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The Downside of the Fed’s Increasingly Complicated Expectations Game

Harvard Business Review

Still, even Eichengreen thought the policy shift was too inconsequential to justify the market reaction. But in Martin’s day, the Federal Open Market Committee was able to make its monetary policy decisions in relative obscurity. Financial markets on the whole played a much smaller role in the economy.

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What Alan Greenspan Has Learned Since 2008

Harvard Business Review

Not long after Alan Greenspan stepped down as Federal Reserve chairman in 2006, global financial markets began to unravel. I had an idea of constructing a certain statistical procedure. Greenspan was never a hardline believer in the rationality of financial markets. It’s true of all commodity markets.