Peterson Institute publications
The Peterson Institute for International Economics is a private, nonprofit, nonpartisan
research institution devoted to the study of international economic policy. More › ›
RSS News Feed Search

Testimony

Legislation to Reform the Federal Reserve on Its 100-Year Anniversary

by Simon Johnson, Peterson Institute for International Economics

Prepared remarks submitted to the House Financial Services Committee, Hearing on "Legislation to Reform the Federal Reserve on Its 100-Year Anniversary"
July 10, 2014

View full document [pdf]


All prosperous industrial democracies have a central bank that has considerable operational independence, combined with a reasonable amount of democratic accountability. Experience over the past 100 years across a wide range of countries has repeatedly demonstrated the paramount importance of creating a buffer between officials appointed to control monetary policy and elected politicians. At the same time, everyone involved in designing and implementing monetary policy and financial regulation should ultimately be accountable, at least indirectly, to the electorate.


RELATED LINKS

Policy Brief 13-21: Lehman Died, Bagehot Lives: Why Did the Fed and Treasury Let a Major Wall Street Bank Fail? September 2013

Op-ed: Misconceptions About Fed's Bond Buying September 2, 2013

Op-ed: After Bernanke, Make Unconventional Policy the Norm July 15, 2013

Testimony: The Fed at 100: Can Monetary Policy Close the Growth Gap and Promote a Sound Dollar? April 18, 2013

Op-ed: How the IMF Can Help Cut US Joblessness February 4, 2013

Policy Brief 12-25: Currency Manipulation, the US Economy, and the Global Economic Order December 2012

Policy Brief 12-15: Restoring Fiscal Equilibrium in the United States June 2012

Book: The Global Outlook for Government Debt over the Next 25 Years: Implications for the Economy and Public Policy June 2011

Book: The Long-Term International Economic Position of the United States April 2009

Article: The Dollar and the Deficits: How Washington Can Prevent the Next Crisis November 2009

Speech: Rescuing and Rebuilding the US Economy: A Progress Report July 17, 2009

Book: US Pension Reform: Lessons from Other Countries February 2009

Testimony: The Dollar and the US Economy July 24, 2008

Testimony: Why Deficits Matter: The International Dimension January 23, 2007

Book: Accountability and Oversight of US Exchange Rate Policy June 2008

Op-ed: Bubbles Are Getting Blown Out of All Proportion September 8, 2004

Book: The United States as a Debtor Nation September 2005