John H. Makin is a resident scholar at the American Enterprise Institute (AEI) where he studies the US economy, monetary policy, financial markets, corporate taxation and banking. He also studies and writes frequently about Japanese, Chinese and European economic issues.
Makin has served as a consultant to the US Treasury Department, the Congressional Budget Office, and the International Monetary Fund. He spent twenty years on Wall Street as the chief economist, and later as a principal of Caxton Associates a trading and investment firm. Earlier, Makin taught economics at various universities including the University of Virginia. He has also been a scholar at the Bank of Japan, the Federal Reserve Bank of San Francisco, the Federal Bank of Chicago, and the National Bureau of Economic Research. A prolific writer, Makin is the author of numerous books and articles on financial, monetary, and fiscal policy. Makin also writes AEI's monthly Economic Outlook which pairs insightful research with current economic topics.
Makin received his doctorate and master’s degree in economics from University of Chicago, and bachelor’s degree in economics from Trinity College.
It is necessary to be preemptive when facing deflation. Deflation is self-reinforcing, so if you wait to offset it until prices are actually falling, you risk losing control. Central banks in the United States and around the world must end their complacency and respond preemptively to the threat by monitoring inflation rates and undertaking aggressive monetization.
The United States and Japan should make pledges to protect each other's interests in the event of conflict. This rearticulated US-Japan alliance need not threaten China, but rather serve as a reminder that actions to advance Chinese interests at the expense of US-Japan interests will not be tolerated.
Quantitative easing and fiscal stimulus are becoming less effective. The reason is the same as the reason that antibiotics, overused in an attempt to cure infections including common colds, are becoming less and less effective with more intensive use: endogeneity.
As the U.S. economy continues to sputter, American Enterprise Institute economists identify five areas that could heavily affect an American recovery in 2014: trade, the Federal Reserve, housing, taxes and the Internet.
While improving long-term growth is difficult, the best places to begin are with advances in areas such as tax reform, deregulation, and freer trade. These structural measures, along with efforts to reduce current high levels of policy uncertainty, might help boost sustainable, long-term economic growth.