Editor’s note: This is the first of a two-part post on monetary policy. Part two can now be read here.
On Thursday, Philadelphia Federal Reserve President Charles Plosser gave a speech called “A Limited Central Bank” that I highly recommend. The underlying theme of Plosser’s speech was that central banks should have a limited role but that they are being called on to do ever more. Below I want to expand on this theme in view of comments from Larry Summers on central banks and secular stagnation.
I had this post teed up to write on Friday before I had even heard about Larry Summers’ comments on secular stagnation and monetary policy. But his comments give this topic extra importance because it demonstrates that - contrary to what I write here - policy makers see monet...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.