August 31, 2009 - 3:02am
In the survey that polled about 266 members of the National Association for Business Economics (NABE) experts expressed their opinion on the economic policies practiced by the US administration. They said that there is no need in a second fiscal stimulus package, instead the government should cut spending over the next two years.
Major part of the economists expressed their concern about the prospects of the government budget. Besides, they doubted the efficiency of the health care reform proposed by Obama’s cabinet.
NABE economists acknowledged the achievements in the US economy due to the stimulus package, yet it was only 35% of them who viewed fiscal policy as being "about right". About 50% of the polled said that the fiscal policy is too stimulative.
"Fully 76 percent do not believe a second stimulus package is needed. Three-quarters responded that they would like to see fiscal policy become more restrictive over the next two years, but only 28 percent expect that it will be," the NABE said.
"In fact, the largest share, nearly 42 percent, expects fiscal policy to become even more stimulative than it is now."
Nearly 70 percent of economists believed that monetary policy was "about right". About 56 percent of respondents expected the Federal Reserve to keep interest rates unchanged over the next six months, while 44 percent saw an increase.
"Half of the economists do not believe quantitative easing actions of the Fed will be inflationary over the next couple of years, while 41 percent think they will," the NABE said.
Major part of the economists expressed their concern about the prospects of the government budget. Besides, they doubted the efficiency of the health care reform proposed by Obama’s cabinet.
NABE economists acknowledged the achievements in the US economy due to the stimulus package, yet it was only 35% of them who viewed fiscal policy as being "about right". About 50% of the polled said that the fiscal policy is too stimulative.
"Fully 76 percent do not believe a second stimulus package is needed. Three-quarters responded that they would like to see fiscal policy become more restrictive over the next two years, but only 28 percent expect that it will be," the NABE said.
"In fact, the largest share, nearly 42 percent, expects fiscal policy to become even more stimulative than it is now."
Nearly 70 percent of economists believed that monetary policy was "about right". About 56 percent of respondents expected the Federal Reserve to keep interest rates unchanged over the next six months, while 44 percent saw an increase.
"Half of the economists do not believe quantitative easing actions of the Fed will be inflationary over the next couple of years, while 41 percent think they will," the NABE said.