In the months leading up to the war with Iraq, the Federal Reserve warned that heightened "geopolitical risk" could harm the economy. Last week, President George W. Bush announced the end of combat operations in Iraq. Now that geopolitical risk is a smaller factor, can the economy return to an upward path? Is monetary or fiscal policy action still necessary?

The AEI Economy Watch series is an essential up-to-the-minute briefing on the current economic policy debate and the state of the economy, bringing together AEI’s team of economists, analysts, and special guests. Participants in this month’s breakfast event include David Malpass, Bear Stearns’ chief global economist; Kevin A. Hassett, director of economic policy studies at AEI; and Eric M. Engen and John H. Makin, resident scholars at AEI.