Janet L Yellen: Welcoming remarks
Speech by Ms Janet L Yellen, Chair of the Board of Governors of the Federal Reserve
System, at the "Monetary Policy Implementation and Transmission in the Post-Crisis Period",
a research conference sponsored by the Board of Governors of the Federal Reserve
System, Washington DC, 12 November 2015.
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It is my pleasure to welcome you to the Federal Reserve Board's conference on "Monetary
Policy Implementation and Transmission in the Post-Crisis Period." The conference aims to
bring together academic and central bank economists, financial market practitioners, and
policymakers to stimulate debate and research on a topic that is critically important to the
Federal Reserve's mission of conducting monetary policy in the pursuit of maximum
employment and stable prices.
The global financial crisis had profound effects on our economy, and it altered the way many
think about monetary policy. At the peak of the crisis and during its immediate aftermath,
unconventional monetary policy measures were designed and implemented by the Federal
Reserve and other central banks around the world. The post-crisis period has offered
policymakers an opportunity to assess a range of novel policy and operational issues
associated with the conduct of monetary policy and the effectiveness of different policy
options. Specifically, policymakers have to carefully weigh the advantages and
disadvantages of alternative monetary implementation frameworks in the presence of new
policy tools. Moreover, policymakers should be mindful of new channels for monetary policy
transmission that may have emerged from the intricate economic and financial linkages in
our global economy that were revealed by the crisis. Finally, it is crucial to understand the
effect of regulations and possible changes in financial intermediation on monetary policy
implementation and transmission.
The impressive conference program covers the following topics in three sessions: monetary
policy implementation, the transmission of monetary policy, and the effect of regulation and
financial intermediation on monetary policy implementation and transmission. The
presentations and discussions of the 12 academic papers on the conference program will
surely provide a foundation for what I expect will be a stimulating discussion of important
topics over the next two days.
Looking ahead to later today, I am delighted that Vice Chairman Fischer will deliver keynote
remarks on the exchange rate mechanism in the transmission of monetary policy. Tomorrow
the conference concludes with two interesting policy panels on the effect of regulations on
monetary policy and the "optimal design" of monetary policy in the post-crisis world.
Let me also say that I consider the topics covered during this conference highly relevant for
the Federal Reserve System's ongoing efforts to evaluate potential long-run monetary policy
implementation frameworks and to assess a number of issues related to the consideration of
alternative frameworks. I hope the work and ideas presented and discussed over the next
two days will spur subsequent research on these issues and promote further collaboration
among all of you.
As I have often stressed before, in addition to its responsibilities for monetary policy and
financial regulation and supervision, the Federal Reserve takes very seriously its role as a
research institution. I want to thank our research conference committee for putting together
this high-caliber research conference, which has gathered distinguished speakers and
guests from around the world and, I am sure, will add to our understanding of the
implementation and transmission of monetary policy.
Welcome to the Federal Reserve Board. I hope you all have enjoyable and productive
discussions over the next two days.