Monetary Policy in the New Economy

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	Alan Greenspan		Robert McTeer, Jr.

Lawrence Kudlow

Zanny Minton-Beddoes

Benjamin Friedman

Alan Levenson

Mickey D. Levy

James Gwartney

William A. Niskanen

Manuel H. Johnson

Charles I. Plosser

Has the New Economy made traditional tools of monetary policy obsolete or simply made it more difficult for central banks to conduct policy? What should the Fed do? At the Cato Institute's 18th Annual Monetary Conference, cosponsored with The Economist, leading policymakers and monetary experts will discuss those questions and related issues.

The unprecedented expansion of the U.S. economy has shown that recessions are the result of government policy mistakes—especially unexpectedly restrictive monetary policy—rather than inherent to a market economy. Until the last year or so, the Federal Reserve steered an even course, but there is no guarantee of future policy success.

If money growth is too rapid, it will have to be reversed, in the hope of achieving a "soft landing." And if it is too restrictive, a recession is unavoidable. It is thus important to consider the role of monetary policy in the New Economy and how best to stay on a course of stable nominal income growth and low inflation, so that market forces can work their magic.

Watch Part 1 of the RealVideo Presentation
9:00–9:10 a.m.	Welcoming Remarks: James A. Dorn, Vice President for Academic Affairs, Cato Institute
9:10–9:45 a.m.	Keynote Address: Alan Greenspan, Chairman, Federal Reserve Board "Remarks by Chairman Alan Greenspan on Challenges for Monetary Policymakers"
9:45–11:00 a.m.	Panel 1—The New Economy: Implications for Monetary Policy Moderator: Zanny Minton-Beddoes, Economics Correspondent, The Economist Lawrence Kudlow, Chief U.S. Economist, ING Barings Robert L. Hetzel, Senior Economist, Federal Reserve Bank of Richmond "Monetary Policy in a World of Uncertain Productivity Growth," [PDF, 24pp, 63kb] Charles I. Plosser, John M. Olin Distinguished Professor of Economics and Public Policy, University of Rochester "Does the 'New' Economy Call for a 'New' Monetary Policy?," [PDF, 11pp, 27kb] Manuel H. Johnson, Partner, Johnson Smick International; and former Vice Chairman, Federal Reserve "The New Economy: Implications for Monetary Policy," [PDF, 9pp, 23kb]
Watch Part 2 of the RealVideo Presentation
11:15 a.m.–12:30 p.m.	Panel 2—What Should the Fed Do? Moderator: Harvey Rosenblum, Senior Vice President and Director of Research, Federal Reserve Bank of Dallas James Gwartney, Chief Economist, U. S. Congress, Joint Economic Committee "Achieving Monetary Stability at Home and Abroad," [PDF, 28pp, 83kb] William A. Niskanen, Chairman, Cato Institute "A Test of the Demand Rule," [PDF, 7pp, 17kb] Alan Levenson, Chief Economist, T. Rowe Price "Monetary Policy in the New Economy: What Should the Fed Do?" [PDF, 6pp, 19kb] Scott F. Grannis, Chief Economist, Western Asset Management Co. "What Should the Fed Do," [PDF, 9pp, 26kb]
Watch Part 3 of the RealVideo Presentation
1:15 - 2:00 p.m.	LUNCHEON ADDRESS: Robert D. McTeer, Jr., President and CEO, Federal Reserve Bank of Dallas
2:00 - 3:15 p.m.	PANEL 3 Will the Information Age Make Central Banks Obsolete? Moderator: Donald L. Luskin, President, CEO and Co-Founder, MetaMarkets.com Benjamin Friedman, William Joseph Maier Professor of Economics, Harvard University "The Threat to Monetary Policy from the Electronic Revolution in Banking" (PDF, 8pp, 25kb) Richard W. Rahn, President, Novecon Ltd. and Novecon Management Co., L.P. "The Impact of Digital Money on Central Banks" (PDF, 8pp, 25kb) Lawrence H. White, F. A. Hayek Professor of Economic History, University of Missouri - St. Louis "In What Respects Will the Information Age Make Central Banks Obsolete?" (PDF, 11pp, 34kb) Bob Gelfond, CEO and Founder, MagiQ Technologies "Is the Fed Obsolete" (PDF, 13pp, 36kb)
Watch Part 4 of the RealVideo Presentation
3:30 - 4:30 p.m.	PANEL 4 Separating Fiscal from Monetary Policy in the New Economy Moderator: Lincoln Anderson, Chief Investment Officer, LPL Financial Services Alan Reynolds, Director of Economic Research, Hudson Institute "The Fiscal-Monetary Policy Mix" (PDF, 17pp, 45kb) W. Lee Hoskins, Senior Fellow, Pacific Research Institute and former President, Federal Reserve Bank of Cleveland "Economic Policy: Credible Commitments" (PDF, 10pp, 28kb) Mickey D. Levy, Chief Economist, Bank of America "Don't Mix Monetary and Fiscal Policies: Why Return to an Old, Flawed Framework?" (PDF, 10pp, 28kb)