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Macro Musings with David Beckworth Profile

Macro Musings with David Beckworth

English, Education, 1 season, 452 episodes, 3 days, 15 hours, 12 minutes
About
Hosted by David Beckworth of the Mercatus Center, Macro Musings is a podcast which pulls back the curtain on the important macroeconomic issues of the past, present, and future.
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Steven Kelly on the Financial Stability Implications of the Discount Window

Steven Kelly is the Associate Director of Research at the Yale Program on Financial Stability and is also a returning guest to the podcast. Steven rejoins David on Macro Musings to talk about the financial stability implications of the discount window. David and Steven also discuss the issues with FHLBs, how to fix the challenge of reporting requirements, restarting the term auction facility and committed liquidity facilities, and much more.   Transcript for this week’s episode.   Steven’s Twitter: @StevenKelly49 Steven’s blog: Without Warning   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Domestic Liquidity Provision During Potential Crises* - a panel discussion featuring Steven Kelly, Bill Nelson, Susan McLaughlin, and Luc Laeven at the Federal Reserve Bank of Atlanta’s 2024 Financial Markets Conference   *Weekly Fed Report Still Drives Discount Window Stigma* by Steven Kelly   *The New Bagehot Project* - an initiative by the Yale Program on Financial Stability   *Forward Guidance: Something Old and Something New: Two Potential, Beneficial Discount Window Facilities* by Bill Nelson   Timestamps:   (00:00:00) – Intro   (00:01:02) – The Yale Program on Financial Stability and Steven’s Role   (00:07:04) – Building a Resilient Regulatory Framework   (00:12:45) – Addressing Issues in the Discount Window   (00:21:37) – Responding to Criticism of Liquidity Regulations   (00:27:22) – Fixing the Challenge of Reporting Requirements   (00:33:29) – Restarting the Term Auction Facility and Committed Liquidity Facilities   (00:37:24) – Addressing the Issue with FHLBs   (00:45:26) – Additional Thoughts from the Atlanta Fed Conference Panel   (00:50:59) – Could Increased Use of the Discount Window Cause a Shift in the Fed’s Operating System?   (00:54:44) – Outro
7/8/202455 minutes, 25 seconds
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Ernie Tedeschi on Full Employment, the US Safe Harbor Premium, and the Current Path of R-Star

Ernie Tedeschi is the Director of Economics at the Budget Lab and is a visiting fellow at the Psaros Center for Financial Markets and Policy. Recently, Ernie was a chief economist at the White House’s Council of Economic Advisors, and he is also a returning guest to the podcast. Ernie rejoins Macro Musings to talk about the CEA and some of his recent work on the political risks to the US safe harbor premium and R-star. David and Ernie also discuss the benefits and healing properties of a high employment economy, Ernie’s favorite measures of the labor market, the current and past trends in the path of R-Star, and more.   Transcript for this week’s episode.   Ernie’s Twitter: @ernietedeschi Ernie’s Budget Lab profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Political Risks to the U.S. Safe Harbor Premium* by Ernie Tedeschi   *Recent Movements in [R-star]: The Most Important Interest Rate That You have Never Heard Of* by Ernie Tedeschi   *The 2024 Economic Report of the President* by the White House Council of Economic Advisers   *The Fed Governor Who Proved Larry Summers Wrong* by Nick Timiraos   *Summers, Blanchard Say Waller’s ‘Soft-Landing’ Paper Has Errors* by Craig Torres   Timestamps:   (00:00:00) – Intro   (00:01:49) – Ernie’s Experience at the CEA   (00:09:15) – The Benefits and Healing Properties of a High Employment Economy   (00:15:28) – Ernie’s Favorite Measures of the Labor Market   (00:20:17) – The Broader Debate Surrounding Labor Market Measures   (00:24:07) – The Basics of a US Safe Harbor Premium   (00:28:56) – Political Risk vs. Exorbitant Privilege   (00:33:46) – Debt Ceiling Crises as a Political Risk Scenario   (00:37:01) – Fiscal Dominance as a Political Risk Scenario   (00:43:25) – Outlining the Distinction Between Different R-Stars   (00:48:39) – Past and Current Trends in the Path of R-Stars   (00:54:46) – Assessing the Sources of High Productivity   (00:58:22) – Outro
7/1/202459 minutes, 5 seconds
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Jeffrey Lacker on Fed Governance and Learning from the Recent Inflation Surge

Jeffrey Lacker is a senior affiliated scholar at the Mercatus Center, but has also previously worked at the Federal Reserve Bank of Richmond from 1989 to 2017, serving as its president from 2004 to 2017. Jeff is also a returning guest to podcast, and he rejoins Macro Musings to talk about Fed governance issues and the lessons learned from the recent inflation surge. Specifically, David and Jeffrey also discuss the issue of maximum employment, how the Fed could reform its governance structure, what the central bank should address during the next framework review, and more.   Transcript for this week’s episode.   Jeffrey’s Mercatus profile Jeffrey’s website Jeffrey’s Richmond Fed archive   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Governance and Diversity at the Federal Reserve* by Jeffrey Lacker   *What Lessons Should the Federal Reserve Learn from the Recent Inflation Surge?* Presentation by Jeffrey Lacker at the 2024 UC San Diego Economics Roundtable Lecture Series   *Central Bank Undersight: Assessing the Fed’s Accountability to Congress* by Andrew Levin and Christina Parajon Skinner   *Reform the Federal Reserve’s Governance to Deliver Better Monetary Outcomes* by Dan Katz and Stephen Miran   *Don’t Audit the Fed, Restructure It* by Michael Belongia and Peter Ireland   *Restoring the Promise of Federal Reserve Governance* by Peter Conti-Brown   *Jim Hamilton on Econometrics, Energy Markets, and Low Interest Rates* by Macro Musings   Timestamps:   (00:00:00) – Intro   (00:04:35) – Jeffrey’s View on “Monetary Federalism”   (00:10:01) – Reducing the Number of Regional Fed Banks   (00:13:11) – Addressing Peter Conti-Brown’s Proposals for Fed Governance Reform   (00:18:23) – Addressing Andy Levin and Christina Skinner’s Proposals for Fed Governance Reform   (00:23:07) – Altering the Fed’s Responsibilities as a Bank Regulator   (00:29:21) – What Lessons Should the Federal Reserve Learn from the Recent Inflation Surge?   (00:36:14) – The Issue of Maximum Employment   (00:46:38) – Evaluating the Fed’s Response to the Recent Inflation Episode   (00:50:45) – What Should the Fed Be Addressing During the Next Framework Review?   (00:55:01) – Outro
6/24/202455 minutes, 42 seconds
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Mickey Levy on How to Reboot Fed Policy Ahead of its Upcoming Framework Review

