where further research is required. i will conclude by reiterating one aspect of the low interest rate and low productivity growth problems that i have mentioned previously — the fact that, for several years, the fed has been close to being “ the only game in town, ” as mohamed el - erian described it in his recent book. 5 but macroeconomic policy does not have to be confined to monetary policy. certain fiscal policies, particularly those that increase productivity, can increase the potential of the economy and help confront some of our longer - term economic challenges. while there is disagreement about what the most effective policies would be, some combination of improved public infrastructure, better education, more encouragement for private investment, and more effective regulation all likely have a role to play in promoting faster growth of productivity and living standards. by raising equilibrium interest rates, such policies may also reduce the probability that the economy, and the federal reserve, will have to contend more than is necessary with the effective lower bound on interest rates. 1 views expressed are mine and are not necessarily those of the federal reserve board or the federal open market committee. 2 see stanley fischer ( 2016 ), “ why are interest rates so low? causes and implications, ” speech delivered at the economic club of new york, new york, october 17. 3 see janet l. yellen ( 2016 ), “ macroeconomic research after the crisis, ” speech delivered at “ the elusive ‘ great ’ recovery : causes and implications for future business cycle dynamics, ” 60th annual economic conference, held at the federal reserve bank of boston, boston, october 14. 4 see, for example, olivier blanchard, eugenio cerutti, and lawrence summers ( 2015 ), “ inflation and activity — two explorations and their monetary policy implications ( pdf ), " imf working paper wp / 15 / 230 ( washington : international monetary fund, november ) ; and dave reifschneider, william wascher, and david wilcox ( 2015 ), “ aggregate supply in the united states : recent developments and implications for the conduct of monetary policy, " imf economic review, vol. 63 ( march ), pp. 71 – 109. 5 see mohamed a. el - erian ( 2016 ), the only game in town : central banks, instability, and avoiding the next collapse ( new york : random house ). 2 / 2 bis central bankers'speeches

- effective government. on the first point, many lessons can be drawn from the downward swing in the housing industry, ranging from those that individual consumers can learn at the micro level, to those that financial companies can learn about investment and oversight. in that regard, the federal reserve has proposed new rules to strengthen regulatory oversight and to protect consumers in the future, and we continue to assess this episode to determine what more can be done to help homebuyers and homeowners. of course, one of the most effective ways to help consumers is to empower them with information. and this gets to our first case for economic and financial literacy : improving consumers'economic decision making will enhance the effectiveness of new rules and regulations. and while we at the federal reserve are charged with regulatory duties, we certainly see the value of education and the positive impact it can have on the broader economy. while the current troubles in the housing industry stem from a number of causes, a better - informed citizenry would likely have resulted in more - prudent decision making and, consequently, less harm to the economy. in the matter of the national economy, here the call for economic education is based on the idea that a better - informed citizenry makes for better economic policymaking. this is a subtle argument, but its logic is no less clear. as my friend alan blinder, the noted princeton economist and textbook author, as well as the former vice chairman of the federal reserve's board of governors, has said, an uneducated citizenry can lead to simplistic policy solutions, and those solutions are usually suboptimal. " the fact that the basic level of economic literacy in the country, indeed in the world, is so low, " alan has said, " is one of the things that leaves the political process so vulnerable to this malady. " 1 now, even alan would admit that it's difficult to draw a direct line from economic literacy to economic policymaking, but politicians listen to their constituents at home, just as they are supposed to do. and at a time when our elected officials are confronted with a myriad of options to address a slowing economy, or when they consider the increasing fears about a globalizing economy, it's fair to ask whether they are getting good economic counsel from their constituents. this is not to say that there is only one valid answer for these complicated questions, but it does mean that we get a better answer when we are all better informed