As the U.S. housing and financial markets crisis began to unfold in mid-2007, Federal Reserve Bank of Richmond President Jeffrey Lacker was on the front lines, as economists and policymakers debated how to best control inflation and stabilize the American economy.
As the debate intensified over the next two years, the Federal Reserve responded aggressively, recalled Lacker, a Franklin & Marshall College alumnus. During a talk titled "Economics and the Federal Reserve After the Financial Crisis," Tuesday, Feb. 12, at F&M, Lacker will discuss "the ways in which economic reasoning influenced policymakers' views on financial market functioning during the crisis."
"Competing policy perspectives often derived from insights developed in formal academic work in economics," said Lacker, who was a participant in many of those deliberations as the head of one of the 12 regional arms of the nation's central bank. "Distinct models of financial market behavior provided sharply different guidance regarding the appropriate policy response."
Lacker's lecture will begin at 7:30 p.m. at the Barshinger Center for the Musical Arts. It is free and open to the public.
Antonio Callari, chair of F&M's Department of Economics -- which is sponsoring the event with the Wayne K. Van Dyck Fund -- said Lacker "is a stellar exemplar of the use of economic theory for public policy, for public service."
"We are proud of the role that the F&M economics department must have played in his formation as a noteworthy embodiment of the power of ideas, and we want our students to be inspired by his use of economics in this way," Callari said.
Lacker is the author of numerous articles in professional journals on monetary, financial, and payment economics, and has presented his work at several universities and central banks.
He received his bachelor's degree in economics from Franklin & Marshall in 1977 and his Ph.D. from the University of Wisconsin in 1984. He has served as the seventh chief executive of the Fifth District Federal Reserve Bank, in Richmond, Va., since August 2004.