2013 Reports

"Fedspeak": Does it Matter How Central Bankers Explain Themselves?

Woodford, Michael

There have been many notable changes in the policies of the Fed and other central banks in response to the global financial crisis and its continuing aftermath, and few would disagree that the importance of these institutions for both the US and the world economy has become more evident as a result. Tonight I want to talk about only one of the notable changes in Fed policy, though it is one that I suspect will come to be seen as a change of historic significance for the institution. This is the increase in recent years in the degree to which the Fed openly discusses its policy deliberations and the bases for its decisions.