Mickey Levy is Chief Economist for the Americas and Asia for Berenberg Capital Markets, a Wall Street veteran, and a longstanding member of the Shadow Open Market Committee. He and his co-author, Charles Plosser, also have a new paper out titled, *The Fed’s Strategic Approach to Monetary Policy Needs a Reboot.* Mickey joins David on Macro Musings to discuss this paper and its implications for the upcoming Federal Reserve framework review. David and Mickey also discuss the impact and importance of a flat Phillips curve, the Fed’s policy mistakes in the wake of its new flexible average inflation targeting (FAIT) framework, recommendations for how the central bank should approach the next framework review, and much more.   Transcript for this week’s episode.   Mickey’s Twitter: @mickeylevy Mickey’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *The Fed’s Strategic Approach to Monetary Policy Needs a Reboot* by Mickey Levy and Charles Plosser   Timestamps:   (00:00:00) – Intro   (00:01:50) – Mickey Levy’s Career Path and Takeaways from the Most Recent Hoover Monetary Policy Conference   (00:07:24) – What Shaped the First Framework Review?   (00:11:56) – The Fed’s Addition of “Symmetric” Inflation   (00:16:32) – Price Level Drift, Deflationary Fears, and Inflation Expectations at the Fed   (00:23:33) – The Impact and Importance of a Flat Phillips Curve   (00:27:34) – Breaking Down the Elements of FAIT and the Fed’s Policy Mistakes   (00:42:11) – Recommendations for the Fed’s Upcoming Framework Review   (00:57:54) – Outro
6/17/202458 minutes, 35 seconds
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Lars Christensen on AI and its Impact on Monetary Policy and the Broader Field of Economics

Lars Christensen is a founding member of the market monetarist tradition, an entrepreneur in the AI space, and is also a returning guest to Macro Musings. Lars rejoins the podcast to talk about AI and its implications for the economy and for monetary policy. David and Lars also discuss the basics and implications of dynamic pricing, AI’s growing use within econometric analysis, how AI will impact the Fed and its policymaking, and much more.   Transcript for this week’s episode.   Lars’s Twitter: @MaMoMVPY Lars’s blog   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *From Merchants to Quants: The Digital Revolution in Retail* by Lars Christensen   *Less Than Zero: The Case for a Falling Price Level in a Growing Economy* by George Selgin   Timestamps:   (00:00:00) – Intro   (00:01:16) – Lars’s Move from Macro to AI   (00:08:02) – The Basics and Implications of Dynamic Pricing   (00:16:17) – Using AI for Econometric Analysis   (00:23:54) – The Implications of AI for the Economics Field   (00:35:45) – How Will AI Impact the Federal Reserve and its Policymaking   (00:38:55) – Deflation as a Response to an AI Driven Productivity Shock   (00:52:08) – Outro   Photo Credit: Nordnet Bank
6/10/202452 minutes, 49 seconds
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Ryan Bourne on *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy*

Ryan Bourne is the R. Evan Scharf Chair for Public Understanding of Economic at the Cato Institute, and he is also the editor and contributor to a new book titled, *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy.* Ryan joins Macro Musings to talk about this new book, and specifically, the history and functionality of rent and price controls, the basics of dynamic pricing, the root causes of inflation, and a lot more.   Transcript for this week’s episode.   Ryan’s Twitter: @MrRBourne Ryan’s Cato profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Created Bad Policy* by Ryan Bourne et al.   *I, Pencil* by Leonard Read   *Forty Centuries of Wage and Prices Controls: How Not to Fight Inflation* by Robert Schuettinger and Eamonn Butler   *Shock Values: Prices and Inflation in American Democracy* by Carola Binder   Timestamps:   (00:00:00) – Intro   (00:01:05) – The Background Motivation for “The War on Prices*   (00:06:32) – The Definition and Importance of Prices   (00:12:41) – The Parable of “I, Pencil”   (00:18:39) – Rationing on Quality or Quantity: Rent Control   (00:26:39) – The World War II Experience with Price Controls   (00:32:58) – Price and Wage Controls During the Nixon Administration   (00:35:48) – The Effects of a Minimum Wage   (00:38:38) – The Basics of Dynamic Pricing   (00:44:03) – Defining Inflation and Establishing its Sources   (00:56:08) – Was the Recent Inflation Surge Actually Optimal?   (00:59:51) – Outro
6/3/20241 hour, 31 seconds
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George Selgin on Fed Master Accounts, Central Bank Independence, and the Fed’s Balance Sheet

George Selgin is a senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute. George is also a frequent guest of the podcast, and he rejoins Macro Musings to talk about some of the recent developments in the monetary and fiscal policy space. Specifically, David and George discuss recent updates regarding Fed master accounts, the problematic aspects of the Fed’s balance sheet, why a second Trump term would threaten central bank independence, and much more.   Transcript for this week’s episode.   George’s Twitter: @GeorgeSelgin George’s Cato profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   Caitlin Long’s tweet regarding the Fed’s special treatment for approving master accounts   *Public comments on the Proposed Guidelines for Evaluating Requests for Accounts and Services* by George Selgin   *Custodia Bank Inc v. Federal Reserve Board of Governors* Court documents from the Wyoming District Court   *Annual Report on Open Market Operations (2023)* by the Federal Reserve Bank of New York   *Trump Allies Draw Up Plans to Blunt Fed’s Independence* by Andrew Restuccia, Nick Timiraos, and Alex Leary   *Trump Advisers Discuss Penalties for Nations That Move Away From the Dollar* by Saleha Mohsin, Jennfier Jacobs, and Nancy Cook   *Hayek versus Keynes on How the Price Level Ought to Behave* by George Selgin   *The Menace of Fiscal QE* by George Selgin   *George Selgin on False Dawn: The New Deal and the Promise of Recovery* by Macro Musings   Timestamps:   (00:01:36) – Intro   (00:06:26) – Updates on Fed Master Accounts and the Custodia Case   (00:17:57) – Problematic Aspects of the Fed’s Balance Sheet   (00:22:50) – The Importance of the Overnight Unsecured Interbank Lending Market   (00:34:26) – Responding to the Jared Bernstein Incident   (00:46:33) – Donald Trump, Central Bank Independence, and Dollar Dominance   (00:56:54) – Outro
5/27/202457 minutes, 47 seconds
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Roberto Perli on the Past, Present, and Future of the Fed’s Balance Sheet

Roberto Perli is the manager of the System Open Market Account (SOMA) and a senior leader in the New York Fed’s Market Group. In his role, Roberto is responsible for implementing monetary policy at the direction of the Federal Open Market Committee (FOMC). Roberto is also a returning guest to the podcast, and he rejoins Macro Musings to talk about a recent speech he made titled, *Balance Sheet Reduction: Progress to Date and a Look Ahead.* Specifically, David and Roberto discuss the Fed’s recent balance sheet activities, the basics and functionality of the overnight reverse repo facility, the importance of slowing down the Fed’s balance sheet runoff, and much more.   Transcript for this week’s episode.   Roberto’s NY Fed profile Roberto’s Twitter: @R_Perli   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Balance Sheet Reduction: Progress to Date and a Look Ahead* - Remarks by Roberto Perli at the 2024 Annual Primary Dealer Meeting, Federal Reserve Bank of New York   Timestamps:   (00:00:00) – Intro   (00:04:49) – Breaking Down the Role of SOMA Manager   (00:08:43) – Recapping the Fed’s Balance Sheet Activities   (00:11:04) – How to Think About Quantitative Tightening   (00:13:19) – Breaking Down the Overnight Reverse Repo Facility   (00:20:42) – Slowing Down the Runoff and the Future of QT   (00:26:48) – How to Determine the Critical Level of Reserves   (00:33:03) – The Structural Demand for Bank Reserves Over Time   (00:38:55) – The Advantages of the Floor Operating System   (00:47:49) – Reserve Supply Focus Moving Forward   (00:49:44) – Outro
5/20/202450 minutes, 25 seconds
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Mary Daly on Fed Policy, the Economic Impacts of AI, and the Future of the Fed’s Framework

Mary Daly is the president and CEO of the Federal Reserve Bank of San Francisco, a voting member of the Federal Open Market Committee (FOMC), and is also a 28-year veteran of the Federal Reserve System. President Daly joins David for this special live episode of Macro Musings to talk about her non-linear career path to the world of monetary policy, the long-term economic impacts of AI, the future outlook for Fed policy and the Fed’s framework, and much more.   Transcript for this week’s episode.   Mary’s Twitter: @MaryDalyEcon Mary’s San Francisco Fed profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Facts, Fears, and Functionality of NGDP Level Targeting* by David Beckworth   Timestamps:   (00:00:00) – Intro   (00:01:30) – Mary Daly’s Background   (00:06:09) – Recent Inflationary Trends and the Future of Fed Policy   (00:15:39) – The Trajectory of R-Star Over the Medium to Long-Run   (00:19:06) – The Long-Term Economic Impacts of AI   (00:29:51) – Expectations for the Upcoming Fed Framework Review   (00:33:35) – Prospects for Nominal GDP Targeting at the Fed   (00:36:58) – Fed Policymaking During an Election Year   (00:38:16) – Audience Q&A Period   (01:01:09) – Outro
5/13/20241 hour, 1 minute, 55 seconds
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Dan Katz and Stephen Miran on Reforming the Federal Reserve’s Governance

Dan Katz and Stephen Miran are former senior advisors for the US Treasury Department and are currently adjunct fellows at the Manhattan Institute. Dan and Stephen have also written a new paper titled, *Reform the Federal Reserve’s Governance to Deliver Better Monetary Outcomes,* and they join Macro Musings to talk about this paper and the proposed reforms for the Federal Reserve outlined in it. Specifically, Dan, Steve, and David discuss the ever-expanding reach of the Fed, its role as debt manager and bank regulator, the current issue with the central bank’s personnel, and a lot more.   Transcript for this week’s episode.   Stephen’s Twitter: @SteveMiran Stephen’s Manhattan Institute profile   Dan’s Twitter: @DanielScottKatz Dan’s Manhattan Institute profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Reform the Federal Reserve’s Governance to Deliver Better Monetary Outcomes* by Dan Katz and Stephen Miran   Timestamps:   (00:00:00) – Intro   (00:04:20) – The Fed’s Issue of Picking Winners and Losers   (00:09:17) – The Fed’s Role as Bank Regulator   (00:12:53) – The Ever-Expanding Reach of the Fed   (00:17:50) – The Fed as a Debt Manager   (00:23:33) – What Should the Fed Do in a Zero Lower Bound Environment   (00:27:26) – Personnel is Policy: The Issue with Fed Personnel   (00:29:55) – Options for Personnel Reform at the Fed   (00:38:22) – Making the Fed President Selection Process More Robust   (00:47:28) – The Nature of Debate at the Fed   (00:50:53) – The Scope for Change at the Fed   (00:53:21) – Outro
5/6/202454 minutes, 3 seconds
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BONUS: Richard Clarida on His Musical Interests and *Time No Changes*

Richard Clarida is a professor of economics at Columbia University, a managing director at PIMCO, and was most recently the Vice Chair of the Federal Reserve Board of Governors. Richard rejoins David for this special bonus segment to talk about his interest in music and his first studio album, *Time No Changes.*   Richard’s Federal Reserve profile Richard’s PIMCO archive   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Time No Changes* by Richard Clarida   *Richard Clarida on FAIT, R-Star, and the Future of the Fed’s Framework* by Macro Musings
5/1/20246 minutes, 39 seconds
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Richard Clarida on FAIT, R-Star, and the Future of the Fed’s Framework

Richard Clarida is a well-known academic and policymaker who most recently was the Vice Chair of the Federal Reserve Board of Governors. Richard is currently a professor of economics at Columbia university and is also a managing director at PIMCO. Richard joins David on Macro Musings to talk about his academic and policy work, as well as his outlook for FAIT, the Fed’s framework review, the future of R-Star, and more.   Transcript for this week’s episode.   Richard’s Federal Reserve profile Richard’s PIMCO archive   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *How the Bundesbank Conducts Monetary Policy* by Richard Clarida and Mark Gertler   *The Science of Monetary Policy: A New Keynesian Perspective* by Richard Clarida, Jordi Gali, and Mark Gertler   *Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory* by Richard Clarida, Jordi Gali, and Mark Gertler   *Monetary Policy Rules in Practice: Some International Evidence* by Richard Clarida, Jordi Gali, and Mark Gertler   Timestamps:   (00:00:00) – Intro   (00:03:04) – Richard Clarida’s Background   (00:11:37) – Bridging the Gap Between Academic Economics and Real-World Markets   (00:21:50) – Richard’s Journey Through the Policy World   (00:36:29) – Constructing the Fed’s FAIT Framework   (00:40:53) – Evaluating the Results of the FAIT Framework   (00:54:17) – The Future of the Fed’s Framework   (00:57:08) – The Future of R-Star   (01:00:50) – Outro
4/29/20241 hour, 1 minute, 30 seconds
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Saleha Mohsin on *Paper Soldiers: How the Weaponization of the Dollar Changed the World Order*

