It took three decades for the amount of speculative-grade debt to reach $1 trillion. It took about seven years to reach $2 trillion as investors sought relief from the financial repression brought on by near-zero interest rates.
Martin Feldstein, a past president of the National Bureau of Economic Research, said the Federal Reserve should start slowing the pace of its $85 billion in monthly bond buying because the risks outweigh benefits.
In 1961, Martin Feldstein faced a choice: Become a doctor -- or an economist. He had finished his bachelor’s degree in economics from Harvard College and been accepted to Harvard Medical School. He went with economics, enticed by a Fulbright scholarship to study at Oxford University in England. Once there, he found a way to combine his two areas of interest, Bloomberg Markets magazine reports in its October special issue on the 50 Most Influential people in global finance. The first paper he published was an economic analysis of Britain’s National Health Service.
President Barack Obama clearly signaled this week that Federal Reserve chairman Ben S. Bernanke will be leaving the central bank when his term ends in January and that looming departure means Bernanke will want to begin tapering asset purchases this year, said Harvard University economics professor Martin Feldstein.
Harvard University Professor Martin Feldstein, who predicted in 1998 that the euro would prove an “economic liability,” said the single currency will survive for now, even as he bets Greece quits within a year.
Harvard University economics professor Martin Feldstein said the U.S. economy may fall into a recession next year even if Congress and President Barack Obama avert the full brunt of the so-called fiscal cliff.
U.S. economic growth may not top 2 percent this year and a third round of quantitative easing by the Federal Reserve would have little effect, said Martin Feldstein, a professor of economics at Harvard University.