Rick Rieder and Russ Brownback highlight their view that effective monetary and fiscal policy in the 21st century needs to draw not only traditional economic theory, but also from the lessons of finance and other disciplines.
We think the evidence is mounting that the global financial economy has overtaken the global real economy, both in size and in influence. Yet, economic policy is struggling to evolve in ways that incorporate more of the traditional theories and insights that are embedded in the study of finance. Thus, to more adequately grasp the economic realities we are