The IMF, like other official forecasters, usually is upbeat in describing the prospects for the world's largest economy to avoid undermining confidence. The financial blow in developing countries in Latin America and Asia has been even greater. Mr. Rogoff compared the attacks to a huge natural disaster like the Kobe earthquake that hit Japan in 1995, leveling parts of a major port city. Mr. Rogoff held out hope for a rapid recovery in the United States and the rest of the world next year. The quick-fire moves by the Federal Reserve and other major central banks after the attacks to cut interest rates and pump money into wounded financial systems averted an even worse financial catastrophe, he said.
Economists say such oil-price declines are much like tax cuts that stimulate the economy.
But Congress should be cautious in approving any further tax cuts and spending boosts to stimulate the economy, given how much already has been done. Frantic, ill-focused actions to stimulate the economy risk being counterproductive. Mr. Greenspan also suggested that Congress use any stimulus package to help remedy the technology and investment spending bust that has held back the economy for a year, for example by enacting investment tax incentives like accelerated depreciation for investments and write-offs for spending on software. 2001 - iSyndicate, inc.