Saleha Mohsin is a senior Washington correspondent for Bloomberg News, where she covers policy, politics, and power in Washington, DC. Saleha is also the author of a new book titled, *Paper Soldiers: How the Weaponization of the Dollar Changed the World Order,* and she joins David on Macro Musings to talk about it. Specifically, David and Saleha also discuss the intelligence and enforcement tools of the US Treasury, the basics and importance of SWIFT, the effectiveness of US sanctions, and a lot more.   Transcript for this week’s episode.   Saleha’s Twitter: @SalehaMohsin Saleha’s Bloomberg archive   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Paper Soldiers: How the Weaponization of the Dollar Changed the World Order* by Saleha Mohsin   *The Big Take* hosted by Saleha Mohsin   Timestamps:   (00:00:00) – Intro   (00:03:43) – The Weaponization of the Dollar on the Global Stage   (00:08:55) – The Intelligence and Enforcement Tools of the US Treasury Department   (00:13:10) – Breaking Down SWIFT and Its Importance   (00:18:27) – Sanctioning Russian Oligarchs   (00:22:42) – The Importance and Significance of Robert Rubin   (00:25:29) – The George W. Bush of the Treasury Department   (00:37:42) – Breaking Down the Joint Comprehensive Plan of Action   (00:41:06) – The Trump Administration, China, and the Rise of Populism   (00:45:30) – Evaluating the Effectiveness of the Russia Sanctions   (00:51:18) – Threats to the US in the Future   (00:52:48) – Outro
4/22/202453 minutes, 38 seconds
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Josh Hendrickson on the Treasury Standard and Global Dollar Dominance

Josh Hendrickson is the chair of the department of economics at the University of Mississippi and is the author of a new paper that looks at dollar dominance through the broad historical perspective of what is called the “Treasury Standard.” Josh is also a returning guest to Macro Musings, and he rejoins the podcast to talk about this paper and the Treasury Standard concept. David and Josh also discuss the state’s monopoly over money, the path to global dollar dominance, the path dependency of the dollar system, and a lot more.   Transcript for this week’s episode.   Josh’s Twitter: @RebelEconProf Josh’s Ole Miss profile Josh’s joint Substack   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *The Treasury Standard: Causes and Consequences* by Joshua Hendrickson   *If Things Are So Great, Why Don’t People Think So?* by Josh Hendrickson   *The Cost of Money is Part of the Cost of Living: New Evidence on the Consumer Sentiment Anomaly* by Marijn Bolhuis, Judd Cramer, Karl Schulz, and Lawrence Summers   *On a Correct Measure of Inflation* by Armen Alchian and Benjamin Klein
4/15/202456 minutes, 13 seconds
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Julia Coronado on Productivity, Commercial Real Estate, and the Fed’s Soft Landing

Julia Coronado is the president and founder of MacroPolicy Perspectives, a Wall Street research firm. Julia was also recently the president of the National Association of Business Economists, and she has served as an economist on Wall Street and at the Federal Reserve Board of Governors. Julia is also a returning guest to Macro Musings, and she rejoins the podcast to talk about the prospects of a productivity surge, the Fed’s journey to a soft landing, the state of the commercial real estate market, and more.   Transcript for this week’s episode.   Julia’s Twitter: @jc_econ Julia’s MacroPolicy Perspectives profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our Macro Musings merch!
4/8/202449 minutes, 58 seconds
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Isabel Schnabel on the ECB and its New Operational Framework

Isabel Schnabel is a Member of the Executive Board of the European Central Bank, and she joins David on Macro Musings to talk about the ECB and its new operational framework. Specifically, David and Isabel also discuss the structure, operations, and monetary policy instruments of the ECB, the history of its operating framework, the details surrounding its new regime, and more.   Transcript for this week's episode.   Isabel’s Twitter: @Isabel_Schnabel Isabel’s ECB profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *The Eurosystem’s Operational Framework* - Speech by Isabel Schnabel at the Money Market Contact Group meeting   Slides for *The Eurosystem’s Operational Framework* by Isabel Schnabel   *Back to Normal?* Balance Sheet Size and Interest Rate Control* - Speech by Isabel Schnabel at an event organized by Columbia University and SGH Macro Advisors   Slides for *Back to Normal? Balance Sheet Size and Interest Rate Control* by Isabel Schnabel
4/1/202456 minutes, 52 seconds
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Andrew Levin and Christina Parajon Skinner on *Central Bank Undersight: Assessing the Fed’s Accountability to Congress*

Andy Levin is a professor of economics at Dartmouth University and a former senior staffer at the Federal Reserve Board of Governors. Christina Parajon Skinner is a legal scholar at the University of Pennsylvania and formerly was legal counsel to the Bank of England. Andy and Christina have co-authored a new article titled, *Central Bank Undersight: Assessing the Fed’s Accountability to Congress,* and they rejoin David on Macro Musings to talk about it. Specifically, they discuss the Fed’s power under a constitutional authority, the three sources of Fed undersight, proposals for reform, and more.   Transcript for this week’s episode.   Andrew’s Twitter: @andrewtlevin Andrew’s Dartmouth profile   Christina’s Twitter: @CParaSkinner Christina’s UPenn profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Central Bank Undersight: Assessing the Fed’s Accountability to Congress* by Andrew Levin and Christina Parajon Skinner   *Andrew Levin on the Costs and Benefits of QE4 and the Future of the Fed’s Balance Sheet* by Macro Musings
3/25/202454 minutes, 44 seconds
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Anat Admati on the US Banking System and the Basel III Endgame

Anat Admati is a professor of finance and economics at Stanford University and is the coauthor of the 2013 book, *The Bankers’ New Clothes: What’s Wrong With Banking and What to Do About It.* Anat is also a returning guest to Macro Musings and she rejoins the podcast to talk about the 2024 expanded edition of the same book, as well as the most recent developments in banking. David and Anat also discuss the effectiveness of post-financial crisis regulations, the design and impact of Basel III Endgame, the fallout from the most recent regional banking crisis, and a lot more.   Transcript for this week’s episode.   Anat’s Twitter: @anatadmati Anat’s Stanford profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *The Bankers’ New Clothes: What’s Wrong With Banking and What to Do About It – New and Expanded Edition* by Anat Admati and Martin Hellwig   *The Parade of Bankers’ New Clothes Continues: 34 Flawed Claims Debunked* by Anat Admati and Martin Hellwig   *Anat Admati on Debt, Equity, and Financial Instability* by Macro Musings   *Anat Admati on the Perils of Corporate Debt and How COVID-19 Relief Efforts Have Gone Wrong* by Macro Musings   *Why the Innocent Plead Guilty and the Guilty Go Free: And Other Paradoxes of Our Broken Legal System* by Jed Rakoff
3/18/202456 minutes, 11 seconds
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Steven Kamin and Mark Sobel on the Current State of Dollar Dominance

