. >> joining me now, a senior fellow at the peterson institute, and scott from george mason university let me start with you. is this the medicine that the cross-examine economy and people needed for the near term? >> well in the short run we toj dodged a bullet here. without an agreement, greece would have had to leave the euro creating a crisis in greece. >> the most accuse status of the crisis had been dealt with. underlying problems are there for the next year or two it will be longer. we haven't really solved the underlying problems. >> are we looking at a situation where, as now, greece will owe more money as it continues to make debt statements? >> i think, unfortunately in the short term one of the things that happened is the economy got worse, they have a bigger fiscal hole to dick out of. there's strict austerity in the agreement. they'll have to make severe cuts tax increases. even so there'll have to be further discussion of debt relief down the road. it's so large, it can't be dealt with realistically without debt reduction. >> they have raised taxes. unemployment soared.

is president of the peterson institute. much appreciated. ahead -- we will introduce you to the netflix of private aviation, looking to get you flying through the northeast with unlimited access for $2000 a month. we will bring you the details. ♪ pimm: all right. welcome back to the bloomberg market day. in pimm fox. at least 64 people are dead bomberspair of suicide in nigeria. it is one of the deadliest attacks yet by the islamic militant group called boko haram. the family that controls samsung -- shareholders narrowly approved a merger of two samsung affiliates. this gives more power to the family. elliott associates could challenge the merger in court. and hacking pays, if you are on the right side. two hackers who hunt for security flaws in the united airline system are each getting one million frequent flyer miles. that is enough for several first-class roundtrips to asia. the united states makes up roughly half of the worldwide market for jets. begin is looking at getting -- beacon is looking at getting a bythold in the market becomi

earlier today, pimm fox spoke to adam posen, the president of the peterson institute.y started to look at the leadership of the european central bank. adam: i think the european central bank, under mario draghi, but also under others has shown a lot of good balance in the last year. were keeping banks open in greece, but that was actually in line with their mandate and in line with good practice. they couldn't keep putting money in because all of it was going to leave. they had to show what was going they areirst, what doing is quantitative easing and trying to get credit inflation up in the area, and that will extend to greece again. secondly, they are no longer trying to directly threaten the government. again, the radicals in greece and others in germany have pretended that the ecb was helping them, the germans, but germany was trying to stay out of it. i think this was a positive move on their part as compared to a few years ago, for example, where they were seen as attacking berlusconi. i am no fan of berlusconi, but it was not good. m: talk about the issue of tru

coming up, adam posen of the peterson institute on the future direction for germany. bloomberg "surveillance." ♪ tom: one of the outcomes of the crisis in europe -- dollar strength. a new out in the last two hours. vonnie: more than a million people expected to attend a papal mass in ecuador. a crowd greeted pope francis yesterday. the first stop of his nine-day trip to south america. he will also visit bolivia and paraguay. he will skip his homeland, argentina. reddit's interim ceo is under fire appeared a petition calling for the removal of alan pao -- e llen pao drew more than 130,000 citizens. pao made headlines when she accused a gender capital firm of gender bias. 13 nascar fans hurt after a huge finish line crash at daytona. dale earnhardt jr. had just won the cook zero 401 austin dillon's car hit a fence p1 fan was hospitalized. tom: they hit the grass, bad things. vonnie: very lucky. tom: let's continue with our coverage of europe. focus is on greece. all eyes will turn to the future of europe. that always suggests a focus on germany and france. and on the pe

joining me now in washington is william cline, a senior fellow at the peterson institute for nationalnomics, and george, a senior fellow and director of the center for monetary alternatives at the cato institute. given the way the table is set right now, you get a bunch of macro economists, money guys into the room, elected officials into the room, how do you make a settlement where the politics work and the economics work? >> i wish i knew how to do that. perhaps i could run for prime minister of greece if i knew. but what i - i know what you don't do. you don't shop the odds by holding a referendum where you recommend that people vote to leave the eurozone. if what you really are looking for is some accommodation in order to stay in the eurozone. that certainly is a bad way to go about negotiating. i think that there are things that clearly could have been negotiated. there was a need to have serious discussion about austerity, and what that meant, and whether there were some more palatable forms of austerity that the greeks could more easily accept. and in return, there was plenty

jacob is a senior fellow from the peterson institute of economics and says the vote will help the bankingtem. >> first of all, the vote passed with three-quarters of parliament support - that is good news for greece. i think it makes it virtually certain that the euro group tomorrow will have a teleconference and approve this and send a signal to the european central bank that it is okay for it to increase the assistance to greek banks, which may mean that may be as soon as tomorrow, maybe only friday that the limits on government withdrawals, which is currently 60 euros a day, will be raised somewhat to maybe 150 or 200. who knows. that will be big news for the average greek. the europeans knew that when they struck the deal this weekend, because the managing director of the i.m.f. was at the negotiations in brussels and the other thing is that therefore, the fact that they struck the deal signals to me that they are prepared to give greece debt relief probably as early as 2016, provided that alexis tsipras does his part of the homework so that the i.m.f. can agree to join a new deal whi

the peterson institute for international economics said merchandise exports to cuba could reach $4.3lion annually while exports from cuba could reach $5.8 billion annually, up from zero today. so you can imagine that all kinds of cities, particularly up and down the seaboard in florida, are really itching to get involved here. let's bring in greater tampa chamber of commerce ceo in a fox business exclusive. bob, what kind of potential business angtivity are you already -- activity are you already hearing about, anticipating and hoping for? >> sure, thank you for having me. we're expecting to see a lot of growth taking place with technology. they're very hungry for communication technology that we have here in the united states. there are also opportunities for agricultural and manufacturing goods and services in cuba as they look to rebuild with a lot of pent-up demand for new be growth down there -- new growth down there. so we're expecting to see more growth as our airport, one of the top airports in the world is still taking people down to cuba as well as port tampa bay being succ

. >> earlier, i spoke to a research fellow at the peterson institute for international economics.ained what's next for greece including potential debt relief and whether other european countries will approve the bailout plan. >> i would expect there to be some defections in the german coalition but nothing close to bringing this vote in danger. i would expect a large majority in germany, but also ultimately all of the members will have votes that this will pass. >> alexis tsipras has obviously come under a huge amount of pressure in greece and amongst many of his plail political allies as well but you are suggesting he may come out as a hero from this because it is a bit of a misunderstanding of how good the deal is for greece within the country. >> i think first of all, today's comprehensive vote in the parliament in which tsipras carried the vast majority of his own party shows the dominant political position he's been in since he won that referendum. which was very good for him personally even if it was a disaster for the country economically. but basically the broader point he

at what sunday's vote could trigger with two different views: jacob kirkegaard is with the peterson instituteernational economics and mark weisbrot is co-director of the center for economic and policy research. we welcome you both. you just saw again just how divided the greek people are. jacob kirkegaard, to you first. what's better for greek's future a yes or no vote. >> in my opinion there's no doubt they should vote yes. i think we need to make clear this is not a vote about austerity or not. this is about really sending what is now an accelerating national emergency in greece where you are starting to see food shortages you're starting to see medical supplies run low. and the banking system is teetering on the brink of slaps and which has now been closed for a week. if these no yes vote, then the banking system will in my opinion slide into a complete collapse. we will face significant deposit of bailing and other things. this is really about saving the greek economy and therefore the future for the greek people. >> woodruff: mark weisbrot what should the people of greece do. >> i would

one of the things that the peterson institute research has shown is that the private sector is much larger economy today that you would've thought was the case 25 years ago, including the banking sector. vonnie: it is time for our agenda. i'm going to be sticking with china all day long. see what kind of contagion impacts we are seeing with stocks lower in germany and futures lower here. good luck to the yen, too. tom: there it is. you wonder if we get to the july 8 love that we saw in the chinese market. i look at the commodities on what we saw on thursday. we saw a little bit of a gold plus on friday afternoon, but peter orszag again oil falling again. i look at the dollar as one indication. the second derivative of weakness -- i think we have never seen it. peter: it's commodities. brendan: i'm looking at the dance of negotiations around climate change. looking towards paris in the fall. we see today that you have the searching companies meeting at the white house with john kerry, talking about $140 billion in spending. that to me feels like window dressing. peter orszag, do you have an

jacob kirk gore senior fellow at peterson institute for international economics. previously he worked with the danish ministry of defense and the united nations in iraq. he studied at columbia university received a ph.d. from john hopkins university. so we have three very prominent witnesses and people who are not only respected in education but in foreign affairs as well. so we would be very appreciative of hearing what you have to say. dr. mccormick, you may begin. >>> well, good afternoon. and thank you very much for inviting me to this very topical hearing. my name is john mccormick. i'm professor of political science at the indianapolis campus of indiana university. and i've been studying teaching, and writing about the european union and its precursors for about 25 years. in that time the last decade without question has been the most challenging and the most troubled. beginning with the rejection of the institutional treaty in 2005, moving through the global financial crisis that began in 2007, the eurozone crisis that began in 2009, which both involved aga

. >> of talk you did recently at the peterson institute? you talked about productivity and also zero total factor productivity. that reminded me of like the dark matter in the universe but can you explain what you see with productivity? >> productivity and total factor productivity are among the most important things in the economy. labor is the output for one hour of labor. other reasons why you can get more output is workers can be better educated, more capital or machinery at their disposal or combined labor better with larger markets better inventory. the last is called total factor productivity. that is the most exciting thing you can have with a fixed amount of labor and capital to get more stuff. our fed. two understand physical situation you need to know the of productivity growth to would understand why wages have stagnated since the '70s and understand productivity growth. if you want to have day faster cheaper income growth a lot of things you need but one is productivity so it is central to the economy. it is about the noisiest

in a talk that you gave recently, i believe it was at the peterson institute, was that where it was? mr. furman: yes. mr. kessler: you talked about productivity and you also talked about total factor productivity. and what that reminded me of the total factor productivity, was in some ways, like the dark matter in the universe, where it's both the cause of and the solution to all of the universe's mysteries. but can you explain a little bit what you're seeing in productivity and what total factor productivity is? mr. furman: so productivity, and especially total factor productivity, are among the most important things in the economy. labor productivity is how much output you get for one hour of labor input. and the reasons why you can get more output for a given amount of input is your workers can be better educated. your workers can have more capital machinery at their disposal. or, because you combine labor and capital better, because you have better technology, better ways of managing your inventory, what have you. that last thing is called total factor productivity. and it's the

. >> the talk you gave recently at the peterson institute. is that where it was? you talked about productivity and you also talked about total factor productivity. what that reminded me of that total factor productivity, in some ways the dark matter of the universe in where it is both the cause and solution to the mysteries. can you explain a little bit what you are seeing in productivity and what total factor productivity is? so productivity and especially total factor productivity are some of the most important things in the economy. it has to do with what you get for one hour of labor. the reason you can get more output for a given amount of input is because your workers may be more educated or have more capital or machinery at their disposal or because it combines labor and capital together. better ways of managing your inventory, what have you. that last that last thing is called total factor productivity. it's the most exciting thing that can happen in the con ami because it is a fixed amount of labor and fix amount of capital and you're getting more and mor

. >> i'm angel from the peterson institute. for those where qe has an impact through asset prices wouldn't it follow at a time of tightening that the fed should sell assets? >> as i recall don, when we adopted a balance sheet expansion regime when we were confronted with the zero lower balance parenthetically not obvious that the central bank thinks that the zero lower bound is the problem, my recollection is that our original exit strategy is that we would shrink our balance sheet back to something like normal. that is, after all, we cut rates to zero first and increase the size of our balance sheet to get get -- that is certainly not the exit present pals that our former colleagues have adopted now. i'm not sure i understand why. a sentic, of which independent now the and the signaling could work in the opposite regard. we're selling assets and we sure hope you doesn't follow us. a cynic would have that as a supposition as to why sort of normalizing the balance sheet first is no longer considered prudent. i don't really know

jacob, and is a senior fellow at the peterson institute for international economics. previously, he worked with the danish ministry of defense, and the united nations in iraq. he studied at columbia university received a ph.d. from john hopkins university. so we have three very prominent witnesses and people who are not only respected in the education but in the foreign affairs, as well. so we would be very appreciative of hearing what you have to say. dr. mccormick, you may begin. >> well, good afternoon. and thank you very much for inviting me to this very topical hearing. my name is john mccormick, i'm a professor of political science at the indianapolis campus of indiana university. and i've been studying teaching and writing about the european union and its precursors for about 25 years. in that time, the last decade without question has been the most challenging and the most troubled. beginning with the rejection of the constitutional treaty in 2005 moving through the global financial crisis that began in 2007. the eurozone crisis that began in 2009. the backgro

. >> in a talk he gave recently at the peterson institute, was that what it was? you talked about product dignity and you also talked about total factor product dignity. but that reminded me of the total factor product dignity is in some ways like the dark matter in the universe where it's both the solution of all the universities in this area is. can you explain a little bit what you are seeing in product dignity -- productivity. >> productivity and special factor product dignity are among the most things in the economy. labor productivity is how much output you get her one hour of labor interests. the reasons why you can get the output is your workers can be better educated. your workers can have more capital machinery at their disposal. or because you combine labor and capital better. at larger scales of market better ways of managing and in tory what have you. the last day this product candidate and the most exciting thing you can have in the economy because it says for a fixed amount of labor or capital you get more and more stuff out of it. if you want to un