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Taking the Textbook Approach

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Tuesday, February 16th, 2010

Australian Financial Review Report:

Stanley Fischer wrote the book on economics. His textbook, Macroeconomics, educated the past generation of economists. He supervised the PhD thesis of Fed Governor Ben Bernanke at MIT.
So you would think Fischer would be a little ashamed of his profession in the wake of the Global Financial Crisis. Has he fundamentally questions any of his ideas given the total failure to pick the coming crisis by so many eminent economists, including his former student Bernanke? Is he planning to re-write the book?
No.
“I don’t find myself having an existential crisis.” He says. “I think its actually a victory for the textbooks.”
Fischer was in Australia last week along with other top central bankers in his current role as Governor of the Bank of Israel to take part in a Reserve Bank of Australia symposium on the last 50 years of monetary policy.

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