Innovation is the key to long-term economic growth. But as the United States continues its slow recovery from the deepest recession since the Great Depression, restoring the country's "innovation economy" has taken on new urgency. The cover story in the latest issue of Region Focus examines how much economists know about what spurs innovation, as well as how policymakers might use that information to boost jobs and GDP. And in his column Richmond Fed President Jeffrey Lacker argues that we should be cautious about attempting to limit financial innovation.
Also in this issue:
• Interview with John B. Taylor on recent Fed policy, fiscal stimulus, and the future of macroeconomics
Region Focus is the economics magazine of the Federal Reserve Bank of Richmond. It covers economic issues affecting the Fifth Federal Reserve District (the District of Columbia, Maryland, North Carolina, South Carolina, Virginia, and most of West Virginia) and the nation.
For free copies of Region Focus, contact the Bank's Research Publications division at (800) 322-0565. The articles are available online at http://www.richmondfed.org/publications.
The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.