Richard Fischer, President of Dallas Fed, spoke on Monetary Policymaking in Globalized World . This is his second speech on globalization and monetary policy this year, previous one was in January on Coping with Globalization Impact on Monetary Policy, and he spoke also two times on globalization in the US and Latin American context. Having spoken myself on globalization several times this year (see speeches and lectures on my blog) I feel well in a very good company.
Let me draw your attention to one comment Fischer made in a speech today:
“….simply that the committee’s wisdom would be enhanced, and the economy would benefit, from having analytical tools to help us build more practicable models than what we currently have to guide our thinking as we make monetary policy in a complicated, reconfigured, globalized world. Today I appeal to you and your firms to help us develop these analytical tools either directly or by demanding them in the marketplace, where you wield considerable influence…”.
This is yet another call from a central banker raising an issue of whether single country models, or single country data are suffcient to understand complex dynamics of XXI century global economy. You may look at ECB website for a selection of papers related to global economy data issues.