Rethinking stabilization policy.

For some time, the use of monetary and fiscal policies to smooth business cycle fluctuations has taken a back seat to longer term objectives of restoring price stability and fiscal balance. Many policymakers and academic economists have held the view that fiscal policy had little or no short-run

The Federal Reserve Bank of Kansas City sponsored a symposium, "Rethinking Stabilization Policy," at Jackson Hole, Wyoming, on August 29-31, 2002. The symposium brought together a distinguished group of central bank officials, academic economists, and business economists to discuss the potential scope for stabilization policy in today's new environment. The papers presented at the symposium and the ensuing discussion examined the roles of monetary and fiscal stabilization policies, their effectiveness and limitations, and their compatibility with pursuing long-run stability and fiscal sustainability. The symposium proceedings will be available soon.

For a copy of the current or past symposium proceedings, please visit our website at www.kc.frb.org or write us at:

Public Affairs Department
Federal Reserve Bank of Kansas City
925 Grand Boulevard
Kansas City, Missouri 64198

PAST SYMPOSIUMS

Economic Policy for the Information Economy (2001)

Global Economic Integration: Opportunities and Challenges (2000)

New Challenges for Monetary Policy (1999)

Income Inequality: Issues and Policy Options (1998)

Maintaininng Financial Stability in a Global Economy (1997)

Achieving Price Stability (1996)

Budget Deficits and Debt: Issues and Options (1995)

Reducing Unemployment: Current Issues and Policy Options (1994)

Changing Capital Markets: Implications for Monetary Policy (1993)

Policies for Long-Run Economic Growth (1992)

RETHINKING STABILIZATION POLICY

A Symposium Sponsored by the Federal Reserve Bank of Kansas City August 29-31, 2002

Session I Chair STANLEY FISCHER, Vice Chairman--Citigroup

Opening Remarks

ALAN GREENSPAN, Chairman--Board of Governors of the Federal Reserve System

The Evolution of Economic Understanding and Postwar Stabilization Policy

CHRISTINA D. ROMER, Professor--University of California at Berkeley

DAVID H. ROMER, Professor--University of California at Berkeley

Commentary

THOMAS J. SARGENT, Professor--Stanford University and Senior Fellow--Hoover Institution

Is There a Role for Discretionary Fiscal Policy?

ALAN J. AUERBACH, Professor--University of California at Berkeley

Commentary

MARTIN FELDSTEIN, President and CEO--National Bureau of Economic Research

FUMIO HAYASHI, Professor--University of Tokyo

Monetary Policy in a Changing Economic Environment

OTMAR ISSING, Member of the Executive Board--European Central Bank

GUILLERMO ORTIZ, Governor--Bank of Mexico

YUTAKA YAMAGUCHI, Deputy Governor--Bank of Japan

Session II

Chair

JOHN B. TAYLOR, Under Secretary for International Affairs--United States Treasury

Monetary Policy and Real Stabilization

LARS E.O. SVENSSON, Professor--Princeton University

Commentary

MATTI VANHALA, Governor--Bank of Finland

Should the European Central Bank and the Federal Reserve Be Concerned About Fiscal Policy?

MATTHEW B. CANZONERI, Professor--Georgetown University

ROBERT E. CUMBY, Professor--Georgetown University

BEHZAD T. DIBA, Professor--Georgetown University

Commentary

ALAN S. BLINDER, Professor--Princeton University

SEBASTIAN EDWARDS, Professor--UCLA

Overview Panel

DAVID A. DODGE, Governor--Bank of Canada

JACOB A. FRENKEL, Chairman--Merrill Lynch International

FREDERIC S. MISHKIN, Professor--Columbia University