April 2, 2014

Robert E. Lucas Jr., Nobel Laureate and John Dewey Distinguished Service Professor of Economics at the University of Chicago, presents "Liquidity: Meaning, Measurement, Management."

In the first portion of his presentation, Lucas discusses how the two main goals of the Fed—controlling inflation and supporting financial stability—can be directly influenced by the Fed. The actions of the Federal Reserve, he says, affect the liquidity of the economy, and, in particular, its long-run rate of inflation and the stability of the financial system. Lucas goes on to explain inflation and the quantity theory of money by providing a scenario in which every payment in an economy is made in cash.

Full text of President Bullard's remarks.

Read the article in the Federal Reserve Bank of St. Louis Review: Liquidity: Meaning, Measurement, Management.

The Homer Jones Memorial Lecture Series honors those who exemplify the highest qualities of leadership in economics and public policy. As research director, and later as senior vice president at the St. Louis Fed, Homer Jones (1906-1986) played a major role in developing the Bank as a leader in monetary research and statistics.

For more information about the Homer Jones Memorial Lecture Series, please visit research.stlouisfed.org/conferences/homer/.

The Homer Jones Memorial Lecture Series is sponsored by: