Masters in Business

A Medal for Helping Keep the U.S. Running

Richard Clarida started his job at the U.S. Treasury on Sept. 11, when the country was still struggling with the dot-com bust.

What do you do after you win the U.S. Treasury Medal for Distinguished Service? For Columbia University professor of economics and international affairs Richard Clarida, the answer was to become global strategic adviser for Pacific Investment Management Co.  The former assistant secretary of the Treasury for economic policy under George W. Bush won the rarely bestowed honor for his work during the period after the dot-com bust and the Sept. 11 terrorist attacks, which occurred on Clarida's his first day on the job at Treasury.

In this week's Masters in Business podcast, Clarida discusses how the Federal Reserve was successful in unfreezing credit markets during the financial crisis. He observes, however, that it overextended its emergency settings for several years past when necessary. This has had the result of distorting financial markets. The Fed, in his opinion, remained too accommodative and for too long. What we have taken to calling “normalization," or reducing monetary stimulus, is a process that is long overdue.

All of the books he cited can be found here.

You can stream/download the full conversation, including the podcast extras, on iTunes, SoundCloud, Overcast and Bloomberg. Our earlier podcasts can all be found on iTunesSoundCloudOvercast and Bloomberg.

Next week, we chat with Matt Wallaert, a behavioral psychologist and entrepreneur who was a director at Microsoft Ventures.

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

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