My answer on Quora: There are different indicators one can look at to help assess if the monetary policy of a central bank is effective or not, but such assessments have been getting harder to make. On the surface On the surface, a central bank can be viewed as effective in its monetary policy if […]

My answer on Quora: The ideal measure is output or value-add per worker. I say ideal because true output or true value is hard to measure. GDP has been labelled one of the greatest inventions of the 20th century, but it is not well suited for the 21st century. When output is a physical item, like […]

My answer on Quora: Two things: 1) Fiscal Policy Very simply (and very broadly), Keynes established that fiscal policy can play a role in managing aggregate demand. In plain English: government spending (whether it’s increasing or decreasing) can help the economy from getting too hot or too cold. When it is too hot (resources (capital […]

Gillian Tett of the Financial Times recently posed this question in an opinion piece: “How should the Federal Reserve engage with the public?” Soon after becoming chairman of the Fed, Jerome Powell did something no other Fed chairperson (or perhaps any major central bank governor) has done before. He posted a video where he speaks […]

From Brookings (with Nirav Patel): Slow productivity growth and rising income inequality have shaped the world economy in a time of rapid technological change. A variety of explanations have emerged to help us understand these related trends, but one overarching theme is the decline in competition. The combination of increasingly concentrated markets, rising market power of large firms, and […]

From Brookings, Africa in Focus blog (with Mariama Sow): The World Cup, which starts this week, is the most-watched sporting event in the world, having reached more than 3 billion people in 2014. This year, Egypt, Morocco, Nigeria, Senegal, and Tunisia will be representing Africa. African teams in the World Cup are rarely predicted to advance beyond the […]

My answer on Quora: Two key points stand out to me on this issue. The first is on what we know about the economy. The second is on how we talk about the economy. We do know a lot about the economy, but we don’t always know what the best way forward is. This is […]