6 Items

Blog Post - Views on the Economy and the World

Fiscal Education for the G-7

| May 26, 2016
As the G-7 Leaders gather in Ise-Shima, Japan, on May 26-27, the still fragile global economy is on their minds.  They would like a road map to address stagnant growth. Their approach should be to talk less about currency wars and more about fiscal policy.Fiscal policy vs. monetary policyUnder the conditions that have prevailed in most major countries over the last ten years, we have reason to think that fiscal policy is a more powerful tool for affecting the level of economic activity, as compared to monetary policy.

Blog Post - Iran Matters

Cardin introduces Iran Policy Oversight Act of 2015

| Oct. 04, 2015

Henry Rome reviews the latest version of the Iran oversight legislation drafted by Sen. Ben Cardin (D, Maryland). Since publishing a “discussion draft” last month, Cardin removed language related to Iranian production of highly enriched uranium (HEU) but retained sections permitting new terrorism sanctions and increasing defense assistance to Israel.

Blog Post - Iran Matters

Hezbollah's Friends in Yemen are Trying to Lure the Saudis into a Ground War

| June 12, 2015

Daniel Sobelman, research fellow with the International Security Program at the Belfer Center for Science and International Affairs, writes in Foreign Policy that the Houthi rebels in Yemen are following a similar operational strategy to the one pursued by Hezbollah during its 2006 war with Israel. He argues that the Houthis share operational links with Hezbollah. These links between the organizations can be best discerned by analyzing the rhetoric of Hezbollah Secretary General Hassan Nasrallah, who has stated that Hezbollah's fight against Israel in 2006 provides a model for organizations and groups operating against militarily superior forces. In this model, the actions of the Houthis to attack Saudi border towns and garrisons are part of a broader strategy of forcing Saudi Arabia to deescalate its air campaign or force it to engage with ground forces, an outcome that would favor the Houthis. He concludes that while it is impossible to know what the exact effects of the Houthi retaliatory measures against Saudi targets, it is clear that more than air power will needed to end the Houthi threat to Saudi Arabia.

Blog Post - Iran Matters

Inside the Nuclear Weapon Free Iran Act of 2013

| Dec. 19, 2013

News broke yesterday that three prominent senators—Menendez (D-NJ), Kirk (R-IL), and Schumer (D-NY)—may introduce legislation this year that would impose new sanctions against Iran with a “deferred trigger.” That is, the new sanctions can be averted only if the Obama administration provides specific and difficult certifications every 30 days including that Iran is implementing the terms of the November 24 Joint Plan of Action and negotiating “in good faith” toward a final deal. Based on an advance copy of the “Nuclear Weapon Free Iran Act of 2013,” I summarize the substance of the draft legislation, including both the new proposed sanctions and the complicated set of presidential certifications and notifications to waive existing sanctions and suspend the additional sanctions.  In a second post, I examine the current legislative state of play and the likely administration objections to the draft legislation.

Blog Post - Iran Matters

Anticipating objections to the Nuclear Weapon Free Iran Act

| Dec. 19, 2013

In the near term, the Obama administration does not yet need to engage Senators Menendez, Kirk, and Schumer on the details of their proposed Nuclear Weapon Free Act of 2013. The upcoming congressional recess and the protection of friendly senators (including Senate Majority Leader Harry Reid and Chairman of the Senate Banking and Finance Committee Tim Johnson) are likely to delay consideration of the bill for the time being. However, congressional support for sanctions legislation against Iran has strong bipartisan support, and pressure for additional legislation is likely to grow if – as seems likely – it becomes apparent in coming months that negotiations between the P5+1 and Iran on a final agreement are not faring well. In the event that the Obama administration is forced to enter into negotiations with Congress on new sanctions legislation, the White House is likely to have several objections to the proposed Senate legislation, especially on the certification requirements to waive or suspend sanctions.

Blog Post - Views on the Economy and the World

The US & Europe Could Look South to Re-learn Countercyclical Fiscal Policy

| Oct. 28, 2010
During much of the last decade, U.S. fiscal policy has been procyclical, that is, destabilizing.   We wasted the opportunity of the 2003-07 expansion by running large budget deficits.   As a result, in 2010, Washington now feels constrained by inherited debts to withdraw fiscal stimulus at a time when unemployment is still high.   Fiscal policy in the UK and other European countries has been even more destabilizing over the last decade.  Governments decide to expand when the economy is strong and then contract when it is weak, thereby exacerbating the business cycle.