Our estimate of what that will take to close the output gap and return to full employment strongly implies the need for roughly $2 trillion in fiscal aid. … READ MORE >
fiscal aid
Biden outlines next round of fiscal aid
President-elect Joe Biden put forward an ambitious $1.9 trillion fiscal aid plan to address the public health crisis, the damage caused to the economy by the pandemic and the rollout of a national vaccination program. … READ MORE >
The case for assistance to state and local governments
More than 1.3 million state and local government jobs have been lost since December 2019. While this is the result of a broader economic shock across industrial sectors, we expect additional furloughs in state and local governments unless federal aid is quickly put in place. … READ MORE >
Late year fiscal aid lifts growth prospects for 2021
Congress on Dec. 21 passed a $2.3 trillion year-end spending bill, including $1.4 trillion to fund the federal government through September 2021 and a $900 billion rescue package to provide direct fiscal aid to households and businesses equal to 4.25% of GDP. This represents the second-largest economic aid measure in … … READ MORE >