[Economic Report of the President (2010)]
[Administration of Barack H. Obama]
[Online through the Government Printing Office, www.gpo.gov]

 
APPENDIX A


REPORT TO THE PRESIDENT
ON THE ACTIVITIES OF THE
COUNCIL OF ECONOMIC
ADVISERS DURING 2009





LETTER OF TRANSMITTAL


Council of Economic Advisers
Washington, D.C., December 31, 2009

Mr. President:

The Council of Economic Advisers submits this report on its
activities during calendar year 2009 in accordance with the
requirements of the Congress, as set forth in section 10(d) of the
Employment Act of 1946 as amended by the Full Employment and Balanced
Growth Act of 1978.


Sincerely,


Christina D. Romer, Chair
Austan Goolsbee, Member
Cecilia Elena Rouse, Member







Council Members and Their Dates of Service

Name               Position       Oath of office date    Separation date
Edwin G. Nourse    Chairman          August 9, 1946      November 1, 1949
Leon H. Keyserling Vice Chairman     August 9, 1946
Acting Chairman   November 2, 1949
Chairman          May 10, 1950        January 20, 1953
John D. Clark      Member            August 9, 1946
Vice Chairman     May 10, 1950        February 11, 1953
Roy Blough         Member            June 29, 1950       August 20, 1952
Robert C. Turner   Member            September 8, 1952   January 20, 1953
Arthur F. Burns    Chairman          March 19, 1953      December 1, 1956
Neil H. Jacoby     Member            September 15, 1953  February 9, 1955
Walter W. Stewart  Member            December 2, 1953    April 29, 1955
Raymond J. Saulnier Member           April 4, 1955
Chairman          December 3, 1956    January 20, 1961
Joseph S. Davis    Member            May 2, 1955         October 31, 1958
Paul W. McCracken  Member            December 3, 1956    January 31, 1959
Karl Brandt        Member            November 1, 1958    January 20, 1961
Henry C. Wallich   Member            May 7, 1959         January 20, 1961
Walter W. Heller   Chairman          January 29, 1961    November 15, 1964
James Tobin        Member            January 29, 1961    July 31, 1962
Kermit Gordon      Member            January 29, 1961    December 27, 1962
Gardner Ackley     Member            August 3, 1962
Chairman          November 16, 1964   February 15, 1968
John P. Lewis      Member            May 17, 1963        August 31, 1964
Otto Eckstein      Member            September 2, 1964   February 1, 1966
Arthur M. Okun     Member            November 16, 1964
Chairman          February 15, 1968   January 20, 1969
James S. Duesenberry Member          February 2, 1966    June 30, 1968
Merton J. Peck     Member            February 15, 1968   January 20, 1969
Warren L. Smith    Member            July 1, 1968        January 20, 1969
Paul W. McCracken  Chairman          February 4, 1969    December 31, 1971
Hendrik S. Houthakker Member         February 4, 1969    July 15, 1971
Herbert Stein      Member            February 4, 1969
Chairman          January 1, 1972     August 31, 1974
Ezra Solomon       Member            September 9, 1971   March 26, 1973
Marina v.N. Whitman Member           March 13, 1972      August 15, 1973
Gary L. Seevers    Member            July 23, 1973       April 15, 1975
William J. Fellner Member            October 31, 1973    February 25, 1975
Alan Greenspan     Chairman          September 4, 1974   January 20, 1977
Paul W. MacAvoy    Member            June 13, 1975       November 15, 1976
Burton G. Malkiel  Member            July 22, 1975       January 20, 1977
Charles L. Schultze Chairman         January 22, 1977    January 20, 1981
William D. Nordhaus Member           March 18, 1977      February 4, 1979
Lyle E. Gramley     Member           March 18, 1977      May 27, 1980


