Bullard Says Economists Must Close Gap Between Policy, Theory

Oct. 20 (Bloomberg) -- Federal Reserve Bank of St. Louis President James Bullard urged economists to bridge the gap between research on theoretical and policy issues.

“Advanced economic theory has to be made more relevant for actual policy, and actual policy has to understand and embrace the difficult ideas advanced in the theoretical world,” Bullard said today at a conference at the bank. The St. Louis Fed “has long been a leader in supporting basic research at the intersection of economic theory and economic policy.”

Bullard didn’t discuss the economy or monetary policy in his prepared remarks. He yesterday said monetary policy was “appropriately easy” and the U.S. is likely to avoid a second recession following the decline that ended two years ago.

To contact the reporter on this story: Steve Matthews in Atlanta at smatthews@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net