CERAWeek: Harvard's Rogoff: window dressing and $70 oil

Harvard economist Kenneth Rogoff isn’t a big fan of the stimulus package the U.S. Congress recently passed.
“Honestly I don’t think it’s going to do much. It’s just window dressing,” Rogoff said in an address on “Energy and the Economy” at CERAWeek. That also goes for French plans for economic stimulus.
The higher commodity prices of recent years are really “froth from the business cycle. I think we’ll see them come down as global growth slows,” Rogoff said. He thinks oil could drop into the low $70s.
“I don’t think the high oil prices are a cause of the problem. I think they’re a result of the global economy,” Rogoff said. The difference between $60 and $90 oil probably doesn’t mean a whole lot to U.S. growth, he said.
The dollar will also continue to fall because the U.S. economy will slow down more than others, Rogoff said.
“Who it falls against is something of a political football,” Rogoff said.

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