Wednesday, August 31, 2005


The New Economist has a bunch of papers and speeches up from the August 2005 Jackson Hole Greenspan Love-In.

Alan Greenspans opening remarks about the role of central banks is especially interesting, if you're into that kind of thing. He outlines the new role central banks are finding themselves playing:

Given our inevitably incomplete knowledge about key structural aspects of an ever-changing economy and the sometimes asymmetric costs or benefits of particular outcomes, the paradigm on which we have settled has come to involve, at its core, crucial elements of risk management. In this approach, a central bank needs to consider not only the most likely future path for the economy but also the distribution of possible outcomes about that path. The decisionmakers then need to reach a judgment about the probabilities, costs, and benefits of various possible outcomes under alternative choices for policy.