Long experience, in the United States and in other advanced economies, has demonstrated that monetary policy is most successful when decisions are rendered independent of influence by elected officials.
Jerome PowellRead
Long-term economic growth depends mainly on nonmonetary factors such as population growth and workforce participation, the skills and aptitudes of our workforce, the tools at their disposal, and the pace of technological advance. Fiscal and regulatory policies can have important effects on these factors.
Interpretation
What this quote means
Long-term economic growth is influenced more by factors like workforce quality and technology than by monetary policies.
Jerome Powell's quote emphasizes that sustainable economic growth relies on fundamental elements beyond just financial policies. Factors such as workforce skills, population dynamics, technological progress, and the tools available to workers play significant roles. While fiscal and regulatory measures are important, nurturing these nonmonetary aspects is crucial for building a robust economy over time.
Themes
Economic GrowthWorkforceTechnologySkillsPopulationNonmonetary Factors
In practice
Example use cases
In a policy meeting discussing economic strategies, one might say, 'As Jerome Powell notes, long-term economic growth relies on strengthening our workforce and investing in technology.'
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There is no risk-free path for monetary policy.
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My own experience is that the best outcomes are reached when opposing viewpoints are clearly and strongly presented before decisions are made.
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