But it doesn’t serve a purpose if the public discussion of monetary policy starts with the instruments. The instruments are the tail that wags the dog.” On the economy: “What we’ve seen lately is a series of positive economic data which are broadly consistent with the ECB staff forecast.
Although I applaud these moves toward enhanced disclosure and increased transparency, I have concerns similar to those expressed earlier about the difficulties of rules-based accounting. In particular, the relationship between mutual funds and brokers has become extraordinarily complex and lucrative. Further, as financial innovation continues, conflicts of interest will continue to arise.