Council of Economics Advisers chair Christina Romer was Tom Ashbrook's guest today On Point. Ashbrook was asking Romer and listeners whether it is time for a second stimulus package. Romer wouldn't commit to a clear yes or no. For example:
TOM ASHBROOK: What would it take for you to say, “You know what, we tried, but it wasn’t enough, it’s time to pull the trigger”? 10.5 percent unemployment? 11 percent unemployment? What would it take for you to advise that?
CHRISTINA ROMER: I think the crucial thing is: What’s the direction that we’re moving in, right? So one of the things that, you know, I think people have forgotten is just what the economy — I’m sure they haven’t forgotten — what the economy was like in December and January. We were truly an economy in freefall. And I think one of the things we’ve been seeing is moderating conditions. We’ve started to see some of those leading indicators, like building permits, orders for durable goods — those kind of things that tend to turn around before the actual economy turns around. You know, what I’m going to be looking at is, Are we on the right path? And certainly we do have to give the stimulus the time to have an effect. Simply because we do know we’re getting a lot more money out the door in the next several months, and we’ll be getting a read on, Is that doing what we think it should be doing?
The interview is worth a listen, and while Romer doesn't say yes or no to a Stimulus II, she doesn't run away from the issues. Take a listen here.
Posted
07-09-2009 4:17 PM
by
Graham Griffith