After speaking on campus, he held a press conference and spoke at the Rotary Club meeting at the Doubletree Inn. Stern has served as the President since 1985. The federal reserve consists of 12 districts and is the country's central bank system. Stern said the reserve sets the monetary policy for the nation, but its most important role is maintaining a low inflation rate. Minn. Stern said although the federal reserve measures economic growth with tangible numbers, such as increased production of goods, education still plays an important role in the economy.
Education is productivity enhancing.
He added that people with college degrees tend to earn more money than people without, although the ratio has evened-out in the past few years. In a question to Stern, UM President George Dennison said that from 1990 to 1999, the portion of the national gross domestic product that goes to higher education has declined. Federal investments have held steady, while state funding has declined, Dennison said. Because the principal beneficiary of higher education is usually the individual student, the public should not bear the burden for costs that benefit private individuals, he said. Stern also addressed the perceived problem of debt, especially with regards to college students.