Steven Kamin is a senior fellow at the American Enterprise Institute, was previously the director of the Division of International Finance at the Federal Reserve Board, and is a returning guest to the podcast. Mark Sobel is the US Chairman at the Official Monetary and Financial Institutions Forum, and he previously served at the US Department of the Treasury for nearly four decades, including as Deputy Assistant Secretary for International Monetary and Financial Policy from 2000 to early 2015. Also, from 2015 through 2018, Mark served as a US representative at the IMF. Steven and Mark join Macro Musings to talk about dollar dominance and whether or not it is here to stay. Specifically, Steven and Mark also discuss current debates surrounding dollarization, the threat that China poses to dollar dominance, the weaponization of the dollar in the global economy, and a lot more.   Transcript for this week’s episode.   Steven’s Twitter: @steven_kamin Steven’s AEI profile   Mark’s Twitter: @sobel_mark Mark’s CSIS profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Dollar Dominance is Here to Stay for the Foreseeable Future—the Real Issue for the Global Economy is How and Why* by Steven Kamin and Mark Sobel   *Steven Kamin on the Global Influence of Fed Policy and the U.S. Dollar* by Macro Musings   *US Sanctions Reinforce the Dollar’s Dominance* by Michael Dooley, David Folkerts-Landau, and Peter Garber
3/11/202456 minutes, 19 seconds
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Peter Williams on Interest Rates, Term Premium, and the Importance of Inflation Expectations

Peter Williams is a managing director of macroeconomic research at 22V Research and was formerly at the IMF and the World Bank. Peter joins David on Macro Musings to provide a market perspective on interest rates, Treasury markets, and monetary policy. Specifically, David and Peter discuss the dos and don’ts of estimating term premiums, the importance and future of R-star, the usefulness of inflation expectations, and a lot more.   Transcript for this week’s episode.   Peter’s LinkedIn profile Peter’s 22V bio   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *A Macroeconomic Approach to the Term Premium* by Emanuel Kopp and Peter Williams   *Reading the Stars* by Peter Williams, Yasser Abdih, and Emanuel Kopp   *Inflation Expectations in the U.S.: Linking Markets, Households, and Businesses* by Peter Williams
3/4/202457 minutes, 25 seconds
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Bill Nelson on the Using the Discount Window for Liquidity Requirements and Its Implications for the Fed’s Balance Sheet

Bill Nelson is the chief economist and an executive vice president at the Bank Policy Institute. Bill previously was a deputy director of the Division of Monetary Affairs at the Federal Reserve Board, where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. Bill also worked closely with the BIS working groups in the design of liquidity regulations. As a returning guest to Macro Musings, he rejoins David to talk about the recent proposals to improve the Fed’s lender of last resort role via the discount window, as well as recent developments related to the Fed’s balance sheet.   Transcript for this week’s episode.   Bill’s BPI profile BPI’s Twitter: @bankpolicy   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *Comment on the New G30 Report* by Bill Nelson   *Bank Failures and Contagion: Lenders of Last Resort, Liquidity, and Risk Management* by the Group of Thirty
2/26/202451 minutes, 53 seconds
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Eric Leeper on *A Fiscal Account of COVID Inflation*

Eric Leeper is a professor of economics at the University of Virginia, a former advisor to central banks around the world, and a distinguished visiting scholar at the Mercatus Center. Eric is also a returning guest to the podcast, and he rejoins Macro Musings to talk about his work on the fiscal accounting of the COVID inflation surge. Specifically, David and Eric discuss fiscal dominance during the pandemic period, how the fiscal theory of the price level explains inflationary trends, the backward and forward-looking fiscal accounting exercises, and more.   Transcript for this week’s episode.   Eric’s Twitter: @EricMLeeper Eric’s UVA profile Eric’s Mercatus profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *A Fiscal Account of COVID Inflation* by Eric Leeper and Joe Anderson   *Fiscal Dominance—What It Is and How It Threatens Inflation Control* by Eric Leeper   *Three World Wars: Fiscal-Monetary Consequences* by George Hall and Thomas Sargent   *The Fiscal Theory of the Price Level With a Bubble* by Markus Brunnermeier, Sebastian Merkel, and Yuliy Sannikov   *George Hall on the History of the U.S. National Debt and Government Financing* by Macro Musings
2/19/20241 hour, 1 minute, 12 seconds
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Jeffrey Lacker on Governance at the Federal Reserve

Jeffrey Lacker is a former president of the Federal Reserve Bank of Richmond, where he served as its head from 2004 to 2017. Jeffrey is now a senior affiliated scholar at the Mercatus Center and is also a returning guest to the podcast. He rejoins David on Macro Musings to talk about a wide range of Fed governance issues, including the evolving nature of governance at the Fed, the increasing politicization of the central bank, its continuing relationship with Congress, and a lot more.   Transcript for this week’s episode.   Jeffrey’s Mercatus profile Jeffrey’s website Jeffrey’s Richmond Fed archive   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Related Links:   *Governance and Diversity at the Federal Reserve* by Jeffrey Lacker   *Some Questions About the Fed’s Monetary Policy Operating Regime* by Jeffrey Lacker   *The Legacy of Bennett McCallum and Lessons for Monetary Policy Today* an event hosted by the Mercatus Center   *Ed Nelson on the Life, Work, and Legacy of Bennett McCallum* by Macro Musings   *What Can the Fed Do About the Deficit? Nothing* by Greg Ip
2/12/202456 minutes, 46 seconds
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Mark Koyama on *How the World Became Rich: The Historical Origins of Economic Growth*

