Fed Policy Is Very Volatile, Former IMF Economist Obstfeld Says

The transcript discusses the challenges central bankers face due to trade wars and the unpredictability of economic policies. It highlights the global impact of US monetary policy, particularly the dominance of the dollar and its effects on emerging markets. The discussion also covers the Fed's policy considerations, including the need to account for global effects and the impact of trade tensions on emerging markets. The importance of modeling global effects in the Fed's policy decisions is emphasized.

What challenges do central bankers face when making policy decisions in the context of trade wars?

How does the dominance of the US dollar affect the actions of the Federal Reserve?

In what ways can the Federal Reserve's policies impact emerging markets?

How might the Federal Reserve's response to trade tensions differ from a one-off situation?

What is the significance of modeling the global economy for the Federal Reserve's decision-making process?