Avoiding group think and conflicts of interest: widening the circle of central bank advice

Central banks are responsible for contributing to a healthy macroeconomy. Yet, in the run-up to the crisis the Federal Reserve kept the federal funds rate low, allowed a progressively high ratio of debt to assets held by banks and failed to warn of the dangers increasingly complex derivatives presented. Instead of mitigating the expanding housing bubble, the Federal Reserve encouraged it. When this bubble popped it led to the greatest financial crisis since the Great Depression. The Federal Rese

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