Donald Kohn

Brookings Institution
1775 Massachusetts Avenue NW
Washington, DC 20036
Tel: 202-797-6121

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Institutional Affiliation: Brookings Institution

NBER Working Papers and Publications

December 2013Financial Statistics for the United States and the Crisis: What Did They Get Right, What Did They Miss, and How Could They Change?
with Matthew J. Eichner, Michael G. Palumbo
in Measuring Wealth and Financial Intermediation and Their Links to the Real Economy, Charles R. Hulten and Marshall B. Reinsdorf, editors
Although the instruments and transactions most closely associated with the recent financial crisis were novel, the underlying themes of the crisis were familiar from previous episodes: Competitive dynamics resulted in excessive leverage and risk-taking by large, interconnected firms, heavy reliance on short-term sources of funding to finance long-term and ultimately illiquid positions, and common exposures being shared by many major financial institutions. After the crisis, financial supervisors and policymakers want better and earlier indications regarding these critical and recurring core vulnerabilities in the financial system. In a sense, gaps in data and analysis defined the shadows in which the "shadow banking system" associated with increasing financial risks grew. We agree more ...
June 2013Panel Session II remarks: Lessons from History
in The Great Inflation: The Rebirth of Modern Central Banking, Michael D. Bordo and Athanasios Orphanides, editors
This chapter presents remarks by Federal Reserve Vice Chairman Donald Kohn, who discusses lessons for central banks after experiences such as the Great Inflation. First, price stability is an important long-run objective, and second, inflationary expectations are important for the control of inflation. The third lesson is the importance of vigorous debate inside central banks as well as the input by outside experts to safeguard against serious policy errors. In addition, once inflation becomes embedded in inflationary expectations, to avoid high economic and social costs, central bankers should go to great lengths to diffuse them. Finally, Kohn suggests that central banks should be humble about what they know.
September 2008Panel Remarks: Donald L. Kohn
in Asset Prices and Monetary Policy, John Y. Campbell, editor
June 2007Panel Remarks
in International Dimensions of Monetary Policy , Jordi GalĂ­ and Mark J. Gertler, editors
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