Central Banking (CB): You express concern in your book, Fault Lines, about Fed policy in the past two decades. Can you talk a little about why that is?

Raghuram Rajan (RR): There used to be a time, around the time when Milton Friedman was in his prime, that there was a sense that the central bank's tools were limited and the Fed didn't know that much more than anyone, and that attempts by the Fed to boost the economy or damp it down were futile. We've gone away from that and it seems that the