Ms. Yellen stakes out her position in about as clear a language as you’ll see from a central banker: She believes that it would most likely be a bad idea to raise interest rates to fight financial excesses. Her focus, crucially, is not on preventing Wall Street from having ups and downs, but on making sure that those ups and downs don’t bring economic disaster.This focus on resilience differs from much of the public discussion, which often concerns whether some particular asset class is experiencing a “bubble,” and whether policy makers should attempt to pop the bubble. Because a resilient financial system can withstand unexpected developments, identification of bubbles is less critical.
Blogs I Follow
- Chang-Rae Lee’s On Such a Full Sea is a readable dystopia that really pushes the reader to think hard
- Enjoyed Cynthia Ozick’s story “The Coast of New Zealand” in The New Yorker
- Boneland by Alan Garner
- Encadrement du responsable du centre multimédia de Houndé (CMH) sur les techniques de rédaction des livres pour enfants
- Funny in Farsi by Firoozeh Dumas
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