1. Who is Larry Summers? What is his background? What is your overall impression of the level of his knowledge of the economy?

2. The interview took place at the Davos conference on the World economy. What is this? Give a brief description of its history.

The Current State of the US Economy.

3. Rose and Summers spend a few minutes discussing GDP growth in the 4th quarter of 2009. What was this growth? Is Summers satisfied with this level of economic expansion? Why or why not?

4. Summers describes the usual progression of events in the labor market at the end of a recession: first there is GDP growth, then an increase in hours worked, then an increase in employment, and finally a decrease in unemployment. Where does the US labor market currently fall in this sequence?

5. Rose mentions something called "the new normal." What is this? What is Summers' view of the new normal? According to Summers what are the fundamental strengths of the US economy? Have they changed?

6. According to Summers the performance of the US economy over the past 10 years has been dismal. What facts does he site here to make his case?

7. According to Summers what does the Obama Administration plan to do about this poor performance? What legacy does Obama want to leave behind?

Financial Regulation

8. Who is Paul Volker? What is the Volker Rule?

9. Summers gives a dramatic description of the financial crises over the past generation. According to him there was a financial crisis about every 3 years. What were some of these?

10. According to Summers what new financial regulations are needed? If implemented how would they change the banking industry? What change in attitude would Summers like to see in the banking industry itself?

11. According to Summers what role has Obama played in the current financial/economic crisis?

12. What does it mean that some financial institutions are "too big to fail." How does Summers propose to deal with this?

Globalization

13. According to Summers what is the most important event over the past 25 years in the global economy? Does he see the success of China and the other emerging economies as a threat to the US? Why or why not?

14. What is the G20 and what role does Summers think the US should play there?

15. What does Summers see as the priorities for the U.S. over the short-run? The long-run? Does he think these are in conflict?

16. What is the "essential truth" that Summers refers to at the end of the interview? Do you agree or disagree with his perspective on this? Explain.