Roach questions the Fed’s monetary policy channel through wealth effect, which is prone to generate asset bubbles one after another. He also thinks the Fed should change its narrow policy objective of price stability, but to ensure broader financial stability.
Posts Tagged ‘interview’
Albeit his extreme views sometimes, Taleb is interesting to watch. He is the author of the widely popular book “The Black Swan”.
In this interview, Taleb calls Ben Bernanke ‘procrustes’, Greek word for Dr. stretcher.
Interview of Stephen Roach, former Chief Economist at Morgan Stanley, Chairman of Morgan Stanley Asia, and now a professor at Yale University. He’s teaching Chinese Economy there.
(ht: Greg Mankiw)
Bob Shiller, economics professor at Yale University and a pioneer in behavior finance talks about the importance of confidence in economic recovery. He thinks with lingering high unemployment, the national morale is sinking.
And we have to admit we simply do not know many things in the working of our economy.