http://paul.kedrosky.com/archives/2010/07/hatzius_the_us.html
Goldman Sachs economist, who I think is pretty good as these types go, forecasts restrictive fiscal policy dampening growth. On Tue, Jul 27, 2010 at 11:52 AM, Jim Devine <[email protected]> wrote: > CBO Changes Methodology for 2010 Long-Term Budget Projection > > Immediate Release: July 27, 2010 > Contact: Alan Barber, (202) 293-5380 x115 > > Washington, D.C.- The Congressional Budget Office (CBO) is generally > trusted as an impartial agency without a political agenda. A new study > from the Center for Economic and policy Research (CEPR), however, > calls attention to a change in the most recent long-term budget > projections that is a departure from CBO's past methodology and > results in stark differences in projections for the impact of deficits > on economic growth. > > "While there is no universal model to apply to these types of > projections, it is unusual that the CBO would, without explanation, > make a change that so significantly alters long term projections," > said Dean Baker, a Co-Director of CEPR and author of the report. > > "Has CBO Joined the Push for Cutting Social Security," notes that the > CBO has changed its modeling of the impact of deficits and debt on > private investment. The result is that the long-term budget > projections for 2010 show far more crowding out of investment than the > 2009 projections, leading deficits to have a substantially more > negative impact on GNP growth. These growth projections have been > accepted in the media and many policy discussions as reliable > projections for the impact of deficits on growth. > > At a time when Congress is poised to make significant decision on the > future of the America's most important social programs, it is > essential that policymakers understand the unusual nature of these > latest projections. > > The full report can be found here > [http://www.cepr.net/documents/publications/cbo-2010-07.pdf]. > > > -- > Jim Devine > "All science would be superfluous if the form of appearance of things > directly coincided with their essence." -- KM > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l >
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