[![Cato Institute 25th Annual Monetary Conference logo](/sites/cato.org/files/styles/optimized/public/download-remote-images/www.cato.org/90833425699/globe_60.jpg?itok=ghNNIsEZ)](/sites/cato.org/files/download-remote-images/www.cato.org/90833425699/globe_60.jpg) 

## Cato Institute 24th Annual Monetary Conference

# Federal Reserve Policy in the Face of Crises

**Thursday, November 16, 2006 
F.A. Hayek Auditorium 
Cato Institute 
8:00 a.m. – 5:00 p.m.**

| About the Conference | [Conference Schedule](/events/monconf2006/program.html) |

| [![Randall S. Kroszner](/sites/cato.org/files/styles/optimized/public/download-remote-images/www.cato.org/90833425699/kroszner_80.jpg?itok=ni88Y4AN)](/sites/cato.org/files/download-remote-images/www.cato.org/90833425699/kroszner_80.jpg) | [![William Poole](/sites/cato.org/files/styles/optimized/public/download-remote-images/www.cato.org/90833425699/poole_80.jpg?itok=K4FejcZh)](/sites/cato.org/files/download-remote-images/www.cato.org/90833425699/poole_80.jpg) | [![Anna J. Schwartz](/sites/cato.org/files/styles/optimized/public/images/anna-schwartz.jpg?itok=ExDrWd8Z)](/sites/cato.org/files/images/anna-schwartz.jpg) | [![Robert J. Barro](/sites/cato.org/files/styles/optimized/public/download-remote-images/www.cato.org/90833425699/barro_80.jpg?itok=ycrBxryv)](/sites/cato.org/files/download-remote-images/www.cato.org/90833425699/barro_80.jpg) |
|:-:|:-:|:-:|:-:|
| **Randall S. Kroszner** Federal Reserve Board | **William Poole** Federal Reserve Bank of St. Louis | **Anna J. Schwartz** National Bureau of Economic Research | **Robert J. Barro** Harvard University |

The U.S. twin deficits, huge unfunded liabilities in Social Security and Medicare, and incipient inflation are eroding the foreign-exchange value of the dollar and its role as a reserve currency. What, if anything, should the Fed do? The uncertainty surrounding Fed policy in the post-Greenspan era stems from the lack of a formal monetary rule and no clear guidelines on whether and how the Fed should respond to crises.

This year’s monetary conference will address the following issues:

- How should the Fed respond to growing global imbalances and a falling dollar?
- Is global competition sufficient to discipline central banks?
- Did the Greenspan Fed err by providing too much liquidity in the face of crises and then overshooting in withdrawing that liquidity?
- How will the growing unfunded liabilities in Social Security and Medicare affect monetary policy?
- Should the Fed adopt inflation targeting?

Please join our distinguished speakers on November 16, at the Cato Institute, to discuss these and other important policy issues that confront the Bernanke Fed.