Council Members and Their Dates of Service

Name              Position       Oath of office date   Separation date
George C. Eads    Member         June 6, 1979          January 20, 1981
Stephen M. Goldfeld Member       August 20, 1980       January 20, 1981
Murray L. Weidenbaum Chairman    February 27, 1981     August 25, 1982
William A. Niskanen  Member      June 12, 1981         March 30, 1985
Jerry L. Jordan      Member      July 14, 1981         July 31, 1982
Martin Feldstein     Chairman    October 14, 1982      July 10, 1984
William Poole        Member      December 10, 1982     January 20, 1985
Beryl W. Sprinkel    Chairman    April 18, 1985        January 20, 1989
Thomas Gale Moore    Member      July 1, 1985          May 1, 1989
Michael L. Mussa     Member      August 18, 1986       September 19, 1988
Michael J. Boskin    Chairman    February 2, 1989      January 12, 1993
John B. Taylor       Member      June 9, 1989          August 2, 1991
Richard L. Schmalensee Member    October 3, 1989       June 21, 1991
David F. Bradford    Member      November 13, 1991     January 20, 1993
Paul Wonnacott       Member      November 13, 1991     January 20, 1993
Laura D'Andrea Tyson Chair       February 5, 1993      April 22, 1995
Alan S. Blinder      Member      July 27, 1993         June 26, 1994
Joseph E. Stiglitz   Member      July 27, 1993
Chairman    June 28, 1995         February 10, 1997
Martin N. Baily      Member      June 30, 1995         August 30, 1996
Alicia H. Munnell    Member      January 29, 1996      August 1, 1997
Janet L. Yellen      Chair       February 18, 1997     August 3, 1999
Jeffrey A. Frankel   Member      April 23, 1997        March 2, 1999
Rebecca M. Blank     Member      October 22, 1998      July 9, 1999
Martin N. Baily      Chairman    August 12, 1999       January 19, 2001
Robert Z. Lawrence   Member      August 12, 1999       January 12, 2001
Kathryn L. Shaw      Member      May 31, 2000          January 19, 2001
R. Glenn Hubbard     Chairman    May 11, 2001          February 28, 2003
Mark B. McClellan    Member      July 25, 2001         November 13, 2002
Randall S. Kroszner  Member      November 30, 2001     July 1, 2003
N. Gregory Mankiw    Chairman    May 29, 2003          February 18, 2005
Kristin J. Forbes    Member      November 21, 2003     June 3, 2005
Harvey S. Rosen      Member      November 21, 2003
Chairman    February 23, 2005     June 10, 2005
Ben S. Bernanke      Chairman    June 21, 2005         January 31, 2006
Katherine Baicker    Member      November 18, 2005     July 11, 2007
Matthew J. Slaughter Member      November 18, 2005     March 1, 2007
Edward P. Lazear     Chairman    February 27, 2006     January 20, 2009
Donald B. Marron     Member      July 17, 2008         January 20, 2009
Christina D. Romer   Chair       January 29, 2009
Austan Goolsbee      Member      March 11, 2009
Cecilia E. Rouse     Member      March 11, 2009




Report to the President
on the Activities of the
Council of Economic Advisers
During 2009

The Council of Economic Advisers was established by the Employment Act
of 1946 to provide the President with objective economic analysis
and advice on the development and implementation of a wide range of
domestic and international economic policy issues.



The Chair of the Council

Christina D. Romer was nominated as Chair of the Council by the
President on January 20, 2009. She was confirmed by the Senate on
January 28, and took the oath of office on January 29. Dr. Romer is
on a leave of absence from the University of California, Berkeley,
where she is the Class of 1957-Garff B. Wilson Professor of Economics.

The Chair is a member of the President's Cabinet and is responsible
for communicating the Council's views on economic matters directly
to the President through personal discussions and written reports.
Dr. Romer represents the Council at the daily Presidential economics
briefing, daily White House senior staff meetings, budget meetings,
Cabinet meetings, a variety of inter-agency meetings, and other
formal and informal meetings with the President, the Vice President,
and other senior government officials. She also meets frequently
with members of Congress in both formal hearings and informal
meetings to discuss economic issues and Administration priorities.
She travels within the United States and overseas to present the
Administration's views on the economy. Dr. Romer is the Council's
chief public spokesperson. She directs the work of the Council
and exercises ultimate responsibility for the work of the
professional staff.

Dr. Romer succeeded Edward P. Lazear, whose tenure ended with
the inauguration of the new President. Dr. Lazear returned to
Stanford University, where he is the Jack Steele Parker Professor
of Human Resources Management and Economics in the Graduate School
of Business and the Morris Arnold Cox Senior Fellow at the Hoover
Institution.

