rick davis and david goodfriend will be sticking with us. now it is time to get a check on the markets. abigail doolittle is checking the markets. normally we say what is going on that might affected. impeachment is not but maybe the coronovirus? abigial: you are right. not much from the impeachment but from that fire is in china we have a bit of a risk off tone. less so than earlier. if you take a look at the s&p 500, just a fractional decline. that is what we are seeing for the small-cap russell 2000. that is a growth your index. we also have the transport down significantly. all of this is a macro uncertainty. if the virus were to progress to a worst-case scenario, it could certainly affect the profit outlook for u.s. stocks that is why we are seeing a decline for anything related to travel and tourism. that was certainly true in the asian session. the shanghai composite had its worst day in two months. anything related to china is lower on the day. wynn resorts received 75% of the revenue from a cow. united airlines -- from macau. invest

goodfriend, his criticism of professor goodfriend's work is that people of you are in the ethereal ofnomics, talking to chairman powell and the rest of us are out here with negative interest rates. it does not work. his chairman powell aware that in 2020, there is almost a social need to normalize rates back to be -- the incentives that we knew? abby: i have great confidence in chairman powell and did team that he has -- the team that he has. i think they see the pragmatic aspects of what is happening right now and i think they would like nothing more than to be and an environment where we have tol interest rates returned positive levels. it is something they know how to use as a policy lever. there in a very awkward position right now in terms of having very limited policy tools. tom: this goes back to work in academics with some very high-level mathematics. abby joseph ghosn, folks, can do the math. cohen, folks, can do the math. to remove out of this with drift functions and such or do you like jump this at conditions and discontinuous moments? abby: i'm going to change the questio

jackson hole paper and professor goodfriend's work and people like you are in the if there a world ofonomics talking with chairman powell and the rest of us are out there is negative interest rates. it doesn't work. is chairman powell aware that into 2020, there is a must a social need to normalize rates, back to the incentives that we knew? abby: i have great confidence in chairman powell and also the team he has. not just members of the board, but also the staff members. and i think they see the pragmatic aspects of what is happening now. i think they would like nothing more than to be in an environment where we have real interest rates return to positive levels, because it is something than that they know how to use as a policy labor. they are in a very awkward position now. a policyolicy -- as levefr. tom: this goes back to come located mathematics, i don't know if it is differential equations, but abby joseph cohen can do the math. do we escape with smooth controllable stable curves and functions or do you look at 2020 or 2025 as jumps and discontinuous moments? abby: i'm going t

tom: one of our losses in economics this year is marvin goodfriend of carnegie mellon with his importantackson hole paper and precisely this work is people like you are the ethereal of economics talking with chairman powell and the rest of us are out there is negative interest rates. it doesn't work. is chairman powell aware that ended 2020, there is almost a social need to normalize rates, back to the incentives that we knew? abby: i have great confidence in chairman powell and also the team he has. not just members of the board, but also the staff members. and i think they see the pragmatic aspects of what is happening now. i think they would like nothing more than to be in an environment where we have real interest rates return to positive levels because it is something that they know how to use as a policy lever. they are in a very awkward position right now in terms of having very limited policy tools. tom: this goes back to some of you work in academics with some high-level mathematics, i don't know if it is differential equations, but abby joseph cohen can do the math. do we escap

my name is andre goodfriend, a serving foreign service officer in the mask us. looking at the role of diplomats, a lot of what is not reported is when things go right, the quieter places when we are not engaged in reacting to violence or in a crisis but through our work preventing crisis but that often doesn't get reported as much because things are normal. how do you see the role of the press in creating the environment where the work of preventing crises is more valued, the role of routine diplomacy might be more valued rather than the sensational aspect of reacting to crises. >> there are ways to write about things going right but it is the nature of the beast that the press is going to report when there is news, when there's action that is not regular. so i don't know if there's any way around that. >> part of it is expectations, news coverage and airplanes are not supposed to crash and when they do that makes news but you touched on this, access, relationship building with the media is important because you do have a situation where it is a rather complicat

tom: we do this in honor of marvin goodfriend at carnegie mellon, writing at jackson hole on the amplituderates. have we tested the theoretical amplitude of where they become efficacious, or are we miles away from that? jeremy: i am not sure we are miles away from it, but we are increasing the debate about the efficacy of negative rates. that is a theme that has been building in the last few weeks and months and that has been amplified by the transition of the leadership of the ecb. the structural and strategic review the ecb will be conducting in terms of monetary policy, because we have not seen a strategic review for two decades. we are discussing and realizing the efficacy of that negative rate scenario, and i think we are getting to that tipping point where there is the realization that taking rates negative further is counterproductive. that is something we have seen in terms of the germanic countries who have been saving because of the fear of rates going more negative. nejra: is that cognizance and concern about the reversal rate what is driving your optimism on the euro, or is it