Mark Koyama is an associate professor of economics at George Mason University and is a senior fellow with the F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics at the Mercatus Center. Mark is also a returning guest to the podcast, and he rejoins Macro Musings to talk about his recent book that he co-authored with Jared Rubin titled, *How the World Became Rich: The Historical Origins of Economic Growth.* Specifically, David and Mark discuss the key drivers of long-run economic growth throughout history and what we might be able to expect in the future.   Transcript for this week’s episode.   Mark’s Twitter: @MarkKoyama Mark’s GMU profile Mark’s Mercatus profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *How the World Became Rich: The Historical Origins of Economic Growth* by Mark Koyama and Jared Rubin
2/5/202455 minutes, 49 seconds
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Gauti Eggertsson on the Post-Pandemic Inflation Surge and its Implications for Monetary Policy

Gauti Eggertsson is a professor of economics at Brown University and is the author of several recent papers on the causes of the 2021-22 inflation surge and the lessons to be drawn from it for monetary policy going forward. Gauti is also a returning guest to Macro Musings, and he rejoins the show to talk about these papers and their findings. Specifically, David and Gauti discuss the role of the Fed’s FAIT framework in the post-pandemic inflation surge, the return of the non-linear Phillips curve, the merits of nominal GDP targeting and average nominal output targeting, Gauti’s policy suggestions for the Fed, and a lot more.   Transcript for this week’s episode.   Gauti’s Twitter: @GautiEggertsson Gauti’s website Gauti’s Brown University profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *The Inflation Surge of the 2020s: The Role of Monetary Policy* by Gauti Eggertsson and Donald Kohn   *It’s Baaack: The Surge in Inflation in the 2020s and the Return of the Non-Linear Phillips Curve* by Pierpaolo Benigno and Gauti Eggertsson   *The Slanted-L Phillips Curve* by Pierpaolo Benigno and Gauti Eggertsson   *A Toolkit for Solving Models with a Lower Bound on Interest Rates of Stochastic Duration* by Gauti Eggertsson, Sergey Egiev, Alessandro Lin, Josef Platzer, and Luca Riva   *The Fed’s New Policy Framework: A Major Improvement but More Can Be Done* by Gauti Eggertsson, Sergey Egiev, Alessandro Lin, Josef Platzer, and Luca Riva   *The Princeton School and the Zero Lower Bound* by Scott Sumner   *Temporary Price-Level Targeting: An Alternative Framework for Monetary Policy* by Ben Bernanke
1/29/202459 minutes, 39 seconds
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Jonathon Hazell on Phillips Curves, Wage Rigidity, and How to Measure R-Star

Jonathon Hazell is an assistant professor of economics at the London School of Economics. Jonathon joins Macro Musings to talk about Phillips curves, R-stars, and nominal wage rigidity. Specifically, Jonathon and David also discuss the how to view the recent inflation experience, how to measure the natural rate using natural experiments, the downward nature of wage rigidity, and a lot more.   Transcript for this week’s episode.   Jonathon’s Twitter: @JADHazell Jonathon’s website Jonathon’s LSE profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *The Natural Rate of Return on Capital: Replication Package* by Jonathon Hazell, Veronica Backer-Peral, and Atif Mian   *The Slope of the Phillips Curve: Evidence From US States* by Jonathon Hazell, Juan Herreno, Emi Nakamura, and Jon Steinsson   *Measuring the Natural Rate Using Natural Experiments* by Veronica Backer-Peral, Jonathon Hazell, and Atif Mian   *Downward Rigidity in the Wage for New Hires* by Jonathon Hazell and Bledi Taska   *National Wage Setting* by Jonathon Hazell, Christina Patterson, Heather Sarsons, and Bledi Taska   *The Unemployment Volatility Puzzle: Is Wage Stickiness the Answer?* by Christopher Pissarides
1/22/20241 hour, 10 minutes, 13 seconds
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Skanda Amarnath and Preston Mui on the Tribal Transitory Debate and the Future of the Fed’s Framework

Skanda Amarnath is the executive director of Employ America, a think tank that promotes full employment in the American economy, and Preston Mui is also a senior economist at Employ America. Skanda and Preston join Macro Musings to talk about U.S. disinflation and the debates surrounding it, as well as what we can expect from Fed policy in 2024 and beyond, and finally, the Fed’s framework review that is set to begin later this year.   Transcript for this week’s episode.   Skanda’s Twitter: @IrvingSwisher Skanda’s Medium archive   Preston’s Twitter: @PrestonMui Preston’s Github profile   Skanda and Preston’s Employ America bios   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Ten Thoughts on the Tribal “Transitory” Debate as We Enter 2024* by Skanda Amarnath   *Three Motivations for Interest Rate Normalization: A Playbook for Fed Policy in 2024* by Preston Mui and Skanda Amarnath   Jerome Powell’s Opening Remarks at Monetary Policy Challenges in a Global Economy, a policy panel at the 24th Jacques Polak Annual Research Conferences, hosted by the IMF
1/15/20241 hour, 5 minutes, 55 seconds
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Claudio Borio on the Future of Central Bank Operating Systems

Claudio Borio is the head of the Monetary and Economic Department at the Bank for International Settlements, or BIS. Claudio is also a returning guest to the podcast, and he rejoins Macro Musings to talk about central bank operating systems and the challenge of large balance sheets at central banks. David and Claudio also discuss the basics and uniqueness of the scarce reserve system, the arguments in favor of an abundant reserve system, the politics of large central bank balance sheets, the possibility of a tiered reserve system, and a lot more.   Transcript for this week’s episode.   Claudio’s BIS profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Getting Up From the Floor* by Claudio Borio   *Why Central Banks Should (but Might Not) Keep the Market Flooded With Money* by Jon Sindreu   *Corridor, Floor, Other: Are Operating Frameworks Fit for the Future?* by Daniel Hinge
1/8/202450 minutes, 58 seconds
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Colby Smith, Steven Kelly, and Gerard DiPippo on the Highlights of 2023 and Looking Ahead to the Future

Colby Smith is the US economics editor for the Financial Times, Steven Kelly is the Associate Director of Research at the Yale Program on Financial Stability, and Gerard DiPippo is the Senior Geoeconomics Analyst at Bloomberg. For this special year-end episode of Macro Musings, Colby, Steven, and Gerard join David to talk about the major surprises, themes, and underreported as well as overreported stories of the past year. They also discuss their prediction outcomes throughout 2023, the economic and political landscape ahead for 2024, and a lot more.   Transcript for this week’s episode.   Colby’s FT profile Colby’s Twitter: @colbyLsmith   Steven’s Substack: Without Warning Steven’s Twitter: @StevenKelly49   Gerard’s Twitter: @gdp1985   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Sunk Costs: The Difficulty of Using Sanctions to Deter China in a Taiwan Crisis* by Gerard DiPippo and Jude Blanchette   *Getting Up from the Floor* by Claudio Borio
1/1/202454 minutes, 38 seconds
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Tyler Cowen on the Greatest Economist of All Time and Other Macro Awards

