at the FRB.</p>
<p>In her public speeches and scholarly writings, Dr. Yellen demonstrates a clear and nuanced understanding of labor markets, including why they do not always generate enough jobs. As our weak recovery enters into its fifth year of slow economic growth, a continued commitment to expanding jobs through appropriate policy is a must for the next FRB Chair. Dr. Yellen has demonstrated this commitment and understanding in her recent public speeches and actions at the FRB.</p>
<p>In conclusion, we believe that Janet Yellen is an extremely effective leader who has demonstrated her capacity to work with the other FRB governors and to bring important perspectives of the American people to her leadership and decisions.  In our opinion, she is the best possible leader for the Federal Reserve Board at this critical time in our nation's history.</p>
<p>Sincerely,</p>
</div>
</div>

A Group Of Economists Wrote An Open Letter In Favor Of Janet Yellen, And The List Of Names Is STACKED

<p><div class="image-container float_right"><div class="image"><img src="http://static5.businessinsider.com/image/523048e369beddd92ea48e76-1045-784/911-september-11-memorial.png?maxX=480" border="0" alt="9/11 september 11 memorial" width="480" /><p class="source on-image">REUTERS</p><p class="caption">Robert Peraza, who lost his son Robert David Peraza, pauses at his son's name at the North Pool of the 9/11 Memorial during tenth anniversary ceremonies at the site of the World Trade Center in New York, September 11, 2011.</p></div></div>Good morning. Here's what you need to know.</p>
<ul>
<li>Asian markets were mixed, with Japan's Nikkei closing up 0.01%; Korea's KOSPI up 0.49%; and Hong Kong's Hang Seng down 0.17%. European markets were also mixed, as were U.S. futures.</li>
<li>Last night, President Obama <a href="http://www.businessinsider.com/obama-speech-syria-2013-9">addressed the nation</a> on the need to take action in Syria. Though, when the president said that he had asked Congress to delay the vote in order to work on a diplomatic solution, <a href="http://www.businessinsider.com/market-reaction-to-obamas-syria-speech-2013-9">markets around the world spiked</a> (oil futures, on the other hand, <a href="http://www.businessinsider.com/oil-reaction-to-obama-syria-speech-2013-9">instantly dropped</a> before gaining back).Japan's business sentiment is on the rise. The <a href="http://www.businessinsider.com/business-sentiment-soars-in-japan-2013-9">business survey index (BSI) came in at 15.2 in July-September</a>, compared with 5.0 in April-June. Japan's stocks have been on a tear this week, aided by<a href="http://www.businessinsider.com/japan-q2-gdp-revised-up-2013-9"> positive GDP revisions</a> and the announcement of the 2020 Tokyo Olympics.</li>
<li>The latest survey from the National Federation of Independent Businesses showed that <a href="http://www.businessinsider.com/small-business-hiring-plans-surge-2013-9">more U.S. companies are saying they intend to hire</a> within the next three months.</li>
<li>More than 200 big name economics professors <span class="st">-</span> like Alan Blinder, Christina Romer, Joseph Stiglitz, and Robert Shiller <span class="st">-</span> have <a href="http://www.businessinsider.com/janet-yellen-open-letter-2013-9">signed an open letter asking President Obama to appoint Fed Vice Chair Janet Yellen</a> as Ben Bernanke's successor. "[Yellen's] knowledge of how the Fed sets policy, her understanding of the relationship between monetary policy and economic growth, and her ability to see and propose solutions to emerging economic problems is second to none," they wrote.</li>
<li>Bond king Jeff Gundlach of DoubleLine funds <a href="http://www.businessinsider.com/jeff-gundlachs-sept-10-presentation-2013-9">reiterated his calls for for interest rates and inflation to remain low in his latest webcast</a>. But Gundlach also addressed the bleak situation in emerging markets. "I would not own the Indian stock market," he said. "It looks very scary." Gundlach's position? "Long China, short India. Long Russia, short India."</li>
<li>The recent spate of positive economic data out of China <a href="http://www.businessinsider.com/cms/posts/edit?id=523043b76bb3f7c94ab4861f">has economists wondering if we have returned to investment-led growth in the country</a>, essentially adding more infrastructure projects amid ongoing concerns about overcapacity in the post-crisis years. As SocGen analysts wrote, "Although this set of data puts clear upward pressure on our short-term forecast, the dominating role of infrastructure played in the sudden turn-around confirms our concern over the sustainability."</li>
<li>The Greater Las Vegas Association of Realtors<a href="http://www.businessinsider.com/las-vegas-housing-inventory-2013-9"> has reported 19 months of rising prices and increased inventory</a>. Non-contingent inventory has spiked 41.1% year-over-year, meaning that inventory has perhaps bottomed and prices will begin to slow in one of America's most distressed housing markets.</li>
<li>There are<a href="http://www.businessinsider.com/chinese-billionaires-2013-9"> 315 dollar billionaires in China</a>, up 64% from a year ago, Agence France Presse reports. A Chinese luxury magazine named Wang Jianlin as China's richest man, with $22 billion. </li>
<li type="_moz">Today <a href="http://online.wsj.com/article/SB10001424127887323595004579067333597965944.html?mod=WSJ_hps_LEFTTopStories">marks the 12th anniversary of the 9/11 terrorist attacks</a>. New York City will have a tribute at the September 11 Memorial at the World Trade Center site, the Wall Street Journal's Heather Haddon reports. "The names of the 2,983 victims lost in 2001 and the bombing of the site in 1993 will be read. Six pauses will mark when the planes hit the towers, when they fell and when the Pentagon and Flight 93 were attacked," the Journal reports.</li>
</ul>

