The FTE Partners with Federal Reserve Board of Governors and the Federal Reserve Bank of Richmond for PTA “Members Only” Conference.
FTE’s 2012 Professional Teachers Association “Members Only” Conference will explore “Perspectives From and On the Federal Reserve System.”
The conference will be held April 26 – 28, 2012, at the Federal Reserve Board of Governors facilities in Washington D.C. Participants will hear presentations by Chairman Bernanke and from Fed staff experts, will tour the Fed facilities, and will take part in Socratic discussions of pre-conference reading selections, including classical and contemporary thought on central banking.
The readings for the conference:
Lombard Street: A Description of the Money Market.
http://www.econlib.org/library/Bagehot/bagLom.html
Bank Runs and Private Remedies Gerald P Dwyer, Jr. and R. Alton Gilbert
http://research.stlouisfed.org/publications/review/89/05/Remedies_May_Jun1989.pdf
Lessons Learned? Comparing the Federal Reserve's Responses to the Crises of 1929-1933 and 2007-2009. David Wheelock
http://research.stlouisfed.org/publications/review/10/03/Wheelock.pdf
What Powers for the Federal Reserve? Martin Feldstein
http://www.aei.org/files/2010/03/01/What%20Powers%20for%20the%20Federal%20Reserve.pdf
Martin Feldstein's balancing (equivicating?) view of the Fed concludes:
There is no doubt that the Federal Reserve deserves some of the
blame for the monetary policy that contributed to the mis-pricing of risk and
the asset bubbles that caused the downturn. There is also no doubt that
the Federal Reserve, like the other financial supervisors, did not give
adequate attention to the capital position and asset quality of the
institutions that they supervised.
But the reforms that are adopted now should aim to strengthen the
performance of the Federal Reserve rather than to reduce its powers. The
Fed should continue to manage monetary policy as it has in the past,
should act as the nation’s lender of last resort, should supervise the large
bank holding companies, and should be given resolution authority over the
institutions that it supervises. While a council of supervisors and regulators
can play a useful role in dealing with macro prudential risks, it should not
replace the central role of the Federal Reserve.
The virtually unlimited lending powers that the Fed has exercised in
creating credit and in helping individual institutions during the past few
years should now be restricted in duration and subjected to formal Treasury
approval backed by Congressional pre-authorization of funds. The Fed’s
capital rules for commercial banks need to be strengthened by replacing
the existing risk-based capital approach with a broader definition of risk and
the introduction of contingent capital. A broader range of Fed regulations
can contribute to overall stability, particularly in mortgage lending. Stronger
Fed powers in dealing with non-bank creators of mortgage products and
other lending authority would be better than the creation of a new
consumer financial protection organization.
The Federal Reserve has made many mistakes in the near century
since its creation in 1913. Fortunately it has learned from its past mistakes
and contributed to the ongoing strength of the American economy. Further
reforms at this time can continue that tradition.
Cambridge, MA
December 2009
Monday, March 5, 2012
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This is a seriously cool opportunity. I put in for it. I am glad the Fed is choosing more transparency.
ReplyDeleteWhile I am not convinced that the FED fully embraces transparency, the work of the Foundation for Teaching Economics to support the economic way of thinking, highly motivated teachers and our society is commendable.
ReplyDeleteEven if it's a half hearted effort, its a half more than before. And yes, FTE does a lot of good. Next time I see you I'll tell you how.
ReplyDeleteI would not characterize FED efforts as half measures in the areas of transparency. In fact, an argument can be constructed that the Bernanke FED is more opaque than previous FEDS.
ReplyDeleteThat said, the issue of transparency, while significant, is secondary to the question - government sanctioned monopolies in central banking generate incentives that lead to perverse consequences.