OECD's William White: Monetary Policy Has Failed and Economists Are Making a "Profound Ontological Error"

In a special edition of the Big Picture, we are airing an FS Insider interview with William White, chairman of the Economic and Development Review Committee of the OECD and former chief economist at the Bank for International Settlements (BIS). Mr. White says the risks posed by global debt levels are greater today than they were in 2007 and that central banking monetary policy has lost its effectiveness. He also explains the crucial differences between modern macroeconomic modeling and complexity theory (or viewing the economy as a complex adaptive system) and the key lessons this has for policymakers, both fiscal and monetary.

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