Central to the book is the notion that the two institutions are interdependent rather than independent. The authors advocate that through legislation over the years, Congress has set up the Federal Reserve to bear the brunt of blame during times of financial crisis. This blend of political science, history, and economics was a hit for our panel. Why is it important to realize the relationship between Congress and the Fed is interdependent? What roles do transparency and accountability play in the relationship?
We’ve been having a mistaken debate, or so it would seem based on the new book The Myth of Independence. The Federal Reserve, the nation’s central bank and most influential economic regulator, isn’t as independent as critics like Rand Paul and Bernie Sanders suggest. Congress created it, and Congress continues to shape it to the people’s will. This new perspective might just change your expectations about Fed policy and your appreciation for their delicate strategic work.
In this episode, Sarah Binder discusses the historical research that led to this new thesis and helps us appreciate the interplay between two of America’s most important political institutions.
Just when you thought the economy was the only good news you could count on, the stock market took a dive on the heels of Janet Yellen’s exit from the Federal Reserve. Suddenly, Americans everywhere wondered whether the volatility and uncertainty in Washington had finally caught up with the long, steady recovery stretching from those dark days in 2009. Should we be worried? Who’s looking out for the economy? And do they have a plan for the risks that await us in 2018 and beyond?
In this episode, USC Price School Dean Jack H. Knott interviews Atlanta Fed President Raphael W. Bostic on the state of the economy and the forces that keep it humming along.