Monday, 16 October 2017


Dr. Klein on the Fed

Posted by
May 10, 2012
in Blog


[Testimony before US House Committee on Financial Services Domestic Monetary Policy and Technology Subcommittee, May 8, 2012]

I specialize in the economic theory of organizations — their nature, emergence, boundaries, internal structure, and governance — a field that is increasingly important in economics and was recognized with the 2009 Nobel Prize awarded to Oliver Williamson and Elinor Ostrom. (Ronald Coase, founder of the field, is also a Nobel laureate.) Much of my recent research concerns the economics of entrepreneurship and the entrepreneurial character of organizations, both private and public. Like business firms, public organizations such as legislatures, courts, government agencies, public universities, and government-sponsored enterprises seek to achieve particular objectives, and may innovate to achieve those objectives more efficiently.[1] Public organizations, like their for-profit counterparts, may act entrepreneurially: They are alert to perceived opportunities for gain, private or social, pecuniary or not. They control productive resources, both public and private, and must exercise judgment in deploying these resources in particular combinations under conditions of uncertainty. Of course, there are important distinctions between private and public organizations — objectives may be complex and ambiguous, performance is difficult to measure, and some resources are acquired by coercion, not consent…

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