Early Childhood Development and Economic Growth

Early childhood development may seem like an odd topic for a Federal Reserve Bank president.1 The public policy responsibility for which the Fed is best known is the nation’s monetary policy – a macroeconomic subject that would seem to stand in sharp contrast to the more microeconomic focus of Governor Kaine’s summit today. But as a regional Reserve Bank in a federated central banking system like the Fed, we spend a good deal of time trying to understand the economies that make up our District, which, as you may know, includes Maryland, Washington, D.C., Virginia, West Virginia and the Carolinas. We supplement formal data on the national economy with information we gather from numerous sources – both formal and informal – about economic conditions in our region. This process gives us an opportunity to observe and learn about the economic trends and challenges facing the people of our District. It also allows us to observe the range of public policies and private initiatives undertaken across the District aimed at promoting local and regional economic growth.