Remarks for the Panel: “Transparency and Communications” 03.06.20; The Shadow Open Market Committee Conference, Current Monetary Policy: The Influence of Marvin Goodfriend, New York, NY

Our session discusses the contributions Marvin made to our understanding of the role of transparency and communication in monetary policymaking. I will frame my remarks around the two things Marvin indicated in his confirmation hearing statement that he would pursue if confirmed. First, Marvin planned to draw on his “academic and professional experience to promote policies that would further increase transparency and accountability at the Federal Reserve.”1 This is a worthy pursuit. Congress has given the Fed a mandate to promote price stability and maximum employment, and it has given the Fed independence in making monetary policy decisions in pursuit of those goals. This independence has been shown to yield better economic outcomes. But a central bank cannot expect to remain independent from the political process unless it is held accountable for its policy decisions and is transparent about the basis for these decisions.