Yellen on Fiscal Support, Fed Independence and China

The video discusses the importance of fiscal and monetary policy, emphasizing the need for central bank independence amidst deregulation trends. It highlights the potential benefits of well-designed tax reforms on productivity, while stressing the importance of detailed policy design. The video also addresses climate change, advocating for efficient carbon pricing at the source of emissions. Finally, it examines trade relations, particularly between the United States and China, and the impact of tariffs and currency appreciation on competitiveness.

Why is it important for central banks to maintain independence?

• To promote deregulation

• To ensure unbiased monetary policy decisions

• To reduce the need for fiscal policies

• To increase government control over the economy

What is a potential benefit of appropriately designed tax reform?

• Increased government spending

• Higher inflation rates

• Reduced carbon emissions

• Improved productivity

What is suggested as an efficient way to price carbon?

• Implementing a cap-and-trade system

• Subsidizing renewable energy

• Levying a tax at the source of carbon emissions

• Increasing tariffs on imported goods

How might tariffs affect the competitiveness of goods?

• They always make goods less competitive

• They make goods more competitive, but currency appreciation can offset this

• They have no impact on competitiveness

• They only affect domestic goods

What is a current issue in the trade relations between the United States and China?

• Imbalance in trade relations

• Lack of trade agreements

• Excessive tariffs on European goods

• Currency manipulation