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As Financial Markets Continue To Broaden And Deepen, The Behavior Of Asset Prices Will Play An Important Role In The Formulation Of Monetary Policy Going Forward, Perhaps A More Important Role Than In The Past.

Monetary Policy Itself Cannot Sensibly Be Directed At Reducing Imbalances.

If You Don't Try To Generate More Revenues Through Tax Reform, If You Don't Ask, You Know, The Most Fortunate Americans To Bear A Slightly Larger Burden Of The Privilege Of Being An American, Then You Have To - The Only Way To Achieve Fiscal Sustainability Is Through Unacceptably Deep Cuts In Benefits For Middle Class Seniors, Or Unacceptably Deep Cuts In National Security.

The Major Economic Policy Challenges Facing The Nation Today - Pick Your Favorites Among The Usual Suspects Of Low Public And Household Savings, Concerns About Educational Quality And Achievement, High And Rising Income Inequality, The Large Imbalances Between Our Social Insurance Commitments And Resources - Are Not About Monetary Policy.

Looking Past The Immediate Crisis, A More Resilient System Must Be Built On Stronger And Better Designed Shock Absorbers, Both In The Major Institutions And In The Infrastructure Of The Financial System.