**Conference Schedule**

| 8:00 — 9:00 a.m. | Registration — *F. A. Hayek Auditorium Foyer* |
|---|---|
| 9:00 — 9:10 a.m. | Welcoming Remarks — *F. A. Hayek Auditorium* [[![Media Name: ipod.jpg](/sites/cato.org/files/styles/optimized/public/download-remote-images/object.cato.org/169672258913/ipod.jpg?itok=5gSrqX94)](/sites/cato.org/files/download-remote-images/object.cato.org/169672258913/ipod.jpg) ](https://cdn.cato.org/archive-2006/cca-11-16-06-1.mp3)[Download a Podcast of the Welcoming Remarks and Keynote (MP3)](https://cdn.cato.org/archive-2006/cca-11-16-06-1.mp3) **[James A. Dorn](/people/dorn.html)** Vice President for Academic Affairs, Cato Institute [](/realaudio/cc-11-16-06-1.ram) |
| 9:10 — 9:45 a.m. | Keynote Address **Randall S. Kroszner\*** Board of Governors, Federal Reserve System [Randall S. Kroszner’s remarks](/events/monconf2006/creating_stability.pdf) |
| 9:45 — 11:00 a.m. | Panel 1: Responding to Financial Crises: What Role for the Fed? [[![Media Name: ipod.jpg](/sites/cato.org/files/styles/optimized/public/download-remote-images/object.cato.org/169672258913/ipod.jpg?itok=5gSrqX94)](/sites/cato.org/files/download-remote-images/object.cato.org/169672258913/ipod.jpg)](https://cdn.cato.org/archive-2006/cca-11-16-06-2.mp3)[Download a Podcast of Panel 1 (MP3)](https://cdn.cato.org/archive-2006/cca-11-16-06-2.mp3) Moderator: **George Melloan** Author and former op-ed columnist, *Wall Street Journal* **William Poole** President, Federal Reserve Bank of St. Louis [Draft of William Poole’s remarks](http://www.stlouisfed.org/news/speeches/2006/11_16_06.html) **Anna J. Schwartz** Research Associate, National Bureau of Economic Research [Draft of Anna J. Schwartz’s remarks](schwartz.pdf) **Jeffrey A. Frankel** James W. Harpel Professor of Capital Formation and Growth, Harvard University [Draft of Jeffrey A. Frankel’s remarks](frankel.pdf) **[William A. Niskanen](/people/niskanen.html)** Chairman, Cato Institute [Draft of William A. Niskanen’s remarks](niskanen.pdf) [Graph](niskanengraph.pdf) |
| 11:00 — 11:15 a.m. | Break |
| 11:15 a.m. — 12:30 p.m. | Panel 2: The Global Financial System: A Source of Strength or Weakness? [[![Media Name: ipod.jpg](/sites/cato.org/files/styles/optimized/public/download-remote-images/object.cato.org/169672258913/ipod.jpg?itok=5gSrqX94)](/sites/cato.org/files/download-remote-images/object.cato.org/169672258913/ipod.jpg)](https://cdn.cato.org/archive-2006/cca-11-16-06-3.mp3)[Download a Podcast of Panel 2 (MP3)](https://cdn.cato.org/archive-2006/cca-11-16-06-3.mp3) Moderator: **Alan Reynolds** Senior Fellow, Cato Institute **Peter B. Kenen** Walker Professor of Economics and International Finance Emeritus, Princeton University; Senior Fellow in International Economics, Council on Foreign Relations [Draft of Peter B. Kenen’s remarks](kenen.pdf) **Eswar Prasad** Head, Financial Studies Division, International Monetary Fund [Draft of Eswar Prasad’s remarks](prasad.pdf) **Kristin J. Forbes** Associate Professor of International Management, MIT [Draft of Kristin J. Forbes’s remarks](forbes.pdf) **Benn Steil** Director of International Economics, Council on Foreign Relations [Draft of Benn Steil’s remarks](steil.pdf) |
| 12:30 — 1:30 p.m. | Luncheon — *Wintergarden* |
| 1:30 — 2:30 p.m. | Panel 3: The Growing Fiscal Imbalance and the Future of Monetary Policy [[![Media Name: ipod.jpg](/sites/cato.org/files/styles/optimized/public/download-remote-images/object.cato.org/169672258913/ipod.jpg?itok=5gSrqX94)](/sites/cato.org/files/download-remote-images/object.cato.org/169672258913/ipod.jpg)](https://cdn.cato.org/archive-2006/cca-11-16-06-4.mp3)[Download a Podcast of Panel 3 (MP3)](https://cdn.cato.org/archive-2006/cca-11-16-06-4.mp3) Moderator: **Mickey Levy** Chief Economist, Bank of America **David Malpass** Chief Economist, Bear Stearns [Draft of David Malpass’s remarks](malpass.pdf) **Douglas Holtz-Eakin** Paul A.Volcker Chair in International Economics, Council on Foreign Relations [Draft of Douglas Holtz-Eakin’s remarks](holtz-eakin.pdf) **[Jagadeesh Gokhale](/people/gokhale.html)** Senior Fellow, Cato Institute [Draft of Jagadeesh Gokhale’s remarks](gokhale.pdf) |
| 2:30 — 2:45 p.m. | Break |
| 2:45 — 3:45 p.m. | Panel 4: Is Inflation Targeting Suitable for the United States? [[![Media Name: ipod.jpg](/sites/cato.org/files/styles/optimized/public/download-remote-images/object.cato.org/169672258913/ipod.jpg?itok=5gSrqX94)](/sites/cato.org/files/download-remote-images/object.cato.org/169672258913/ipod.jpg)](https://cdn.cato.org/archive-2006/cca-11-16-06-5.mp3)[Download a Podcast of Panel 4 (MP3)](https://cdn.cato.org/archive-2006/cca-11-16-06-5.mp3) Moderator: **William A. Niskanen** Chairman, Cato Institute **Bennett T. McCallum** H. J. Heinz Professor of Economics, Carnegie Mellon University [Draft of Bennett T. McCallum’s remarks](mccallum.pdf) **[Lawrence H. White](/people/white.html)** F. A. Hayek Professor of Economic History, University of Missouri – St. Louis [Draft of Lawrence H. White’s remarks](whiteinflationtargeting.pdf) **Robert Hetzel** Senior Economist, Federal Reserve Bank of Richmond [Draft of Robert Hetzel’s remarks](hetzel.pdf) |
| 3:45 — 4:15 p.m. | Closing Address [[![Media Name: ipod.jpg](/sites/cato.org/files/styles/optimized/public/download-remote-images/object.cato.org/169672258913/ipod.jpg?itok=5gSrqX94)](/sites/cato.org/files/download-remote-images/object.cato.org/169672258913/ipod.jpg)](https://cdn.cato.org/archive-2006/cca-11-16-06-6.mp3)[Download a Podcast of Closing Remarks (MP3)](https://cdn.cato.org/archive-2006/cca-11-16-06-6.mp3) **Robert J. Barro** M. Warburg Professor of Economics, Harvard University [Draft of Robert J. Barro’s remarks](barro.pdf) |
| 4:15 — 5:00 p.m. | Reception — *Wintergarden* |