00:00    |    
Initial credits
00:06    |    
01:06    |    
Anecdote on the importance of communication at the Federal Reserve (FED)
03:21    |    
Importance of economic history
Quotes A Monetary History of the United States, Milton Friedman and Anna Jacobson Schwartz
04:49    |    
Amendment of the Federal Reserve Act
Exercise of the Emergency Powers in March 2008
05:43    |    
Historical parallel: Panic of 1907
Creation of the Central Bank in the United States
Economic shocks in 2007
Shadow banking sector in 1907: The Trust System
Moral hazard problem of JP Morgan in 1907
Justification for the actions the FED took in 2008
11:20    |    
Inflation and deflation issues of the FED
Impulse of liquidity in the economy
Quotes Milton Friedman on the problem of inflation
Current inflation levels in the United States
Implications of the money supply to the demand curve in the market
Current increase in system reserves
Economic situation of the U.S. in 2010
Japan deflation economic problem
Ben Bernanke's recovery program
Role of expectations in monetary policy
Recovery of confidence in the markets
Position of the dollar value abroad
Ben Bernanke's concern about deflation
22:38    |    
Costs and impacts of deflation
Delayed consumption in the markets
Uncertainty about wages and job prospects
Debt deflation spiral effects on economy
27:19    |    
Real deflation threat to the American economy
28:49    |    
FED's tools and techniques for preventing deflation
30:55    |    
FED's actions through time according to changes in the economy 
33:27    |    
Exogenous consequences to the American economy 
35:26    |    
Question and answer period
Why is it so difficult to recover from a deflation process?
Increase in the demand for reserves the FED provides
Inflation expectations indicators
Regarding the ability of the FED to print money without creating inflation, what internal and external factors affect this phenomenon?
Creation of international swap lines
U.S. dollar as an international reserve currency
Impact of Chinese currency in the future
Japan, an example in the past
Alternative international currencies
Do you think the United States could enter into a hyperinflation crisis?
What would be the impact for the U.S. if China stops devaluating the yuan?
What does the FED do for the economic growth?
Is GDP the ultimate measure to determine if the FED is succeding or not?
What does the Gross Domestic Product really determine?
Quotes  The Great Stagnation, Tyler Cowen
GDP as a less good measure for economic progress
What effects do high fiscal deficit have, and what is the government planning to do regarding this problem?
Ability of the U.S. to easily finance its fiscal challenges
Excellent ideas by the Partisan Commission to evade fiscal problems
Why did you leave the FED?
Are income distribution and income inequality a concern for the FED?
Criticism on the FED's actions
Can you explain the moral hazard problem that you encountered with the Lehman Brothers' case?
Diminish of risk spreads
What about the moral hazard these decisions have on the future of financial institutions?
Metaphor on the effect of bank bailouts in the middle of an economic crisis
FED's actions based on the economic ideas of Milton Friedman
Where do you think a line should be drawn regarding government intervention in the economy?
Do you think a new economic crisis could be caused by an increase in the interest rates?
01:25:14    |    
Final words
01:26:23    |    
Final credits




Myths and Facts about Inflation Risks and Dollar Devaluation as Consequence of the FED Decisions towards the Crisis

16 de marzo de 2011   | Vistas: 2 |  

In the middle of America's worst economic crisis, the Federal Reserve System (FED) assumed an important and essential role in the economic recovery process. In this conference, Randall Kroszner talks about his experience at the FED as a former member, explaining the techniques and ideas that guided their actions amidst this difficult situation.

He explains the historical parallel of this crisis and compares it with the Panic of 1907, and contrasts the guides and actions taken formerly with the ones the FED took presently. He also speaks about the economic phenomena of deflation and inflation and how particularly deflation could affect the U.S. economy, based on current economic tendencies. Kroszner focuses on the importance of economic history in the decision-making process in many aspects; and finally, he speaks about the controversial aspects of government intervention, based on the ideas of Milton Friedman.


Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín