Second stimulus not needed - survey

76% of respondents polled by the National Association for Business Economics say the government should cut spending over next two years.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all RSS FEEDS (close)
By Julianne Pepitone, staff reporter

Obama's money moves
200 days in, the President is going for broke. Click for analysis of where he's succeeding - and where hes not.
Bailout road trip! Big 3 drive to Washington
Obama's economic team is pushing through Congress the most expensive emergency spending package in the nation's history. And that's just the start.
How stimulus will help your state
The Obama administration says the Recovery Act created or saved 640,000 jobs through September. Here's a state-by-state breakdown.
Should the $8,000 first-time homebuyer tax credit be extended beyond Nov. 30?
  • Yes
  • No

NEW YORK ( -- An increasing number of economists agree with the government's response to the recession, saying they believe the economy is on the road to recovery, according to a survey released Monday.

The majority of respondents, or 76%, do not believe a second stimulus package is necessary, said the report from the National Association for Business Economics.

"This is almost certainly one of the fastest-moving and most controversial economic policy environments we have experienced in a generation," said NABE president Chris Varvares.

Respondents expressed "an impressive degree of confidence in monetary policy," but their views on budget policies are "more vexing," Varvares added. The semi-annual survey includes responses from a panel of 266 economists.

Fiscal policy. The number of economists reporting that fiscal policy is "about right" rose to 35%, marking the highest since March of 2008. That's up from 22% in March 2009.

But 50% of those surveyed said fiscal policy is still too stimulus focused, up from 33% in March. Three-quarters said they would like to see more restriction over the next two years, but only 28% expect that. In fact, almost 42% of economists said they expect fiscal policy to become even more stimulus oriented.

About 20% said the stimulus actually reduced growth during the past quarter.

Stimulus outlook. About half of respondents said stimulus will add between 0.5 and 1.5 percentage points to gross domestic product growth in the second half of 2009. About a third said it would add less than 0.5 percentage points. GDP is the broadest measure of the nation's economic activity.

About 58% said the stimulus will add between 0.5 and 1.5 percentage points to GDP growth from the fourth quarter of 2009 to the fourth quarter of 2010.

The first revision of the second-quarter GDP showed the economy declined at a rate of 1% -- unchanged from the government's initial estimate.

The Fed and monetary policy. Almost 70% of the economists said the Federal Reserve's current monetary policy is "about right." That's up from 63% in March and from 56% a year ago.

But results were split on the central bank's moves over the next six months. Almost half said the interest rate policy should remain on hold, while 45% said it should become more restrictive.

However, 56% of economists said the Fed would likely hold rates at current levels over the next six months, while 44% predicted an increase. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Don't give my job to Staples Hundreds of U.S. Postal Service workers protested against experimental mini post offices at Staples. Here's why some Washington, D.C. workers don't like the deal. More
Tools to make your money grow You've started saving and built a financial base. Time for a few new strategies and tools to get your money to grow even more. From real estate to IRAs, here are some tips. More
Ready to start saving? Here's how to do it right When you are just starting out or finally starting to get serious about saving, the basics will get you far. Here are more than a dozen tips that will help you lay the base for building your net worth. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.