My focus is on how globalization has affected the conduct of U.S. monetary policy. I begin by documenting the trend toward increased openness of the U.S. economy. With that background in place, I turn to the implications of increased openness for the conduct of U.S. monetary policy. The views I present here about the conduct of monetary policy are my own.
They should not be interpreted as official policy positions of the Board of Governors or the FOMC. Some of the questions that I address along the way are: Does an open economy introduce either new objectives or new instruments for monetary policy? How does an open economy affect the monetary policy transmission mechanism?