Martin Feldstein

July 25, 2012

"A Rapid Fall In The Euro Can Save Spain From Collapse"

Op-Ed, Financial Times

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

"The possible breakup of the eurozone is now openly discussed by policy officials and financial executives. The interest rate on Spanish government debt has soared above 7 per cent...Greece is likely to fail its inspection by the 'troika', bringing it closer to a eurozone exit by the autumn [and} even Germany is under financial pressure," writes the Belfer Center Board member Martin Feldstein, "The last eurozone summit ended with an optimistic communiqué but nothing of substance. Meanwhile, financial markets may already be in the process of forcing a solution upon Brussels policy makers. The declining value of the euro holds the key to the eurozone’s survival."

April 29, 2012

"The Economy and the Presidency"

Op-Ed, Project Syndicate

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

With the U.S. presidential election a mere six-months away, it's outcome will largely depend on how the economy performs between now and election day, and the public's perception of that performance, writes Martin Feldstein, the George F. Baker Professor of Economics at Harvard University and Belfer Center Board member. "The polls are very close, and voters have not yet locked in their decisions....but the state of the economy is usually the most important determinant of who wins national elections in the United States. And US economic conditions now favor Romney," he writes.

March 20, 2012

"Obama tax rises threaten US recovery"

Op-Ed, Financial Times

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

The recent payroll gains and the declining unemployment rate in the US have raised hopes that the economy will now start growing faster than the tepid 1.7 per cent rate last year. Optimists are expecting growth rates as high as three per cent for this year and next.

December 20, 2011

"A Weak Euro is the Way Forward"

Op-Ed, Financial Times

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

The large current account deficits of Italy, Spain and France can be reduced without lowering their incomes or requiring Germany to accept inflationary increases in its domestic demand. The key is to expand the net exports of those trade deficit countries to the world outside the eurozone.

November 30, 2011

"Italy can save itself and the euro"

Op-Ed, Financial Times

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

Harvard University economics professor Martin Feldstein argues that Italy is capable of bailing themselves out of the economic crisis without the EC's help.

AP Photo

October 24, 2011

"The Tax Reform Evidence from 1986"

Op-Ed, Wall Street Journal

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

Experience implies that the combination of base broadening and rate reduction would raise revenue equal to about 4% of existing tax revenue writes Martin Feldstein.

October 13, 2011

"How to Stop the Drop in Home Values"

Op-Ed, New York Times

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

"Both the Obama administration and Republican leaders in Congress have resisted the only real solution: permanently reducing the mortgage debt hanging over America," writes Martin Feldstein. The resistance is understandable, he says, "But failure to act means that further declines in home prices will continue, preventing the rise in consumer spending needed for recovery. As costly as it will be to permanently write down mortgages, it will be even costlier to do nothing and run the risk of another recession."

August 1, 2011

"A Falling Dollar Will Mean a Faster U.S. Recovery"

Op-Ed, Wall Street Journal

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

Despite the eurozone's financial crisis, the dollar has fallen 15% against the euro during the past 12 months and more than 10% in inflation-adjusted terms against all currencies. Looking ahead, fundamental market forces are likely to drive the dollar down further over at least the next few years relative to a broad basket of other currencies.

If that happens, it will strengthen the U.S. economy. A falling dollar may be the only major economic change that can accelerate the anemic pace of recovery and prevent a new downturn in U.S. economic activity.

June 8, 2011

"The Economy Is Worse Than You Think"

Op-Ed, Wall Street Journal

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

Expect more bad news until someone enacts a plan to bring deficits under control without raising taxes.

March 2, 2011

"Quantitative easing fits profile in American rebound mystery"

Op-Ed, The Age

By Martin Feldstein, George F. Baker Professor of Economics at Harvard University

There is no doubt the American economy rallied strongly at the end of last year, Martin Feldstein writes. "But how much of that was due to the US Federal Reserve's temporary policy of so-called 'quantitative easing'? And what does the answer mean for the US economy this year?"