• How does Congress react to budget deficit projections?

  • 2024/11/20
  • 再生時間： 22 分
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How does Congress react to budget deficit projections?

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  • Fiscal deficit projections are used by policymakers to understand the trajectory of U.S. debt. Between 1984 and 2003, Congress was responsive to these projections, raising taxes and cutting spending when projections showed that the deficit would grow. However, since 2004, fiscal policy has ceased being responsive to debt projections regardless of the party in power. In a new paper, “Robust Fiscal Stabilization,” Alan Auerbach and Danny Yagan of the University of California, Berkeley, quantify this phenomenon by comparing fiscal legislation across the two periods. On this episode, Auerbach discusses the findings and their implications with Brookings Senior Fellow William Gale.

    Show notes and transcript

    The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to podcasts@brookings.edu.
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あらすじ・解説

Fiscal deficit projections are used by policymakers to understand the trajectory of U.S. debt. Between 1984 and 2003, Congress was responsive to these projections, raising taxes and cutting spending when projections showed that the deficit would grow. However, since 2004, fiscal policy has ceased being responsive to debt projections regardless of the party in power. In a new paper, “Robust Fiscal Stabilization,” Alan Auerbach and Danny Yagan of the University of California, Berkeley, quantify this phenomenon by comparing fiscal legislation across the two periods. On this episode, Auerbach discusses the findings and their implications with Brookings Senior Fellow William Gale.

Show notes and transcript

The Brookings Podcast on Economic Activity is part of the Brookings Podcast Network. Subscribe and listen on Apple, Spotify, or wherever you listen to podcasts. Send feedback email to podcasts@brookings.edu.
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