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Opening Remarks: St. Louis Fed Fall Conference
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October 9, 2014
President James Bullard delivered opening remarks at the
39th annual Federal Reserve Bank of St. Louis fall
conference, sponsored by the Research Division. During his
remarks, he stressed the need to understand both how
fundamental mechanisms in the economy operate and
how current data can be interpreted in terms of
fundamental theory. He noted that the St. Louis Fed has
long been a leader in supporting research at the
intersection of economic theory and economic policy.
Remarks (pdf)
Full text of remarks:
Opening remarks by James Bullard, President and CEO
39th Annual Federal Reserve Bank of St. Louis Fall
Conference
Federal Reserve Bank of St. Louis
Oct. 9-10, 2014

James Bullard
President and Chief
Executive O cer
Bio
Curriculum Vitae
Staff Contacts
IDEAS/RePEc Pro le

It is my pleasure to welcome you to the St. Louis Fed 2014
Fall Conference. This is the 39th year for this conference. I
want to thank Bill Dupor and Yongseok Shin for putting this
very provocative program together. I am looking forward to
the stimulating discussion these papers are sure to inspire
over the next day and a half.

At the St. Louis Fed, we have long tried to provide
perspectives on whether the policies adopted in the past
still serve us well today and whether recent developments
at the frontier of research can be fruitfully applied to
improve policy. This agenda has become especially
important in the past few years, as the Fed and central
banks around the world have struggled to devise
appropriate policy responses to the current
macroeconomic situation.

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"Rationally, let it be said in a
whisper, experience is certainly
worth more than theory."
Amerigo Vespucci

In polite economist society, there has long been a
distinction between what is known as "frontier" research
and what is sometimes called "policy" research. In my view,
this has been and continues to be a false dichotomy. There
is no such distinction: "Policy" and "frontier" research are
two sides of the same coin. We need to understand both
how fundamental mechanisms in the economy operate as
well as how current data can be interpreted in terms of
fundamental theory.

In short, advanced economic theory has to be made more
relevant for actual policy, and actual policy has to
understand and embrace the sometimes di cult ideas
advanced in the theoretical world. The Federal Reserve
Bank of St. Louis has long been a leader in supporting
research at the intersection of economic theory and
economic policy.

We are fortunate this year to have an outstanding group of
speakers whose research expands our understanding of
key contemporary issues in macroeconomics.

This year's agenda includes papers on a host of
macroeconomic topics, including:
A paper on new ways to measure product market
frictions and the role these distortions play in
explaining the so-called "labor wedge;" and
A paper on using disaggregated data to assess the
ability of demand stimulus to increase in ation.
We will hear about research on labor markets and
education, including:
A paper concerning the Affordable Care Act's likely
effect on household incentives and work-schedule
decisions;
Work on changes in U.S. job-to-job ow patterns
following the Great Recession and the associated
implications for unemployment;
A paper on how nancial shocks have diminished the
ability of labor markets to match idle labor with
vacancies; and
Research on the impact of state-level higher
education subsidies on the education and migration
decisions of young people.
We also have a set of papers concerning banking
regulation issues, including:
A paper examining circumstances under which
mandatory disclosure requirements on banks may be
bene cial;
Work looking at banking sector regulatory reforms
that can promote competition and lead to greater
voluntary transparency; and

Research on whether it is ever bene cial to require
banks to hold more than their otherwise-preferred
level of government bonds.
I know that these papers and the ideas they contain will
contribute importantly to the macroeconomic discussion in
the coming years as the papers are eventually published
and the results become more widely known in the
profession. The St. Louis Fed is proud to provide this forum
for discussion and analysis of the leading issues of the
day.

Let me again welcome all of you to the St. Louis Fed 2014
Fall Conference. Thanks very much for coming, and now
let's get to work!

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