Let me begin by welcoming you, once again, to the Federal Reserve Bank of Minneapolis and also by telling you what a pleasure it is to sponsor this conference with the University of Minnesota. I've had the privilege of leading this institution for a number of years now, and it has been a rewarding experience to observe and participate in the fruitful relationship that exists between the bank and the university.

Working together, the university's economics department and the bank's research department – and you would be forgiven if you think those are one and the same – have produced research that has sparked revolutions in economic theory and monetary policy making, and has even helped spawn a Nobel Prize or two along the way. In addition, this academic partnership – which is further realized by the bank's cooperation with the university's Humphrey Institute of Public Affairs, its journalism and law schools, and other departments – has generated educational programs and influenced public-policy initiatives, often in surprising ways. In that regard, perhaps none is more surprising than forming an Early Childhood Research Collaborative and holding research conferences on the subject of early childhood development.

I use the word “surprising” because when you think of the Federal Reserve and its research and policy responsibilities, the first topic that comes to mind is likely not early childhood development. Frankly, it is unlikely to be even the second or third topic that comes to mind. But that's changing.