Balancing Price Stability and Financial Market Stability

Gadi Barlevy discusses recent research on the potential tension between the Fed's roles in maintaining low, stable prices and providing liquidity when financial markets are in trouble. Barlevy is a senior economist and economic advisor at the Federal Reserve Bank of Chicago. He was interviewed on Feb. 8, 2023, before the spate of bank failures that occurred in March 2023. Full transcript and related links: https://www.richmondfed.org/podcasts/speaking_of_the_economy/2023/speaking_2023_04_05_financial_price_stability