If you're walking down the right path and you're willing to keep walking, eventually you'll make progress View More
The title of his speech is revealing: Nomonetary Problems: Diagnosing and Treating the Slow Recovery, where he says:
I must acknowledge up front that most of the policy prescriptions I will identify are outside the scope of monetary policy. Monetary policy is largely doing what it can to support a robust recovery, and what remains are fiscal and regulatory policies. If we are able to apply our research expertise to identify potential solutions, I believe it is appropriate to do so and then leave it to other branches of government to decide whether or not to pursue them
If, as he says “I joined the Federal Reserve because I want to help tackle the most important economic policy challenges we face as a country”, he´s wasting his time at the Fed!
The view of central bankers that the problems they face are “nonmonetary” is prevalent. Just to give one example (among many):
Throughout the “Great Inflation” Arthur Burns argued that inflation was a nonmonetary phenomenon (Unions, Oligopolies, Oil Producers, etc.).
Now, the view remains the same “throughout the “Great Stagnation”!