The Paulson Proposal: An Update on Economists' Views

Fri Oct 10 16:24:38 EDT 2008

Events have moved quickly since NERA's Securities and Finance Practice released a brief presenting economists' reactions to the Paulson Plan on 26 September. The initial three-page proposal grew to a 110-page bill -- the Emergency Economic Stabilization Act of 2008 -- and was rejected by the House. The Senate then grafted the House bill, largely as is, onto a popular tax bill, along with provisions concerning renewable energy, health care, and other unrelated matters. This bill, now weighing in at 451 pages in draft form, was passed by the Senate and the House and was signed into law by President Bush on 3 October.

This updated NERA brief provides a description of what is new in the final version of the bill and a discussion of some proposals by economists for additional measures that might be taken beyond the present Act.

For further discussion on the Paulson Proposal, please visit the links located in the right-hand column of this page.