Reflections on central banking

In the spirit of this conference, I asked myself what developments in the past 18 years - both in the economy and in the economics profession - were most important in changing the way we at the Federal Reserve have approached and implemented monetary policy.

The Federal Reserve System was created in 1913 to counter the recurrent credit stringencies that had so frequently been experienced in earlier decades. As lender of last resort, we had a mandate that, at least viewed from today's perspective