The Members of the Council

The other Members of the Council are Austan Goolsbee and Cecilia
Rouse. They were nominated by the President on January 20, 2009,
confirmed by the Senate on March 10, and took their oaths of office
on March 11. Dr.Goolsbee also serves as the Staff Director and Chief
Economist of the President's Economic Recovery Advisory Board.
Dr. Goolsbee is on a leave of absence from the University of Chicago,
where he is the Robert P. Gwinn Professor of Economics in the Booth
School of Business. Dr. Rouse is on a leave of absence from Princeton
University, where she is the Theodore A. Wells '29 Professor of
Economics and Public Affairs. The Members represent the Council at
a wide variety of meetings and frequently attend meetings with the
President and the Vice President.
The Chair and the Members work as a team on most economic policy
issues. The Chair works on the whole range of issues under the
Council's purview, with a particular focus on macroeconomics and
health care. Dr. Goolsbee focuses especially on issues related to
housing, financial markets, and tax policy. Dr. Rouse focuses
especially on issues related to labor markets, education, and
international trade.
The term of Donald B. Marron as a Member of the Council ended with
the inauguration of the new President. He is currently president of
Marron Economics, LLC.


Areas of Activity

Macroeconomic Policies

A central function of the Council is to advise the President on all
major macroeconomic issues and developments. The Council is actively
involved in all aspects of macroeconomic policy. In 2009, the central
macroeconomic issues included monitoring the financial and economic
crisis; formulating the policy response, including the American
Recovery and Reinvestment Act of 2009, the Financial Stability Plan,
and additional measures targeted to spur job creation and deal with
problems in specific sectors; evaluating the effects of the policies
and the economy's response; health insurance reform; and setting
priorities for the budget. In this process, the Council works closely
with the Department of the Treasury, the Office of Management and
Budget, the National Economic Council, White House senior staff, and
other agencies and officials.

The Council prepares for the President, the Vice President, and the
White House senior staff a daily economic briefing memo analyzing
current economic developments, and almost-daily memos on key economic
data releases. The Chair also makes more in-depth presentations on
the state of the economy to these officials and to the Cabinet.
The Council, the Department of Treasury, and the Office of Management
and Budget--the Administration's economic ``troika''--are responsible
for producing the economic forecasts that underlie the Administration's
budget proposals. The Council initiates the forecasting process twice
each year, consulting with a wide variety of outside sources, including
leading private sector forecasters and other government agencies.
The Council issued a series of reports in 2009. Among those most
directly related to macroeconomic policy were a report issued in May
on estimation methodology for the jobs impact of specific programs of
the Recovery Act; a report in June on the economic effects of
comprehensive health insurance reform; a report in September on the
macroeconomic effects of the Recovery Act; and three shorter reports
accompanying that report focusing on the effects of state fiscal
relief, the effects of the ``Cash for Clunkers'' program, and the
cross-country experience with fiscal policy in the crisis.

The Council continued its efforts to improve the public's
understanding of economic developments and of the Administration's
economic policies through briefings with the economic and financial
press, discussions with outside economists, and presentations to
outside organizations. The Chair and Members also regularly met
to exchange views on the macroeconomy with the Chairman and Members
of the Board of Governors of the Federal Reserve System.

Microeconomic Policies

Throughout the year, the Council was an active participant in the
analysis and consideration of a broad range of microeconomic policy
issues. The Council was actively engaged in policy discussions on
health insurance reform, financial regulatory reform, clean energy,
the environment, education, and numerous labor market issues. As
with macroeconomic policy,the Council works closely with other
economic agencies, White House senior staff, and other agencies on
these issues. Among the specific microeconomic issues that received
particular attention in 2009 were small business lending;
foreclosure mitigation and prevention; unemployment insurance; the
condition and prospects of the American automobile industry; the
role of cost-benefit analysis in regulatory policy; estimating
the social benefits of reduced carbon emissions; reform of K-12
education; student financial aid; community colleges; potential
developments in the U.S. labor market over the next five to ten
years; and key indicators of family well-being in the recession and
accompanying policy responses.

