i expected to build on the monetary policy framework that i inherited from paul volker and alan greenspan. they solidified the feds commitment to low and stable inflation as foundations of our economic stability, and they gradually increased transparency. for example, chairman volker introduced a money targeting framework to help guard the fed's attack on high inflation in the early 1980's. and the practice of issuing a statement after each meeting began under chairman greenspan. i believed that a more transparent approach would make policy more effective and further strengthen the fed's institutional credibility. in particular, as an academic i had written about the approach used by the bank of england and other central banks. by making public some simple information about policy goals and strategies for economic forecasts, the central tanks -- banks provided the economic framework to help the public and participants understand and anticipate policy actions. the provision of the goals and policy plans also helped to make the central banks more accountable for achieving their stated objec

on the other hand your film has a lot of praise for paul volker. he was named to the fed chairmanship by jimmy carter. what do you think he did that we can learn from? >> you know i think lesson we try ohold up volker as a lesson what you look for as a central banker, or any leader in a society. someone who is willing to do things that might hurt in the short term but have long term benefits. the fed has political independence. they're not elected officials. they're very much protected i think in a lot of ways from pressure, from explicit pressure from politician he. but the question is how does the fed use that influence? volker did something raised interest rates up very high, up to 20%, hard to imagine, 20% interest rates today. but what it did in the long run was, you know set the stage for a very healthy period for the u.s. economy. restore faith in the u.s. dollar, bring inflation down help, you know, lower the cost of living for americans. so it was a great thing. in the short run it caused a recession, it was very painful but in the long ru