Thursday, November 16, 2006

FRB: Speech, Kroszner--The Conquest of Worldwide Inflation: Currency Competition and Its Implications for Interest Rates and the Yield Curve--November

Great read: It is from today's speech by Fed GOvernor Randall Kroszner. PERFECT for a money and banking class!

FRB: Speech, Kroszner--The Conquest of Worldwide Inflation: Currency Competition and Its Implications for Interest Rates and the Yield Curve--November 16, 2006:
"I will begin by providing a few facts about the substantial improvement of inflation during roughly the past decade compared with the quarter century that preceded it. I will then try to understand why this remarkable decline in inflation has taken place. In particular, I argue that globalization, deregulation, and financial innovation, in part spurred by experiences of high inflation in the 1980s, have fostered currency competition that has led to improved central bank performance and, hence, the recent conquest of worldwide inflation. Friedrich Hayek had long ago advocated permitting greater competition among currencies, arguing that there would be a race to the top rather than a race to the bottom."

2 comments:

Franz Kraus said...

Great blog with good informations and pictures.
Thank you for this interesting blog.
I have bookmarked it.
Greetz Franz from
Limousinenservice in Munich

Franz Kraus said...

Great blog with good informations and pictures.
Thank you for this interesting blog.
I have bookmarked it.
Greetz Franz from
Limousinenservice in Munich