30 years later, Fed calls for closely tracking financial innovation

Thirty years ago, as a Research Assistant at the Federal Reserve, your humble blogger started an effort to track financial innovation and its impact on monetary policy and the economy.

The individuals in charge of the monetary policy that ended the threat of inflation went to great lengths to explain why this effort was unnecessary. (As regular readers could guess, I was persistent about pushing my ideas back then too.)

I knew my efforts were going to have no impact when it was explained to me that 'financial innovation was a tail that was not going to wag the monetary dog'.

Yesterday, courtesy of Chairman Bernanke's speech, I declared victory as he

called for close tracking of financial innovation.

So the question becomes, 'how long will it take before the Fed adopts my blueprint for saving the financial system and ultra transparency?'