Finally, central banking explainedThe US Federal Reserve and other central banks have been in the headlines recently. First there were the various expansions of power that allowed the Fed a greater role in the economy and then there was yesterday's coordinated interest rate cut by 6 of the world's central banks, including the Fed and the Bank of Canada. A month ago few Canadians knew who Federal Reserve chairman Ben Bernanke was, now they've seen him testifying before Congress clamoring for a bailout, but they still may be unsure exactly what he does. Here Australia's answer to Jon Stewart, Shaun Micallef interviewing the Reserve Bank of Australia's Tony Froth (remember then Fed Chair Alan Greenspan's July 2005 comment that "the apparent froth in the housing markets appears to have interacted with evolving practices in mortgage markets") trying to get to the bottom of it:
[youtube=425,350]NIfH0vY2ANA[/youtube]
