What Marvin Goodfriend Brings to the Federal Reserve

The video discusses the economic stance of a new governor, highlighting his alignment with new Keynesian economics and his preference for a single mandate focused on inflation. It explores the idea of setting an inflation target by law and using a rules-based framework for the Fed's policy decisions. Marvin Goodfriend's critique of the Fed's actions during the Great Recession, including his opposition to quantitative easing and support for negative interest rates, is also covered.

What economic approach does the new governor align with?

• Supply-Side Economics

• Monetarism

• New Keynesian Economics

• Classical Economics

What is the governor's stance on the Fed's mandate?

• He supports no mandate at all.

• He supports a dual mandate.

• He believes in a single mandate focused on employment.

• He advocates for a single mandate focused on inflation.

How does the governor view the use of rules in policy setting?

• He suggests using rules as a framework for understanding decisions.

• He advocates for rules to be set by Congress.

• He believes decisions should be strictly based on rules.

• He thinks rules should be ignored in policy setting.

What is Marvin Goodfriend's opinion on quantitative easing?

• He is neutral about its effectiveness.

• He supports it as an effective tool.

• He thinks it should be expanded.

• He believes it is ineffective.

Which unconventional monetary policy does Marvin Goodfriend support?

• Negative Interest Rates

• Yield Curve Control

• Helicopter Money

• Quantitative Easing