Many of the reports issued by the Council in 2009 were primarily
concerned with microeconomic issues. In addition to its major health
care report in June, the Council issued three other reports on health
insurance reform over the course of the year--one on its impact on
small businesses and their employees in July, one on its impact on
state and local governments in September, and an update of the June
report in December. The Council also issued an extensive report on
the ``jobs of tomorrow'' in July and a report on simplifying student
aid in September.


International Economic Policies

The Council was involved in a range of international trade and finance
issues, with a particular emphasis on the consequences of the
international financial crisis and the related global economic
slowdown. The Council was an active participant in discussions at
global and bilateral levels. Council Members and staff regularly met
with economists, policy officials, and government officials of other
countries to discuss issues relating to the global economy and
participated in the first Strategic and Economic Dialogue with China
in July 2009.

The Council was particularly active in examining policies that could
help speed the global economy out of the current crisis. It carefully
tracked developments in the global economy and considered the
potential medium-run impacts of the current crisis. It was also an
active participant in the Presidential Study Directive examining
the development policies of the United States Government, providing
analysis and support to the effort to review the interactions between
the United States and countries in the developing world.

On the international trade front, the Council was an active
participant in the trade policy process, occupying a position on the
Trade Policy Staff Committee and the Trade Policy Review Group. The
Council provided analysis and recommendations on a range of
trade-related issues involving the enforcement of existing trade
agreements, reviews of current U.S. trade policies, and consideration
of future policies. The Council was also an active participant on the
Trade Promotion Coordinating Committee, helping to examine the ways in
which exports may support economic growth in the years to come. In the
area of investment and security, the Council participated on the
Committee on Foreign Investment in the United States (CFIUS),
discussing individual cases before CFIUS.

The Council is a leading participant in the Organisation for Economic
Co-operation and Development (OECD), an important forum for economic
cooperation among high-income industrial economies. Dr. Romer is chair
of the OECD's Economic Policy Committee, and Council staff participate
actively in working-party meetings on macroeconomic policy and
coordination.


Public Information

The Council's annual Economic Report of the President is an
important vehicle for presenting the Administration's domestic and
international economic policies. It is available for purchase through
the Government Printing Office, and is viewable on-line at
www.gpoaccess.gov/eop.

The Council prepared numerous reports in 2009, and the Chair and
Members gave numerous public speeches and testified to Congress.
The reports, texts of speeches, and written statements accompanying
testimony are available at the Council's website, www.whitehouse.gov/cea.

Finally, the Council publishes the monthly Economic Indicators, which
is available on-line at www.gpoaccess.gov/indicators.

The Staff of the Council of Economic Advisers

The staff of the Council consists of the senior staff, senior
economists, staff economists, research assistants, analysts, and
the administrative and support staff. The staff at the end of 2009
were:


Senior Staff

Senior staff play key managerial and analytical roles at the
Council. They direct operations, perform central Council functions,
and represent the Council in meetings with other agencies and White
House offices.

Nan M. Gibson ................. Chief of Staff
Michael B. Greenstone ......... Chief Economist
Steven N. Braun ............... Director of Macroeconomic Forecasting
Adrienne Pilot ................ Director of Statistical Office

Senior Economists

Senior economists are Ph.D. economists on leave from academic
institutions, government agencies, or private research institutions.
They participate actively in the policy process, represent the
Council in interagency meetings, and have primary responsibility
for the economic analysis and reports prepared by the Council. Each
senior economist is typically a primary author of one of the chapters
in this Report.


Christopher D. Carroll .......... Macroeconomics
Mark G. Duggan .................. Health
W. Adam Looney .................. Public Finance, Tax Policy
Andrew Metrick .................. Finance
Jesse M. Rothstein .............. Labor, Education, Welfare
Jay C. Shambaugh ................ International Macroeconomics and Trade
Ann Wolverton ................... Energy, Environment, Natural Resources

Staff Economists

Staff economists are typically graduate students on leave from their
Ph.D. training in economics. They conduct advanced statistical
analysis, contribute to reports, and generally support the research
and analysis mission of the Council.

