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NABE Policy Survey: Tighter Economic Policies Needed, But Not Immediately

March 04, 2013, 07:00 AM
Filed Under: Economic Commentary

The NABE March 2013 Economic Policy Survey presents the consensus of a panel of 196 members of the National Association for Business Economics. Conducted semiannually, the latest survey was conducted between January 21, 2013, and February 13, 2013. Portions of this survey may be reprinted in whole or in part with credit given to NABE. 

“The National Association for Business Economics (NABE) recently surveyed its members on a number of policy issues,” said NABE Policy Survey Committee Chair Jay Bryson, Global Economist at Wells Fargo Securities. “Regarding fiscal policy, a significant majority of panelists was opposed to full budget sequestration. However, there was nearly unanimous agreement that some form of deficit reduction should be enacted over the next 10 years. The preferred approach to long-term deficit reduction leaned toward spending cuts, with most respondents indicating that cuts should be focused primarily on entitlement programs. The panel was also heavily in favor of individual income tax reform, with the majority of participants preferring reform that raises revenue.”

A slight majority of the respondents indicated that monetary policy is “about right” at present, although the percentage responding that policy was “too stimulative” was significantly higher than the share that held that view in the September survey. Although most panelists felt that the Federal Reserve’s quantitative easing (QE) has been successful, most also favored termination of additional asset purchases sometime in 2013. Only five percent of respondents look for the Fed to hike interest rates in 2013, with the vast majority of the panel suggesting that the fed funds rate will not increase until 2014 or 2015. The panel was evenly divided on whether or not the Federal Open Market Committee should have an unemployment threshold in its forward policy guidance.

Read the full March 2013 NABE Policy Survey.

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