Every effort needs to be made to try and offset the costs of Katrina and Rita by reductions in other government programs, especially those that are wasteful, duplicative and ineffective.

The benefit of appointing a hawkish central banker is the increased inflation-fighting credibility that such an appointment brings.

The risk exists that, with aggregate demand exhibiting considerable momentum, output could overshoot its sustainable path, leading ultimately in the absence of countervailing monetary policy action to further upward pressure on inflation.

The amount of currency in circulation is not changing. The money supply is not changing in any significant way.

Not all information is beneficial.

Both humanity's capacity to innovate and the incentives to innovate are greater today than at any other time in history.

I and others were mistaken early on in saying that the subprime crisis would be contained. The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict.