Clark Center Forum

 

 

This week’s IGM Economic Experts Panel poll statements:

A) Credible assumptions for inflation, GDP growth and primary budget deficits in Italy imply that either the Debt-to-GDP ratio in Italy would increase sharply if Italian interest rates on 10-year government debt remained at the November 30 level of around 7 percent or Italy would lose access to the bond market.

B) Absent outside help to deal with runs, such as a pledge of fiscal support from Germany or an unlimited commitment by the ECB to buy bonds, there is no spending-and-tax plan Italy can announce that would be credible enough to hold its interest rates low enough to stabilize its Debt-to-GDP ratio. 

 

Freakonomics Blog November 30, 2011 Professors Christian Leuz, Anil Kashyap, and Randall Kroszner participated in a Freakanomics Quorum, in which they offered their thoughts on the following questions: “In light of the recent European debt crisis, what do you think will happen to the euro? In your opinion, what should happen to the euro?” Read […] 

This week’s IGM Economic Experts Panel poll statement:

There are no consequential distortions created by the tax preference that favors obtaining health insurance through employers.  

 

This week’s IGM Economic Experts Panel poll statement:

Federal mandates that government purchases should be “buy American” unless there are exceptional circumstances, such as in the American Recovery and Reinvestment Act of 2009, have a significant positive impact on U.S. manufacturing employment. 

 

This week’s IGM Economic Experts Panel poll statements:

A) Eliminating tax deductions for non-investment personal interest expenses (e.g., on mortgages), with reductions in personal tax rates that are both budget neutral and keep the burden of taxes by income group the same, would lead to more efficient financing decisions by individuals.

B) Reducing the deductibility of interest expenses for non-financial businesses to equalize the overall tax cost of debt and equity financing, while using the extra revenue to reduce personal and corporate tax rates in a budget neutral fashion that also keeps the burden of taxes the same, would lead to more efficient financing decisions by firms.