Ed Dolan's Econ Blog

Archive for July, 2011

  • How Smart Fiscal Rules Keep Sweden’s Budget in Balance

    Almost three decades ago, Herbert Stein, the former Chairman of Nixon’s Council of Economic Advisers, lamented that the United States had no long-run budget policy—no policy for the size of deficits and for the rate of growth of the public debt over a period of years. He pointed out that Congress makes annual budget decisions […]

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  • How Intelligent Budget Rules Help Chile Prosper: Lessons for the US

    As everyone knows who has followed the current budget debate, U.S. fiscal policy needs more than a quick fix. It needs budget rules to put the debt and deficit on trajectories that are sustainable in the long run. Where better to look for workable rules than to countries that have done things right? Chile, which […]

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  • Is a 56.2 MPG Fuel Economy Standard Really a Good Idea?

    According to news reports, the Obama administration is talking to automakers about raising the Corporate Average Fuel Economy standard for passenger cars to 56.2 miles per gallon by 2025, more than double the  27.5 MPG in force for the 20 years up to 2010. Economists, even those like myself who favor policies to reduce fuel […]

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  • Yes, The U.S. Needs Fiscal Policy Rules, but Not Hatch-Lee

    Sometimes the United States is slow to join a global trend. Fiscal policy rules are a case in point. Economists love the idea of rules that decouple tax and spending policies from short-term politics and focus instead on long-term growth and sustainability. Such rules used to be rare; as recently as 1990, they were in […]

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