What is the Council of Economic Advisers?

The council of economic advisers refers to three members of distinguished economists that provides the president with advices on economic policies.

Back to: GOVERNMENT, THE LEGAL SYSTEM, &ADMINISTRATIVE LAW

What does the Council of Economic Advisers Do?

Established under the Employment Act of 1946, the US Council of Economic Advisers aims to examine the total and different pain points of the domestic economy, and make recommendations to the President on how to further develop the economy and ensure growth. They also provide evaluations of economic policies and plans, and prepare the president for a year. These three members are usually appointed by the president and instructed by the Congress on the ways to assist the president. These ways are:

• Prepare economic reports which are usually published in February. This way, the President will have an economic backing to his proposed annual budget. They are also required to point out the events that occurred in the economy for the previous year, as well as explain the possible causes of such events. The CEA can also forecast economic growth for the upcoming year.
• Review Economic Indicators: They're required to provide the Joint Economic Committee of Congress with a summary of up to 11 vital statistical areas on a monthly basis. They're required to provide information on the GDP of the nation, the income and employment reports and production and commercial activities in the country. They're also expected to report financial statistics such as the size of money supplied and the total national credits. The CEA also presents records and reports on financial security markets, federal funds and how well the nation is performing according to international economic standards. Each of these areas are related to each other, and it is the job of the CEA to inform the President on the possibility of such relationships affecting the existing policy.
• Check and balances on federal financial agencies. The CEA also provides recommendations to the President if his policies would negatively impact the economy.
• The CEA is required to develop specific policies on a regular basis. According to law, such policies should focus on promoting competitive free enterprises.
• The CEA provides economic research reports which applies to different sectors. They also provide advice on new ways of measuring the national GDP.

Ways the CEA Affects the US Economy

The CEA provides a substantial orientation to the President of the country while generating economic policies and working out the yearly budget.