Oil, Deflation and the Central Banks: David Goldman

The transcript discusses the aftermath of CDO blowups and their impact on the US economy, particularly in relation to employment and oil trade. It critiques the effectiveness of monetary policy post-crisis, questioning the reliance on central banks like the Federal Reserve. The discussion shifts to fiscal policy, highlighting missed opportunities for deficit reduction and infrastructure investment, and speculates on future fiscal shifts to alleviate pressure on monetary policy.

What was the role of Goldman Sachs in the economic issues discussed?

• They led fiscal policy reforms.

• They were a major oil producer.

• They were central to monetary policy changes.

• They were involved in CDO blowups.

How might falling oil prices affect U.S. capital expenditure?

• It could increase by a fifth.

• It could double.

• It could remain stable.

• It could fall by a fifth.

What is a major concern about post-crisis monetary policy?

• It has been too effective.

• It relies too heavily on the Federal Reserve.

• It has not been implemented.

• It focuses too much on fiscal policy.

What fiscal policy opportunity was missed in recent years?

• Immediate tax cuts.

• Backdated deferred deficit reduction with upfront investments.

• Increased military spending.

• Reduction in healthcare funding.

What shift in fiscal policy is anticipated?

• Towards reduced infrastructure spending.

• Towards adverse fiscal consolidation.

• Towards more helpful fiscal consolidation.

• Towards increased monetary policy reliance.