KNOWLEDGE FOR ACTION

POLITICS, INDEPENDENCE, AND

LONG-TERM LOW INTEREST

RATES AT THE FEDERAL

RESERVE

Peter Conti-BrownAssistant Professor

KNOWLEDGE FOR ACTION

Standard Acccount of Central Bank Independence

Legal Separation

Politicians (usually the President) Central Bankers (usually the Fed Chair)

Techn

ocratic

Skill

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Metaphors of Fed Independence

Ulysses Contract

3

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Metaphors of Fed Independence: Punch Bowl

4

The Fed is “in the position

of the chaperone who has

ordered the

punch bowl removed just

when the party was really

warming up.” William

McChesney Martin (Fed

Chair, 1955).

KNOWLEDGE FOR ACTION Peter Conti-Brown 5

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KNOWLEDGE FOR ACTION

Standard Acccount of Fed Independence...

Legal Separation

Politicians (usually the President) Central Bankers (usually the Fed Chair)

Techn

ocratic

Skill

…is

KNOWLEDGE FOR ACTION Peter Conti-Brown 9

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KNOWLEDGE FOR ACTION

The Federal Reserve Coalition

Peter Conti-Brown 14

KNOWLEDGE FOR ACTION

The Federal Reserve Coalition

Peter Conti-Brown 15

KNOWLEDGE FOR ACTION

What Will Trump Do?

Peter Conti-Brown 16