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Friday, November 20, 2009
 
 
RESEARCH   AREAS
 
AEI on the Economic Crisis and the Stimulus
 

When President Obama signed the American Recovery and Reinvestment Act on February 17, 2009, he said, "With a recovery package of this size comes a responsibility to assure every taxpayer that we are being careful with the money they work so hard to earn." AEI scholars have examined the structure of the stimulus package, and they have also followed its progress and promises. This section of the website gathers work done by scholars on the current economic problems, from its roots in the subprime mortgage crisis to the continuing debate over fiscal stimulus policies.

 
Feature: Bernanke's Reappointment
Related Work

In June, Kevin A. Hassett predicted that President Barack Obama would reappoint Ben Bernanke to serve as the chairman of the Federal Reserve. Hassett based his prediction on two things. First, the lack of tough questioning by Democratic congressional leaders at Bernanke's testimony on the Fed's handling of the Bank of America Corp. merger with Merrill Lynch. Second, on precedent: during their first terms, each of the last four presidents has reappointed the sitting Fed chairman. Opinion at AEI about the reappointment is not unanimous. On Forbes.com, Desmond Lachman criticized the appointment, noting that President Obama appears to remember only the valiant role Bernanke played during the past nine months of the financial crisis while choosing to forget the role he could have played in dealing with the issues that got us into the crisis. Still, Lachman wishes him well and hopes for a more successful second term. John H. Makin differs with Lachman: "He's the best person for the job," Makin said. "Why would anyone want to change the Fed chairman now?"

Related Economic Outlooks by Makin:

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
TARP on a Businesslike Basis
 
The Troubled Asset Relief Program should be run like a business with a goal of returning as much of the involuntary investment as possible to its owners--the taxpayers--along with a reasonable overall profit.
 
The Job-Killing President and Congress
 
In the face of the worst jobless rate in twenty-six years, the Obama administration and congressional Democrats do not seem to realize that adopting bad policies kills jobs.
 
Education Reforms . . . or Union Jobs?
 
Washington spent almost $68 billion more on education in fiscal 2009 than it otherwise would have. What has the economic-stimulus funding actually bought?
 
U.S. Should Try Germany's Unemployment Medicine
 
Work-sharing would do the trick. The sad fact is, the labor market is still bleeding jobs. German medicine might help.
 
 
Privatizing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks Why and How
 
This book argues that privatization of the government-sponsored enterprises is the only viable way to protect the taxpayers and the economy.  
 
Serving Two Masters, Yet Out of Control Fannie Mae and Freddie Mac
 
Because two disparate clients demand loyalty from Fannie Mae and Freddie Mac, these government-sponsored entities must fulfill two ultimately irreconcilable roles.  
 
Nationalizing Mortgage Risk The Growth of Fannie Mae and Freddie Mac
 
Fannie Mae and Freddie Mac have aggressively used their government support to achieve extraordinarily high profitability and domination of the residential mortgage market.  
 
 
PAST EVENTS
 
 
At this AEI event, experts will discuss the future of the CFPA bill in the House and Senate and whether it has the potential to effectively reform the financial system.
 
 
At this AEI event, Carmen M. Reinhart and Kenneth Rogoff discuss their new book, which probes an array of crises to show why the four most dangerous words in finance are "this time is different."
 
 
Panelists will address the domestic and global financial outlook for the next six months and policy prescriptions for the mortgage market.