On April 4th, Richard Fisher, chairman of the Federal Reserve Bank of Dallas, was invited to the Tsinghua University PBC School of Finance to discuss the goals and limitations of monetary policy on the Tsinghua University’s “Top Talk” program. He interacted with Tsinghua students and faculty, providing an unforgettable opportunity to discuss critical financial issues.

 

With Professor Zhou Hao leading the interview, Fisher began by reviewing American monetary policy following the stock market crash before giving the students a detailed overview of the pros and cons of current U.S. monetary policy. Fisher emphasized the importance of non-traditional monetary policy in revitalizing the U.S. economy. He pointed out that although non-traditional policy does not affect interest rates in the short term, in the long term they will be increasingly effective in stimulating the U.S. economy.

 

Though non-traditional monetary policy will prove to be a vital part of the U.S. economic recovery, they will also create some new problems. Fisher pointed out that despite the massive amount of reserve funds released by the Federal Reserve, as of now they have not done much to stimulate significant investment.

 

From 1997 to 2010, Fisher served as Deputy U.S. Trade Representative, where he played a vital role in negotiating China’s acceptance into the World Trade Organization. He assumed his current position in 2005.

 

Edited by Steven Salenik