▶ "So just as I want pilots on the planes that I fly, when it comes to monetary policy, I want to think that there is someone with sound judgement at the controls."; "My theme this evening is that America needs a competitive dollar."; "Inflation is lower and more stable and the real business cycle fluctuations are more modest."; "In short, both experience and economic theory imply that the US could now t to a more competitive dollar without experiencing either increased inflation or decreased economic growth."; "If the Federal Reserve pursues a strong dollar at home while the dollar becomes more competitive in global markets, we can achieve both price stability and a more balanced path of economic growth."; …
"I think that over the last few decades, we have seen better economic outcomes than in the past."; "Homeowners who refinanced their mortgages took out cash and reduced their monthly payments at the same time. Much of the cash obtained by refinancing was spent on consumer durables, home improvements and the like."; "First, I think the science of monetary economics has clearly gotten better."; "Even if the dollar does decline during the coming months, the delays in the response of exports and imports to the more competitive dollar will mean that the increase in aggregate demand from this source may not happen for a year or more."; "Domestic inflation reflects domestic monetary policy."; "But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more competitive dollar without the adverse effects that followed currency declines in other countries."; "And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets."; "An increase in the relative price of products from the low wage manufacturers in Asia and Latin America will also make those products less attractive to American consumers."; "Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just how much the dollar must change to bring about any given reduction in our trade deficit."; "After all, an overvalued dollar gives us the ability to buy foreign goods at lower prices. And the existing volume of exports brings more yen and euros than they would if the dollar were more competitive."; "A second reason why science cannot replace judgement is the behavior of financial markets."; "A rise in the level of saving can reduce aggregate activity temporarily but only a sustained high level of saving makes it possible to have the sustained high level of business investment that contributes to the long-run growth of output."
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Tell me what you know about Martin Feldstein (born 1939), the American economist.
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