Peterson Foundation Convenes Fiscal and Economic Experts to Share Views on High Inflation, Interest Rate Hikes, Rising National Debt and How to Avoid a Recession

Sep 12, 2022

11 New Essays Provide Insights and Solutions for Overcoming Today’s Economic Challenges, Creating a Sustainable Budget and Stronger Future

NEW YORK — The nonpartisan Peter G. Peterson Foundation released today a collection of 11 new policy papers from leading experts as America faces a complex set of fiscal and macroeconomic challenges, including high inflation, interest rate hikes, growing interest costs fueling our unsustainable national debt, and fears of a recession. With diverse views from across the political spectrum and deep policy expertise, the authors provide analysis and insight on how lawmakers can create a sustainable federal budget, strengthen existing programs, ensure greater resources to address national priorities — and combine the best mix of fiscal, economic and monetary policy to stabilize our economy and avoid a recession.

The essays assess current issues including: the impacts of and outlook for inflation and interest rates; concerns about an economic recession; the unsustainable national debt and growing interest costs; the interplay between fiscal and monetary policy; shortfalls in the social safety net; and the role that labor market productivity plays in our economy.

“This group of distinguished experts has put forward a range of valuable insights and perspectives to help decipher the complex challenges we face and find the best way forward,” said Michael A. Peterson, CEO of the Peterson Foundation. “These 11 essays offer a deep playbook of options, ideas and advice for policymakers working to reduce inflation, avoid a recession and put us on a more stable fiscal path for the future.”

The following is a listing of the participants and essays, which are fully available here.

  • “Responsible Fiscal Policy in a Low Interest Rate World” by David Beckworth, Senior Research Fellow at the Mercatus Center, George Mason University
  • "Five Fundamental Changes for U.S. Fiscal Policy” by William C. Dudley, Senior Advisor to the Griswold Center for Economic Policy Studies, Princeton University
  • “High Inflation and Fiscal Policy” by Karen Dynan, Professor of the Practice in the Harvard University Department of Economics and at the Harvard Kennedy School
  • “Recession Remedies in the Face of High Inflation” by Wendy Edelberg, Director of The Hamilton Project and a Senior Fellow in Economic Studies at the Brookings Institution
  • “Inflation, Interest Rates, and the Budget: New Challenges, Old Solutions” by William Gale, Arjay and Frances Fearing Miller Chair in Federal Economic Policy, and Swati Joshi, Senior Research Assistant, at the Brookings Institution
  • “Inflation Fighting and Ensuring Fiscal Health Starts Now” by Dana M. Peterson, Chief Economist, and Lori Esposito Murray, President of the Committee for Economic Development, at The Conference Board
  • “Help Wanted: A Fiscal Policy for the Future” by Nela Richardson, Chief Economist at ADP, Inc.
  • “Rising Interest Rates Threaten Washington’s Solvency” by Brian Riedl, Senior Fellow at the Manhattan Institute
  • “Mad Money: How to Fight the Inflation Tax” by Sita Slavov, Professor of Public Policy at the Schar School of Policy and Government, George Mason University
  • “Fiscal and Monetary Policy Work Best Together” by Marc Sumerlin, Managing Partner at Evenflow Macro
  • “A Meteor Shower: Inflation in a Post-Pandemic World” by Diane Swonk, Chief Economist at KPMG

Last year, the Peterson Foundation convened a group of experts to help answer the question of the moment: Where Do We Go from Here?, which outlined the connection between national preparedness, economic strength, and a sustainable fiscal outlook.

# # #

Bipartisan Policymaking under Divided Government

We asked experts with diverse views from across the political spectrum to share their perspectives.

National Debt Clock

See the latest numbers and learn more about the causes of our high and rising debt.