Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

Well, I think there’s something to it. There is the view that people, particularly higher-income people, place a high value on their time. If you don’t want to be caught in Washington, D.C., traffic, say, you might decide to sell your house in the suburbs and move into the city and in the process drive up land prices in D.C., which happens to be one of the metro areas with the highest rate of price increase.

I’m not a regional specialist, but I know there are people at our Bank who are working on this issue of agglomeration benefits. And I think their conclusion is that there are a lot of reasons, particularly labor market associated reasons, why there may be more agglomeration benefits now than previously. That is exactly the opposite conclusion a lot of people thought would be the case as we move to more telecommuting and that sort of thing.

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