This paper assesses the emerging market experience with inflation targeting in recent years. It places this experience in the broader context of global monetary policy. It shows that a shift away from rules based policy by many developed country central banks has adversely affected the inflation...

Research in the early 1980s found that the gains from international coordination of monetary policy were quantitatively small compared to simply getting domestic policy right. That prediction turned out to be a pretty good description of monetary policy in the 1980s, 1990s, and until recently....

This testimony before the Oversight and Investigations Subcommittee of the United States House of Representatives Financial Services Committee discusses the likelihood of continuing bailouts and incentive effects under Title II of the Dodd-Frank Act.

In this paper I argue that central banks should re-normalize monetary policy, including the de facto independence of policy, rather than new-normalize policy to some so called new normal. I explain his view and show that it follows from a review of the actual practice of monetary policy in...

This testimony before the Joint Economic Committee of the United States Congress shows the unintended consequence of the Federal Reserve's unconventional monetary policy. It suggests returning to a rules-based policy in order to promote stable prices, economic growth, and job creation.

This testimony before the Committee on Financial Services before the United States House of Representatives discusses the effect unconventional and more discretionary monetary policy has had on the slow economic recovery following the 2007-2009 recession.

This paper examines the causes of the financial crisis and the relatively slow economic recovery since then. It expands the timeline to the five years before and after the financial crisis in order to get a more complete assessment of what went wrong and how government policy largely caused the...

Thank you for the opportunity to speak at this conference on financial stability. I would like to use the opportunity to discuss three interrelated proposals to bolster and maintain financial stability. The first would reform the rules of bankruptcy to handle large financial institutions with a...

This talk is the written version of remarks, given at a conference marking the retirement of Mervyn King from the Bank of England. It argues that economic performance deteriorated in recent years because of a change in policy rather than because of a shift in the tradeoff between inflation...

This testimony before the Joint Economic Committee of the United States Congress discusses the adverse impacts of the Federal Reserve's recent departure from a rules-based monetary policy and the gains to be made by returning to a steadier monetary policy.