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Blog Post Jan 28, 2021

The Macroeconomic Implications of Biden’s $1.9 Trillion Fiscal Package

In this piece, Wendy Edelberg and Louise Sheiner project the effect of the Biden package on GDP. They project that if the Biden package were enacted, GDP would reach the Congressional Budget Office’s (CBO) pre-pandemic GDP projection after the third quarter of 2021, exceeding it by 1 percent in the fourth quarter. In the middle of 2022, GDP would show a temporary and shallow decline and then grow at an annual rate of about 1.5 percent, coming close to the path projected just before the pandemic.

Blog Post Oct 12, 2020

What Could Additional Fiscal Policy Do for the Economy in the Next Three Years?

This analysis shows the effects on economic activity, as measured by the Gross Domestic Product (GDP), of illustrative versions of several policies. Specifically, researchers examine five policies: a second round of checks to households, a resumption of enhanced unemployment insurance benefits, aid to state and local governments, support for small businesses, and other forms of fiscal support.

May 16, 2019

Recession Ready: Fiscal Policies to Stabilize the American Economy

Slowdowns in the economy are inevitable. While it may be tempting to rely on Federal Reserve policy as a lone response to recessions, this would be a mistake; we know that fiscal stimulus is effective. Rather than wait for a crisis to strike before designing discretionary fiscal policy, we would be better served by preparing in advance. Enacting evidence-based automatic stabilizer proposals before the next recession will help the next recovery start faster, make job creation stronger, and restore confidence to businesses and households.