Friday, August 6, 2010

Romer has not really been acting as Chief Economic Advisor

From National Journal blog:

Christina Romer, chairwoman of Pres. Obama's Council of Economic Advisers, has decided to resign, according to a source familiar with her plans.
Romer, an economics professor at the University of California (Berkeley) before taking the key admin post, did not respond to repeated calls to her office.
"She has been frustrated," a source with insight into the WH economics team said. "She doesn't feel that she has a direct line to the president. She would be giving different advice than Larry Summers [director of the National Economic Council], who does have a direct line to the president."
"She is ostensibly the chief economic adviser, but she doesn't seem to be playing that role," the source said.
 Romer and her husband recently conducted research and found that, "tax increases are highly contractionary" and that, "tax cuts have very large and persistent positive output effects."  (American Economic Review)