10 Things You Need To Know Before The Opening Bell

<p><img src="http://static6.businessinsider.com/image/4e3ac454eab8ea0a3300001d-456-342/janet-yellen.gif?maxX=586&amp;maxY=439" border="0" alt="janet yellen" width="586" height="439" /></p>
<p>The hottest idea in monetary policy circles over the last couple of years has been the notion that the Fed could induce a better recovery by stating a target for Nominal GDP.</p>
<p>The idea (which has been endorsed by economists like Scott Sumner, David Beckworth, Michael Woodford, Christina Romer, and others) is premised on the idea that if the <a href="http://www.businessinsider.com/michael-woodford-endorses-ngdp-targeting-2012-9">Fed can set aggressive expectations for its actions</a>, and commit to letting inflation run "hot" for periods of catch-up Nominal GDP growth, then economic participants will adapt to this forecast.</p>
<p>Although the idea is very buzzy in academic circles, it hasn't <em>quite</em> broken through yet to the <keyword id="6355253" type="ORGANIZATION" weightage="60" keywordseo="Federal-Reserve">Federal Reserve</keyword> itself, although the Fed did to a lot this year in terms of experimentation with guidance and easing, most notably adopting "Evans Rule" which commits to low rates until unemployment hits 6.5%, or inflation expectations surpass 2.5%, at which point the Fed may re-assess.</p>
<p>But in a new note out today, Goldman's Jan Hatzius and Jari Stehn say that one Fed official has already endorsed Nominal GDP targeting in all but name, and that nobody has really realized it yet.</p>
<p>That official is SF Fed Chief Janet Yellen, who is thought to be one of the top contenders for Bernanke's replacement.</p>
<p>Hatzius and Stehn write:</p>
<p style="margin-right: 0in; margin-bottom: 8.4pt; margin-left: 0in; padding-left: 30px;"><span style="font-size: 9.0pt; font-family: 'Arial','sans-serif';">...Fed officials appear to be contemplating an even bigger shift. This is evident from a series of speeches given by Vice Chair Janet Yellen in 2012 that presented simulations with the Board staff’s large-scale econometric model, FRB/US, using an “optimal control” approach to monetary policy. Under such an approach, the central bank chooses a path for the federal funds rate which best meets its objectives over the next several years as a whole, <span style="color: #ff0000;"><strong>even if this means committing to a policy that may appear suboptimal at certain points along the way</strong></span>. For example, the chosen path may imply that in 2013, the Fed expects inflation in 2015 to be above its target but nevertheless commits to refraining from an aggressive monetary tightening at that point. Economist Paul Krugman has referred to this approach, approvingly, as “credibly promising to be irresponsible.”</span></p>
<p>...</p>
<p style="margin-right: 0in; margin-bottom: 8.4pt; margin-left: 0in; padding-left: 30px;"><span style="font-size: 9.0pt; font-family: 'Arial','sans-serif';">So far, no sitting Fed official has publicly called for an NGDP target. But Yellen’s optimal control approach is equivalent to a specific form of such a target. <span style="color: #ff0000;"><strong>To our knowledge, nobody has pointed this out yet, although it is at least implicit in the academic literature on this issue</strong></span>. In a highly stylized model, Woodford has shown that the optimal policy at the zero bound is an NGDP target. In a simulation that also uses FRB/US—as does Yellen’s optimal control work—San Francisco Fed President John Williams and Fed economist David Reifschneider have shown that the optimal policy at the zero bound responds not only to current inflation and unemployment gaps but also their cumulated history. In other words, the optimal policy at the zero bound in FRB/US does not look like a Taylor rule but resembles an NGDP target.</span></p>
<p style="margin-right: 0in; margin-bottom: 8.4pt; margin-left: 0in;"><span style="font-size: 9.0pt; font-family: 'Arial','sans-serif';">The basic gist is: A nominal GDP target commits to periods of overly-hot inflation (irresponsibility) in order to get to a certain target.</span></p>
<p style="margin-right: 0in; margin-bottom: 8.4pt; margin-left: 0in;"><span style="font-size: 9.0pt; font-family: 'Arial','sans-serif';">And according to Goldman, Janet Yellen has basically endorsed the same thing, with the same economic consequences.</span></p>
<p style="margin-right: 0in; margin-bottom: 8.4pt; margin-left: 0in;"><span style="font-size: 9.0pt; font-family: 'Arial','sans-serif';"><a href="http://www.businessinsider.com/michael-woodford-endorses-ngdp-targeting-2012-9"><strong>For more on how NGDP targeting works, see here &gt;</strong></a><br /></span></p>

You Searched For "Christina Romer" and got 11 results

Former Obama Economic Advisor Has A Fascinating Idea For How We Should Deal With Future Recessions

Joe Weisenthal

ART CASHIN: Washington Has Proposed New Rules That Could Have 'Nuclear' Implications For Monetary Policy

Sam Ro

JACKSON HOLE: Here's The Program Schedule For The Kansas City Fed's Economic Policy Symposium

Sam Ro

New York Times Slams Larry Summers, And Comes Out Hard In Favor Of Janet Yellen For Fed Chair

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A bunch of top Democratic economists are lashing out at Bernie Sanders' economic plans

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ART CASHIN: It's Possible That The Larry Summers Fed Chair Candidacy Is Just A Ruse Orchestrated By The White House

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UBS: The Odds Of Bernanke Staying On As Fed Chair Just Went Up

Matthew Boesler

Goldman's Jan Hatzius Answers The 10 Most Important Questions For 2013

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A Group Of Economists Wrote An Open Letter In Favor Of Janet Yellen, And The List Of Names Is STACKED

Rob Wile

10 Things You Need To Know Before The Opening Bell

Steven Perlberg

GOLDMAN: A Top Fed Official Has Endorsed Nominal GDP Targeting, And Nobody Has Even Noticed It Yet

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