Macroeconomic Analysis Division

Focusing on the economic "big picture"

The Macroeconomic Analysis Division advises the Congress on macroeconomic issues and issues related to financial markets. Its analyses range from short-term macroeconomic projections through dynamic general-equilibrium modeling. The division has several key responsibilities:

• Evaluating the macroeconomic impact of a wide range of fiscal policies--everything from changing the nation's tax system to reforming Social Security and instituting policies to limit greenhouse gases
• Using the tools of modern financial analysis to improve the measurement, analysis, and presentation of costs of the federal government's complex financial activities, including credit and insurance programs, other contingent claims, deferred cash payments, and federal investment in risky securities
• Studying major developments in the economy, such as systemic risk in financial markets and trends in productivity and participation in the labor force
• Preparing economic projections, which serve as the economic assumptions for CBO's projections of the federal budget and help the House and Senate Budget Committees develop their concurrent resolutions on the budget

The division collaborates extensively with other parts of CBO. Besides helping to produce CBO's twice-yearly Budget and Economic Outlook, the division works with other CBO staff on macroeconomic issues involving tax policy, macroeconomic modeling of environmental, health, and energy matters, and issues related to Social Security.

The Macroeconomic Analysis Division employs approximately 26 Ph.D.-level economists. It also offers opportunities to a few assistant analysts--many of whom go on to graduate school after working at CBO. The division gives economists who are interested in public policy a unique opportunity to apply their training in economics. Its staff write CBO studies, draft testimony to be delivered at Congressional hearings, and carry out original research for publication in academic journals.

The division offers a collegial work environment. New analysts are often teamed with more experienced staff during their first research projects, and their work is supported by their colleagues within the division and by other economists at CBO. Analysts discuss their work in progress and comment on the work of others during CBO-wide seminars. As is true with all of CBO, the Macroeconomic Analysis Division provides an intellectually challenging environment where analyses help inform the debate over national policy.