Brookings Briefing: "New Brookings Study: The Economic Effects of Long-Term Fiscal Discipline" 12/16/2002
From: Brookings Office of Communications, 202-797-6105 communications@brookings.edu http://www.brookings.edu/comm/events/20021217.htm What: "New Brookings Study: The Economic Effects of Long-Term Fiscal Discipline" When: Tuesday, December 17, 2002 10 a.m. -- 11:30 a.m. Where: Falk Auditorium The Brookings Institution 1775 Massachusetts Avenue, NW Washington, D.C. Presentation by: WILLIAM G. GALE Deputy Director and Arjay and Frances Fearing Miller Chair, Economic Studies, Brookings; Co-Director, Tax Policy Center PETER R. ORSZAG Joseph A. Pechman Senior Fellow, Economic Studies, Brookings The last two years have seen a sizable reversal in the federal budget, from solid surpluses to budget deficits. Some have expressed concern that the deficits will reduce national saving and future national income and put pressure on long-term interest rates. The Bush administration, however, has rejected these concerns. Glenn Hubbard, chairman of the Council of Economic Advisers, has stated that there is "no evidence" that deficits affect interest rates. A new Brookings study re-examines these issues. The study finds widespread support for the view that lack of fiscal discipline hurts prospects for future national income and raises current interest rates. The study shows that a careful review of recent evidence, previous research, several major macro-econometric models, and the views of leading economists and policymakers lead to the same conclusion. The study, written by Brookings senior fellows William Gale and Peter Orszag, is titled, "The Economic Effects of Long-Term Fiscal Discipline" and will be distributed and discussed at this forum. This press briefing at Brookings is being hosted in conjunction with the Urban Institute-Brookings Institution Tax Policy Center. RSVP: Please contact the Brookings Office of Communications by calling 202-797-6105, e-mailing to communications@brookings.edu, or visiting us online at http://www.brookings.edu/comm/events/20021217.htm. |