Daily Archives: January 12, 2006

IN SEARCH OF CLARITY (AGAIN)

Does he or doesn’t he think asset prices are crucial for setting monetary policy? One could be excused for having a less-than-clear grasp of the answer after digesting the talk dispatched by New York Fed President Timothy Geithner yesterday at the New York Association for Business Economics in Manhattan. Throughout his speech he alternatively endorsed and distanced himself from the value of asset prices as practical tool in the setting of interest rates.

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