Summary: Edward C. Prescott discusses the advantages and disadvantages of economic integration among sovereign states with respect to economic growth, involving more generally an analysis of globalization. Professor Prescott is a senior monetary advisor at the Federal Reserve Bank of Minneapolis and is a major figure in macroeconomics, especially the theories of business cycles and general equilibrium. In his "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," published in 1977 with Finn E. Kydland, he analyzed whether central banks should have strict numerical targets or be allowed to use their discretion in setting monetary policy. He also is well known for his work on the Hodrick-Prescott Filter, used to smooth fluctuations in a time series. Recorded March 2, 2009.
