15 Martin Feldstein Quotes for You to Enjoy

Martin Feldstein

American Economist

Born: Nov 25, 1939

Competitive Dollar Finance Financial Inflation Will

Related authors: Alan Greenspan Herbert A. Simon John Kenneth Galbraith Milton Friedman Paul A. Volcker Richard Thaler Robert Reich Thomas Sowell

A rise in the level of saving can reduce aggregate activity temporarily but only a sustained high level of saving makes it possible to have the sustained high level of business investment that contributes to the long-run growth of output. Martin Feldstein

Business Saving Possible High High Level Temporarily Rise Only Output Investment Makes Reduce Sustained Aggregate Activity Growth Level

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 real estate to the rest of the world. Martin Feldstein

Finance World Real Estate Rest Deficit Borrow Like Trade Trade Deficit Real Sell Stocks American Estate Businesses Assets

The good news is that a competitive dollar in the global market and a strong dollar at home are compatible in both the long run and during the transition to a more competitive dollar. Martin Feldstein

Good Home News Strong Good News Long Market Run More Both Long Run Global Global Market Dollar Transition Compatible Competitive

The more competitive value of the dollar turned around the trade deficit. Martin Feldstein

Value Deficit More Around Trade Trade Deficit Dollar Turned Competitive

Domestic inflation reflects domestic monetary policy. Martin Feldstein

Inflation Policy Domestic Reflects Monetary Monetary Policy

An increase in the relative price of products from the low wage manufacturers in Asia and Latin America will also make those products less attractive to American consumers. Martin Feldstein

But the primary reason for wanting the dollar to become more competitive in the near future is that we may need an increase in exports this year and in 2007 to sustain the economy's current pace of expansion. Martin Feldstein

Future Become Year Increase More Primary Economy Dollar Expansion Current May Sustain Wanting Pace Reason Exports Near Competitive Need

Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more. Martin Feldstein

If the Federal Reserve pursues a strong dollar at home while the dollar becomes more competitive in global markets, we can achieve both price stability and a more balanced path of economic growth. Martin Feldstein

Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work. Martin Feldstein

Work Government Increased Innovate Spending Weaken Out Run Temporary Crowd Output Higher Invest Higher Levels Higher Taxes Investment Demand Longer Reducing Private Stimulus Provide Private Investment Government Spending Taxes Require Incentives Growth Levels Save

Inflation is lower and more stable and the real business cycle fluctuations are more modest. Martin Feldstein

Business Inflation More Real Stable Modest Lower Cycle

First, I think the science of monetary economics has clearly gotten better. Martin Feldstein

Science Better First Economics Think Clearly Gotten Monetary

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

Time Home Took Monthly Spent Out Cash Consumer Mortgages Like Obtained Reduced Same Same Time Much Payments Who

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