Tyler Cowen is a professor of economics at George Mason University, and is the co-author of the popular economics blog, Marginal Revolution. Tyler has also published widely in the field of economics, and he is the author of numerous books, including his most recent one titled, *GOAT: Who is the Greatest Economist of All Time, and Why Does it Matter?* As a returning guest to show, Tyler rejoins Macro Musings for this special holiday episode to break down who should be considered the greatest economist of all time. David and Tyler also assign awards to the best performing macroeconomic theories of the past decade, in addition to discussing Tyler’s view on recent deflationary trends, the Fed’s framework, and more.   Transcript for this week’s episode.   Tyler’s Mercatus profile Tyler’s blog: Marginal Revolution Tyler’s Twitter: @tylercowen   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Donate to Macro Musings! Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *GOAT: Who is the Greatest Economist of All Time and Why Does it Matter?* by Tyler Cowen   *Tyler Cowen on the Culture of Big Business in the United States* by Macro Musings
12/25/202356 minutes, 41 seconds
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Nicolas Cachanosky on Dollarization in Argentina

Nicolas Cachanosky is an associate professor of economics at the University of Texas at El Paso, and he, along with Emilio Ocampo, are the authors of a recent book titled, *Dollarization: A Solution for Argentina.* Nicolas joins Macro Musings to talk about the potential dollarization of Argentina, including what it would require and mean for the country. Specifically, David and Nicolas also discuss Argentina’s hyperinflationary experience, the three necessary steps for dollarization, the differences between dollarization and currency boards, and a lot more.   Transcript for this week’s episode.   Nicolas’s Substack: Economic Order Nicolas’s Twitter: @n_cachanosky Nicolas’s website Nicolas’s UTEP profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Donate to Macro Musings! Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Dollarization: A Solution for Argentina* by Nicolas Cachanosky and Emilio Ocampo   *How to Dollarize Argentina* by Nicolas Cachanosky   *Pro Dollarization* by John Cochrane   *Argentina Dollarization Is Medium-Term Goal, Caputo Tells Bankers* by Ignacio Olivera Doll
12/18/20231 hour, 2 minutes, 49 seconds
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Charlie Evans on the Past, Present, and Future of U.S. Monetary Policy

Charles Evans was a 31-year veteran of the Federal Reserve System, serving as a researcher, vice president, and, ultimately, president and CEO of the Chicago Fed from 2007 to 2023. Charles joins Macro Musings to talk about his past and ongoing work on US monetary policy. Specifically, Charles and David discuss his work as a regional bank president and a member of the FOMC, the creation and adoption of the Evans rule, the current path of R-Star, the future of the Fed’s framework, and more.   Transcript for this week’s episode.   Charles’s Chicago Fed profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Donate to Macro Musings! Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Implications for the Federal Reserve’s MP Framework in the Future* by Charles Evans
12/11/20231 hour, 3 minutes, 1 second
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Matteo Maggiori and Jesse Schreger on Geoeconomics and its Policy Implications

Matteo Maggiori is a professor of finance at Stanford University and a returning guest to the podcast, and Jesse Schreger is an associate professor of economics at Columbia University. Matteo and Jesse, along with Christopher Clayton, have recently authored a paper titled, *A Framework for Geoeconomics,* and they join David on Macro Musings to discuss it. Specifically, Matteo, Jesse, and David also discuss the basics, core concepts, and real world examples of geoeconomics, the key elements of a global hegemon, the future of the discipline, and a lot more.   Transcript for this week’s episode.   Matteo’s Twitter: @m_maggiori Matteo’s Stanford profile Matteo’s website   Jesse’s Twitter: @JSchreger Jesse’s Columbia profile Jesse’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Donate to Macro Musings! Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *A Framework for Geoeconomics* by Christopher Clayton, Matteo Maggiori, and Jesse Schreger   *My Economic Statecraft Syllabus* by Daniel Drezner   *A Model of the International Monetary System* by Emmanuel Farhi and Matteo Maggiori   *National Power and the Structure of Foreign Trade* by Albert Hirschman   *Bucking the Buck: US Financial Sanctions and the International Backlash Against the Dollar* by Daniel McDowell
12/4/20231 hour, 2 minutes, 27 seconds
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Matthew Raskin on Treasury Market Stability, Interest Rates, and the Fed’s Balance Sheet

Matthew Raskin is the US head of rates research at Deutsche Bank and was formerly a senior staff member of the Federal Reserve System. Matthew joins David on Macro Musings to talk about interest rates, QE, QT, and the Federal Reserve’s balance sheet. David and Matthew also discuss the inside story behind the Fed’s shift in operating system, Matthew’s framework for long-term interest rates, how to improve the liquidity and stability of the Treasury market, and a lot more.   Transcript for this week’s episode.   Matthew’s LinkedIn profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *The Financial Market Effects of the Federal Reserve’s Large-Scale Asset Purchases* by Joseph Gagnon, Matthew Raskin, Julie Remache, and Brian Sack
11/27/202351 minutes, 18 seconds
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David Papell on the History, Motivations, and Current Applications of Monetary Policy Rules

David Papell is a professor of economics at the University of Houston and has published widely on monetary policy rules. David joins Macro Musings to talk about his recent paper, *Policy Rules and Forward Guidance Following the COVID-19 Recession,* as well as the origins, past uses, and current applications of monetary policy rules.   Transcript for this week’s episode.   David’s Twitter: @DavidPapell David’s University of Houston portal   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *The Fed Approaches the End of the Rate Hiking Cycle* by David Papell and Ruxandra Prodan   *Policy Rules and Forward Guidance Following the COVID-19 Recession* by David Papell and Ruxandra Prodan   *Policy Rule Legislation in Practice* by Alex Nikolsko-Rzhevskyy, David Papell, and Ruxandra Prodan   *Policy Rules and Economic Performance* by Alex Nikolsko-Rzhevskyy, David Papell, and Ruxandra Prodan
11/20/202354 minutes, 33 seconds
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Rachel Siegel on the Fed, Commercial Real Estate, and the Economics of the 2024 Election

