University Lecture with Michael Woodford
Over the past two decades, central banks, including the Federal Reserve, have become much more open about the bases for their policy decisions. Indeed, "communication policy" has been one of the key tools with which they have sought to respond to the recent economic crisis; this has even included statements about policy intentions extending years into the future, as with the Federal Reserve's recent commitment to maintain low interest rates until a particular level of unemployment is reach. Yet, some would argue that such declarations about future policy are unwise, given the unforeseeability of the future, and all the more so given the grounds for uncertainty at present. The lecture will discuss reasons for assigning importance to advance statements about future policy, and will consider the desirability of recent promises by the Federal Reserve in the light of these general principles.
The lecture will be followed by a question and answer session with the audience.
Provost John Coatsworth welcomes guests to the University Lecture and introduces Michael Woodford, John Bates Clark Professor of Political Economy.
Professor Michael Woodford delivers his lecture entitled "Fedspeak: Does it Matter How Central Bankers Explain Themselves?"
Columbia University students and audience members line up to participate in a question and answer session with Professor Michael Woodford.