As Arthur Cecil Pigou (18771959) put it: “The social enthusiasm which revolts from the sordidness of mean streets and the joylessness of withered lives … is the beginning of economic science.” One may have chosen economics to find out how to become wealthy. Woody Allen said: “Economics is the study of money and why it is good.” Or one may have chosen economics to find out how society functions. Economics certainly offers a good starting point for this endeavour. Let me quote Alfred Marshall (1842-1924): “Economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of wellbeing.” Or one may have chosen economics because it is so hopelessly difficult and therefore enormously attractive to, and here I quote Robert Solow, “the overeducated in pursuit of the unknowable”. In the process of studying economics, every student sooner or later will have to decide whether do drop out or to continue. Most of the students opt for the practical application of what they have learned and quit university after their final exams. Some, however, will opt to stay on. In practice, this means to teach, to do research and increasingly to administrate since the universities have become large and slow-moving institutions. Let’s forget the latter and talk about the former. In teaching and in research lies most of the professional fulfilment of a university economist.
I just came back from a trip to Puerto Rico and the U.S. Virgin Islands, which are part of the New York Fed’s district. The overwhelming feedback I received from community leaders there was how useful they found our research reports for thinking about how to strengthen their local economy. An example closer to home is the work we do looking at the credit behavior of households at the zip code level. Analysis from the New York Fed is used by Financial Empowerment Centers across New York City to support people on low and middle incomes get out of financial trouble and build a credit profile. It also acts as a barometer for the success of programs, which helps practitioners learn which interventions are most effective. 2/4  BIS central bankers' speeches  Convene As well as connecting people with research and data, we play an important role creating spaces where different stakeholders convene, discuss the challenges and opportunities facing their communities, and share best practices. This is where our workforce development program comes in, and it’s an area where Federal Reserve Banks from across the country have been collaborating to share knowledge among key stakeholders. The work we’re doing bringing together schools and local employers is also in this vein. We owe it to young people to ensure that their investments in education pay off and that there’s a job at the end of all their hard work and study.