As part of the unprecedented accountability and transparency provisions included in the American Recovery and Reinvestment Act of 2009 (ARRA), the Council of Economic Advisers (CEA) was charged with providing to Congress quarterly reports on the effects of the Recovery Act on overall economic activity, and on employment in particular. Today we released our third report (pdf), with an assessment of the effects of the Act through the first quarter of 2010.
The main macroeconomic findings include:
A special section of the report focuses specifically on the impact of the tax relief and income support provisions of the Recovery Act:
Identifying the impact of policy actions is inherently difficult, and the estimates must be understood to be subject to large margins of error. For this reason the CEA has approached its task from a wide range of perspectives, all of which point to a key role for the ARRA in helping the economy recover from the worst recession since the Great Depression. The CEA will continue to monitor the effects of this important policy initiative over the coming months and years.
Christina Romer is the Chair of the Council of Economic Advisers