The global financial crisis has revealed to everyone the central importance of the Fed for supporting financial markets, both domestic and international, but there is widespread uneasiness about that revelation. Indeed, the crisis has brought to the fore a long-standing and deeply-rooted uneasiness about the relationship between the Fed and government finance, between the
Fed and Wall Street, and between the Fed and international money markets.
Here is a talk I gave recently at a Roosevelt Institute conference on the Future of the Fed.
Here is a transcript of an earlier, and longer, version of the talk that I gave back in January.