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Monday, March 09, 2009

Romer: Too Early to Tell if We Need a Second Stimulus

By Kathryn Buschman Vasel

FOXBusiness

A White House’s top economic adviser called for a coordinated global response to help pull the global economy out of a recession that has been crippling countries.

“"We are doing all that we can to make sure that the word 'great' never applies to the current downturn,” Christina Romer, chair of the Council of Economic Advisers, said in prepared remarks at the Brookings Institution, according to reports.

Romer said a key part to economic recover is lower interest rates, adding that "the more that countries throughout the world can move toward monetary and fiscal expansion, the better off we will all be."

Romer, a well-known expert on the Great Depression, also said it was too early to tell if another government stimulus package was needed to give a needed jolt to the economy. “We absolutely need to let this one work,” she said.

Congress passed a $787 billion economic-stimulus package last month to help prop up the faltering economy.

Also on Monday, National Economic Council Director Larry Summers called for world leaders need pump more money into the economy to increase demand and pull the world out of a recession.

In an interview with the Financial Times, Summers said, "There's no place that should be reducing its contribution to global demand right now. It is really the universal demand agenda."

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