Edited by Dr. Ronald I. Miller and Dr. Elaine Buckberg. This
report presents a summary of current thinking by academic
economists and does not necessarily represent the views of NERA or
any NERA economist.
Since we released our note on economists' reactions to the
Paulson Plan on 26 September, events have moved quickly. The
initial three-page proposal grew to a 110-page bill, the Emergency
Economic Stabilization Act of 2008, and was rejected by the House
of Representatives. The Senate then grafted the House bill, largely
as-is, onto a popular tax bill, along with provisions concerning
renewable energy, health care, and other unrelated matters. This
bill, now weighing in at 451 pages in draft form, was passed by the
Senate and the House and was signed into law by President George W.
Bush on 3 October. This note updates our previous advisory with a
description of what is new in the final version of the Emergency
Economic Stabilization Act of 2008, and a discussion of
