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Martin Feldstein

We are particularly poor at the open economy issues.

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Domestic inflation reflects domestic monetary policy.

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My theme this evening is that America needs a competitive dollar.

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The more competitive value of the dollar turned around the trade deficit.

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First, I think the science of monetary economics has clearly gotten better.

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A second reason why science cannot replace judgement is the behavior of financial markets.

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Inflation is lower and more stable and the real business cycle fluctuations are more modest.

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I think that over the last few decades, we have seen better economic outcomes than in the past.

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The only way that we can reduce our financial dependence on the inflow of funds from the rest of the world is to reduce our trade deficit.

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And finally, no matter how good the science gets, there are problems that inevitably depend on judgement, on art, on a feel for financial markets.

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