Sharon E. Boyd ................. Health
Gabriel Chodorow-Reich ......... International Macroeconomics and Trade
Laura J. Feiveson .............. Macroeconomics, Finance
Joshua K. Goldman .............. Energy, Environment, Infrastructure
Sarena F. Goodman .............. Education, Labor, Public Finance
Joshua K. Hausman .............. Macroeconomics
Zachary D. Liscow .............. Public Finance, Labor, Environment
William G. Woolston ............ Health, Education

Research Assistants

Research assistants are typically college graduates with
significant coursework in economics. They conduct statistical analysis
and data collection, and generally support the research and analysis
mission of the Council. Both staff economists and research assistants
contribute to this Report and play a crucial role in ensuring the
accuracy of all Council documents.

Peter N. Ganong ................. Labor, Public Finance, Environment
Clare M. Hove ................... Macroeconomics
Michael P. Shapiro .............. Health, International Economics

Statistical Office

The Statistical Office gathers, administers, and produces
statistical information for the Council. Duties include preparing
the statistical appendix to the Economic Report of the President
and the monthly publication Economic Indicators. The staff also
creates background materials for economic analysis and verifies
statistical content in Presidential memoranda. The Office serves as
the Council's liaison to the statistical community.

Brian A. Amorosi ................. Program Analyst
Dagmara A. Mocala ................ Program Analyst

Administrative Office

The Administrative Office provides general support for the Council's
activities. This includes financial management, ethics, human
resource management, travel, operations of facilities, security,
information technology, and telecommunications management support.

Rosemary M. Rogers ............... Administrative Officer
Archana A. Snyder ................ Financial Officer
Doris T. Searles ................. Information Management Specialist

Office of the Chair

Julie B. Siegel .................. Special Assistant to the Chair
Lisa D. Branch ................... Executive Assistant to the Members
and Assistant to the Chief Economist

Staff Support

Sharon K. Thomas ................. Administrative Support Assistant

Other Staff

Brenda Szittya and Martha Gottron provided editorial assistance in
the preparation of the 2010 Economic Report of the President.

C. Bennett Blau and Gabrielle A. Elul served as staff assistants.
Mr. Blau also served as editor of the Morning Economic Bulletin.

Student interns provide invaluable help with research projects,
day-to-day operations, and fact-checking. Interns during the year were:
Michael D. Arena; Jana Curry; Samantha G. Ellner; Brett B. Flagg;
Karen R. Li; Devin K. Mattson; Allison L. Moore; Seth H. Werfel;
Carl C. Wheeler; Kie C. Riedel; Rebecca A. Wilson; Yuelan L. Wu; and
Allen Yang.


Departures

Jane E. Ihrig left her position as Chief Economist of the Council
in January to return to the Federal Reserve Board. Pierce E. Scranton
left his position as Chief of Staff in January. He was succeeded by
Karen Anderson, who left the Council in November for maternity leave.

The senior economists who resigned during the year (with their
institutions after leaving the Council in parentheses) were:
Jean M. Abraham (University of Minnesota); Scott J. Adams
(University of Wisconsin); Benjamin N. Dennis (Department of the Treasury);
Erik W. Durbin (Sullivan and Cromwell, LLP); Wendy M. Edelberg
(Financial Crisis Inquiry Commission); Elizabeth A. Kopits
(Environmental Protection Agency); Michael S. Piwowar (Senate Banking
Committee); William M. Powers (International Trade Commission); and
Robert P. Rebelein (Vassar College).

The staff economists who resigned during 2009 were
Kristopher J. Dawsey, Elizabeth Schultz, and Brian Waters. Those who
served as research assistants at the Council and resigned during 2009
were Michael Love and Aditi P. Sen.

There were three retirements at the Council in 2009: Alice Williams,
Sandy Daigle and Mary Jones. Ms. Williams devoted 39 years and
Ms. Daigle 23 years to the Council. Their untiring commitment,
dedication, and loyalty in serving the Council, the Chairs, and the
people of the United States over the years was extraordinary and will
be greatly missed. Ms. Jones's 23 years of dedication to the senior
economists and Council Members was a testament to her commitment to
the Council and was greatly appreciated.