The term "midnight regulations" describes the dramatic spike of new regulations promulgated at the end of presidential terms, especially during transitions to an administration of the opposite party. As commentators have pointed out, this phenomenon is problematic because it is the result of a...

In this policy brief we discuss what economists know (and don’t know) about fiscal spending multipliers. We then review the growing economic literature on the relationship between the fiscal position and the size of the fiscal multiplier. In addition, we explore the inflationary risks that...

The debt ceiling (or limit), the legal limit the federal government may borrow, is set currently at $14.294 trillion. In his latest report, Secretary of the Treasury Timothy Geithner predicts that the United States will reach the current debt ceiling around May 16, 2011, and the Congressional...

Supporters of the Small Business Administration's loan program argue that it is necessary because traditional sources of credit do not provide loans for the purposes, in the amounts, and with the terms required by small business borrowers. However, a large economic literature dismisses this...

A growing number of economists hold the view that the US government’s growing debt is nothing to worry about. They believe this because real interest rates are not only historically low but are also forecast to stay low for a long time. As such, the government can carry high debt levels...

On Monday, May 16, 2011, the United States reached the current statutory limit on the federal government's borrowing power, the debt limit or debt ceiling, of $14.294 trillion. In theory, reaching the debt limit constrains the Treasury's regular methods of financing federal activities or meeting...

This study reviews the applicability of new definitions of fiscal sustainability that place greater emphasis on the historical trend of falling nominal interest rates. We explore how these now-broadly applied definitions are misleading and potentially dangerous. In addition, it is important to...

In the next year, lawmakers will consider different options for Social Security reform. In order to adopt the best policies, they must have all the facts. Unfortunately, much rampant confusion exists about how the Social Security trust funds operate. Some question whether the bonds held as...