Most liberal economists seem to think that we need a much bigger stimulus package than the one we passed in February. However, most liberal economists also seem to think that Barack Obama ought to listen to Paul Volcker more than he does. So now what do they think?
The U.S. economy is “leveling off at a low level” and doesn’t need a second fiscal stimulus package, said former Federal Reserve Chairman Paul Volcker, one of President Barack Obama’s top economic advisers.
Volcker, head of Obama’s Economic Recovery Advisory Board, said the 6.1 percent decline in first-quarter gross domestic product reported by the government today was “expected.” More recent data show the contraction in housing, business spending and inventories has slowed, and stimulus spending is only just beginning to hit the economy, he said.
That’s from Bloomberg Television’s “Conversations with Judy Woodruff,” which will air this weekend. There was also this about regulatory reform:
Volcker said he and National Economic Council Chairman Lawrence Summers have disagreed about how heavily regulated the financial industry should be.
“We’ve had a little talk about this,” Volcker said. “I’m sure he’ll recognize the wisdom of my views sooner or later.”
That’s a conversation it would be interesting to hear more about, wouldn’t it?