Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Much of the cash obtained by refinancing was spent on consumer durables, home improvements and the like. — Martin Feldstein Copy Share Image
In short, both experience and economic theory imply that the US could now t to a more competitive dollar without experiencing either increased inflation… — Martin Feldstein Copy Share Image
The more competitive value of the dollar turned around the trade deficit. — Martin Feldstein Copy Share Image
Inflation is lower and more stable and the real business cycle fluctuations are more modest. — Martin Feldstein Copy Share Image
Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out… — Martin Feldstein Copy Share Image
I think that over the last few decades, we have seen better economic outcomes than in the past. — Martin Feldstein Copy Share Image
And finally, no matter how good the science gets, there are problems that inevitably depend on judgment, on art, on a feel for financial… — Martin Feldstein Copy Share Image
Thirty years ago, many economists argued that inflation was a kind of minor inconvenience and that the cost of reducing inflation was too high… — Martin Feldstein Copy Share Image
Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar… — Martin Feldstein Copy Share Image
First, I think the science of monetary economics has clearly gotten better. — Martin Feldstein Copy Share Image
But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more… — Martin Feldstein Copy Share Image
To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and… — Martin Feldstein Copy Share Image
But then in April of 1985 the dollar began a sharp decline. The dollar's trade weighted value fell 23 percent in just 12 months… — Martin Feldstein Copy Share Image
We pay some price when necessary to bring down inflation but that price is temporary and is not large relative to the permanent gain… — Martin Feldstein Copy Share Image
A rise in the level of saving can reduce aggregate activity temporarily but only a sustained high level of saving makes it possible to… — Martin Feldstein Copy Share Image
