Spence: Politically Piling on Fed Is 'Not Helpful'

The video discusses the unrealistic expectation of a pain-free capitalism, especially after the economic crisis. It highlights the role of central banks in economic recovery and their overestimation of monetary policy impacts. The discussion references literature on capitalism's darker aspects and critiques the Federal Reserve's current challenges and public criticism. The importance of maintaining the Fed's independence is emphasized.

What was the initial focus of central banks in the first two years after the crisis?

• Ensuring the economy did not collapse

• Implementing aggressive monetary policies

• Reducing interest rates

• Increasing government spending

Which author's work is mentioned in relation to the dark side of capitalism?

• Paul Krugman

• Benjamin Friedman

• John Maynard Keynes

• Milton Friedman

What is a potential risk for the Federal Reserve if they exit current policies without complementary measures?

• Increased inflation

• A downturn due to the wealth effect

• Higher unemployment rates

• A stronger currency

What is the criticism of the Federal Reserve System mentioned in the transcript?

• Its lack of transparency

• Its independence and integrity being threatened

• Its failure to control inflation

• Its inability to predict economic downturns

What is considered not helpful in the discussion about the central bank's role?

• Threatening its independence

• Implementing new monetary policies

• Increasing interest rates

• A serious discussion on its functions