Report September 2002

Newly released Congressional Budget Office figures show that the government’s fiscal stance in 2000 was tighter than at any time in the previous 40 years, with imbalances financed in recent years by dramatic increases in the level of private debt—a trend that cannot be sustained indefinitely. Summarized in this issue of the Report, the Institute’s latest Strategic Analysis assesses the likely implications of the coming adjustments in private borrowing for the economy as a whole.

Contents: Strategic Analysis: Strategic Prospects and Policies for the US Economy * New Working Paper topics include: prospects for the renewal of the Community Reinvestment Act; an assessment of monetarism; asset prices, liquidity preference, and the business cycle; and state policies and growth. * Project Report: Economic Well-Being. * Also included are the names of new research associates and members of the Board of Governors.