November 6, 2023
Hoover Institution | Stanford University
Raghuram Rajan, senior fellow (adjunct) at the Hoover Institution, Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago’s Booth School, and former governor of the Reserve Bank of India and chief economist and director of research at the International Monetary Fund, discussed his recent book Monetary Policy and Its Unintended Consequences.
PARTICIPANTS
Raghuram Rajan, John Taylor, Michael Bordo, Michael Boskin, Pedro Carvalho, John Cochrane, Bradley Combest, Abeer Dahiya, Steven Davis, Randi Dewitty, John Duca, Christopher Erceg, Andy Filardo, Krishna Guha, Bob Hall, Nicholas Hope, Ken Judd, Matthew Kahn, Marc Katz, Dan Kessler, Kevin Kliesen, Donald Koch, Evan Koenig, Stephen Kotkin, Anne Krueger, Jeff Lacker, David Laidler, Ross Levine, Mickey Levy, John Lipsky, Dennis Lockhart, David Malpass, Ellen Meade, Axel Merk, David Neumark, David Malpass, Robert Oster, Radek Paluszynski, Valerie Ramey, Larry Schembri, Paul Schmelzing, Allison Schrager, Pierre Siklos, Frank Smets, John Smyth, Richard Sousa, Mark Steinmeyer, Victor Varcarcel, Mark Wynne
ISSUES DISCUSSED
Raghuram Rajan, senior fellow (adjunct) at the Hoover Institution, Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago’s Booth School, and former governor of the Reserve Bank of India and chief economist and director of research at the International Monetary Fund, discussed his recent book Monetary Policy and Its Unintended Consequences.
John Taylor, the Mary and Robert Raymond Professor of Economics at Stanford University and the George P. Shultz Senior Fellow in Economics at the Hoover Institution, was the moderator.
BOOK DESCRIPTIO
Click the following link to the book Monetary Policy and Its Unintended Consequences
(MIT Press 2023)
A call for an end to aggressive monetary policy and a return to smart growth from an eminent researcher and former central banker.
Central banks took extraordinary measures to stabilize markets and enhance growth after thefinancial crisis of 2008, but without giving much thought to the long-term consequences. It was a response, Raghuram Rajan argues, that set a dangerous precedent: the more centrals bank did, the more they were expected to do, and the more they ended up doing. Monetary Policy and Its Unintended Consequences looks back at what this meant for where we are now.
A former central banker who foresaw the 2008 crisis and wrote a bestselling book about the risks of excessively accommodative monetary policy, Rajan takes a hard look at central bank behavior and its embrace of increasingly aggressive strategies to keep economies afloat. Despite efforts to strengthen markets, the 2020 pandemic showed economies remain as vulnerable as ever to adverse shocks, prompting large-scale interventions that, in the case of Covid, led to persistent inflation and market volatility. By examining these undertheorized outcomes, Rajan hopes central banks will recognize the unintended consequences of using all of the instruments available to them, which will encourage them to return to their core mandates of low inflation and financial stability.
Monetary Policy and Its Unintended Consequences is the most thorough account yet of the choices central banks have made to meet the economic challenges of our century and why they must rethink these choices.
To read the slides, click the following link
https://www.hoover.org/sites/default/files/2023-12/Hoover%20Monetary%20Policy%20slides-12-6-23.pdf
