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

My question actually relates to this last discussion. I want to ask about the alternative simulation on the international side—the 30 percent decline in the real value of the broad dollar index. When I saw the results, I was a little surprised that they weren’t more serious in that 30 percent depreciation scenario. But then I saw the sentence you had there indicating that the shock did not incorporate any of the potential impact on the U.S. economy through the confidence of business or consumers or through higher risk premiums on private domestic asset prices. So I was wondering if you could give us the benefit of your thinking on that as to what magnitudes we should expect here.

Keyboard shortcuts

j previous speech k next speech