Last night, Christina Romer, the Chair of the Council of Economic Advisors, spoke at the National Economists Club’s annual dinner. She was introduced by the Office of Advocacy’s Chief Economist Chad Moutray, who also serves as the president of the club. Dr. Romer spoke about similarities and differences in the economic climate of the 1930s during the Great Depression and the current economic downturn, in what many have dubbed the “Great Recession.” In many ways, her remarks mirrored her testimony earlier this year to the Economic Policy Subcommittee of the Senate Committee on Banking, Housing and Urban Affairs. She outlined several lessons that we have learned from the mistakes of the 1930s, and in particular, she noted the “bold” actions taken over the course of the last year – both by the Federal Reserve and through fiscal policy – which have prevented this recession from becoming much more severe. During Q&A, she also noted the Administration’s desire for financial regulatory reform. She also noted the importance of entrepreneurship in terms of job creation and innovation, and she stressed the need for greater access to capital for small firms.
Media coverage of this event has focused on the risks that still exist in our current economy, with Dow Jones Newswires quoting her saying that “now is not the time to take a victory lap.” CNN, meanwhile, put many of her remarks in the context of current Administration proposals for a Consumer Financial Protection Agency, health care reform, and the use of the Troubled Asset Relief Program (TARP) to “calm fears” and inject needed capital into the financial sector.
Chad Moutray, Chief Economist for the Office of Advocacy, with Christina Romer,
Chair of the Council of Economic Advisors, at the National Economists Club's annual dinner.
9 responses so far ↓
1 Jake // Oct 23, 2009 at 10:21 pm
The steps taken last year certainly were bold. Thank god things did not get worse in our economy. and hey look at the positive side, Economists all over the world will learn so much from it. it was a large enough field experiment to cancel out noise.
2 Andrea Jackson // Nov 14, 2009 at 11:58 pm
It’s certainly not over yet and we are so fortunate to be able to study mistakes of the past and to have the communications technology that allows almost instant access to all that is happening throughout the world.
3 Weight Loss Diet // Nov 16, 2009 at 9:46 pm
She also noted the importance of entrepreneurship in terms of job creation and innovation, and she stressed the need for greater access to capital for small firms.
4 keyboard // Nov 19, 2009 at 1:23 am
Hi,
I think the great depression of the 1930s was the most traumatic economic event of the twentieth century. It was especially shocking when one considers the great advances that had been achieved in Western living standards since the turn of the century.
5 Nashville Movers // Jan 12, 2010 at 10:45 pm
Although we’ve learned a lot from the 30s, the present economy has actually had some drops that are worse than what was experienced then, even with the safeguards mentioned. That’s a bit scary.
6 best sports bra // Jan 12, 2010 at 10:48 pm
I’d have to agree with Nashville that a lot of what’s happening today is worse than the 30s. Maybe it’s just a scaling thing, but it’s still is cause for some very careful administration.
Thnx,
Dee
7 Rosie Peters // Feb 21, 2010 at 3:34 am
Just when it seems better, Obama is borrowing even more from China and Wall st is business as usual with no lessons learned. I can see a dead cat bounce coming on….
8 Air Swiss Humidifier // Mar 3, 2010 at 12:57 am
Ms. Romer was in the news again this past weekend, and when I heard her speak she didn’t seem to make sense. I just couldn’t follow the logic of her policy statements, and she looked as if she didn’t believe them herself. That has me very concerned.
Gretchen
9 Womans Costume // Jul 11, 2010 at 5:58 am
Ms. Romer continues in the news as she releases her report on the Employment Situation in the country. But is it really fair to say that unemployment is going down when the administration has just stopped counting people who have given up on looking for work?
-Julie