Fed Analysis.

Publication: Finance Wire

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Original Source: CNBC/DOW JONES BUSINESS VIDEO ANALYST INTERVIEW

LIZ CLAMAN, CNBC ANCHOR: As we pointed out in the last hour, in case you missed it, we`ll remind you. There was this article written five years ago. Ben Bernanke helped co-write an op-ed piece in The Wall Street Journal entitled, "What Happens When Greenspan is Gone?" In it, Bernanke and his co-authors argued for a framework known as inflation targeting, fighting inflation while stressing the importance of communication and transparency by the Fed. Is this, in fact, the best framework for a Federal Reserve run by Ben Bernanke? Joining us now to discuss the future of the Fed, Mickey Levy, chief economist with Bank of America and John Ryding, chief U.S. Economist with Bear Stearns. Two superstars economists, I`m thrilled to have you both here. How would that transparency take form under Ben Bernanke? Can you venture to guess? Mickey, you take it first?

MICKEY LEVY, CHIEF ECONOMIST, BANK OF AMERICA: Yes, sure. When Bernanke and others who favor inflation targeting advocate targeting, they`re not talking about a strict target that that`s...

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