Rachel Siegel is a reporter for the Washington Post, where she covers the Federal Reserve and also reports on the domestic economy more broadly. Rachel joins Macro Musings to talk about the current Fed beat as well as her work on other economic issues, including how the Fed deals with physical cash, the precarious state of the commercial real estate market, the potential issues facing voters heading into the 2024 election, and a lot more.   Transcript for this week’s episode.   Rachel’s Twitter: @rachsieg Rachels Washington Post profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Two Blocks from the Federal Reserve, a Growing Encampment of the Homeless Grips the Economy’s Most Powerful Person* by Rachel Siegel   *The High-tech, Super-secure Government Warehouse Where Old Cash Dies* by Rachel Siegel, Joy Sharon Yi, Hannah Yoon, and Emily Wright   *How the ‘Urban Doom Loop’ Could Pose the Next Economic Threat* by Rachel Siegel   *Austin’s Office Market is Exploding. But No One is Moving in* by Rachel Siegel   *Remote Work Guru Nick Bloom Thinks We’ll Never Go Back to the Office Full-time – But ‘Maintaining Discipline is Important’* by Geoff Colvin
11/13/202358 minutes, 5 seconds
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Will Bateman on the History and Evolving Nature of the Fiscal Fed

Will Bateman is an associate professor and associate dean of research at the Australian National University College of Law. Will has recently authored a paper titled, *The Fiscal Fed,* which takes a close look at the Fed’s fiscal functions during the two World Wars, the Great Depression, the Cold War, the global financial crisis, and the COVID-19 pandemic. Will joins Macro Musings to talk about this paper, the origins and evolution of the Fed, the implications for policymakers, and a lot more.   Transcript for this week’s episode.   Will’s ANU profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *The Fiscal Fed* by Will Bateman   *The Law of Monetary Finance Under Conventional Monetary Policy* by Will Bateman
11/6/20231 hour, 9 seconds
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PJ Glandon on the State of Macroeconomics: Research and Pedagogy

PJ Glandon is an associate professor of economics at Kenyon College, where he also serves as chair of the economics department. PJ joins David on Macro Musings to talk about his recent co-authored article, *Macroeconomics Research: Present and Past.* David and PJ also more broadly discuss the state of macroeconomics as a discipline, both in terms of research and pedagogy.   Transcript for this week’s episode.   PJ’s Twitter: @pjglandon PJ’s Kenyon profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Macroeconomics Research, Present and Past* by PJ Glandon, Ken Kuttner, Sandeep Mazumder, and Caleb Stroup   *Let’s Close the Gap: Updating the Textbook Treatment of Monetary Policy* by Jane Ihrig and Scott Wolla
10/30/202352 minutes, 47 seconds
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Ed Nelson on the Life, Work, and Legacy of Bennett McCallum

Ed Nelson is a senior advisor in the Monetary Affairs Division of the Board of Governors of the Federal Reserve System. Ed has also previously been a professor of economics at the University of Sydney and has worked at the St. Louis Federal Reserve Bank as well as the Bank of England. Most importantly, however, Ed was also a former student of, and co-author with, the late Bennett McCallum, and he rejoins David for this special live episode of Macro Musings to talk about Bennett McCallum’s life, his work, and his legacy within the field of monetary economics.     Check out the entirety of the Bennett McCallum Monetary Policy Conference!   Transcript for this week’s episode.   Ed’s website Ed’s Federal Reserve profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!
10/23/202341 minutes, 47 seconds
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Sam Hammond on AI, Techno-Feudalism, and the Future of the State

Sam Hammond is a senior economist at the Foundation for American Innovation and is non-resident fellow at the Niskanen Institute. Sam is also a previous guest of the show, and he rejoins Macro Musings to talk about artificial intelligence and the future of the state. Specifically, David and Sam discuss the current AI environment, how private AI may replace functions of the state, key moments in the techno-feudalistic future of AI, and more.   Transcript for this week’s episode.   Sam’s Twitter: @hamandcheese Sam’s FAI profile Sam’s blog   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *AI and Leviathan: The Institutional Economics of an Intelligence Explosion* by Sam Hammond   *AI and Leviathan: Preparing for Regime Change* by Sam Hammond   *AI and Leviathan: A Timeline of Our Techno-Feudalist Future* by Sam Hammond   *Attention is All You Need* by Ashish Vaswani et al.
10/16/202355 minutes, 40 seconds
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Marc Goldwein on the US Government Budget: Structure, Challenges, and Reform Strategies

Marc Goldwein is the Senior Vice President and Senior Policy Director for the Committee for a Responsible Federal Budget (CRFB), where he guides and conducts research on a wide array of topics related to fiscal policy and the federal budget. Marc joins Macro Musings to talk about the US government budget, its structure, its challenges, and its long-term trajectories. David and Marc also discuss the basics of government shutdowns and the budgetary process, how the most recent inflationary episode unfolded, how to fix the US budget over the long run, and a lot more.   Transcript for this week’s episode.   Last chance to register for the Bennett McCallum Monetary Policy Conference!   Marc’s CRFB profile Marc’s Twitter: @MarcGoldwein   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Government Shutdowns Q&A: Everything You Should Know* by the Committee for a Responsible Federal Budget   *Retirees Face a $17,400 Cut if Social Security Isn’t Saved* by the Committee for a Responsible Federal Budget   *Amid GOP Confusion, U.S. Braces for ‘First-ever Shutdown About Nothing’* by Jeff Stein
10/9/202353 minutes, 37 seconds
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Lev Menand and Josh Younger on *Money and the Public Debt: Treasury Market Liquidity as a Legal Phenomenon*

Lev Menand is an associate professor of law at Columbia University and Josh Younger is a senior policy advisor at the Federal Reserve Bank of New York and a lecturer at Columbia Law School. Lev and Josh also recently co-authored a paper titled, *Money and the Public Debt: Treasury Market Liquidity as a Legal Phenomenon.* They are also returning guests to Macro Musings, and rejoin the podcast to talk about this paper and its implications for the Treasury market. Lev, Josh, and David also discuss the transition from bank to market financing, whether an increasing level of debt is leading to more instability, the impact of recent regulations on the primary dealer system, how to restore the balance between public debt and money creation, and a lot more.   Transcript for this week’s episode.   Register now for the Bennett McCallum Monetary Policy Conference!   Josh’s Columbia Law profile Lev’s Columbia Law profile Lev’s Twitter: @LevMenand   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Money and the Public Debt: Treasury Market Liquidity as a Legal Phenomenon* by Lev Menand and Josh Younger   *The Fed Unbound: Central Banking in a Time of Crisis* by Lev Menand
10/2/20231 hour, 1 minute, 44 seconds
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Thomas Hoenig on Public Debt Sustainability and the Current State of the US Banking System

Thomas Hoenig is a distinguished senior fellow with the Mercatus Center at George Mason University, where he focuses on the long-term impacts of the politicization of financial services as well as the effects of government-granted privileges and market performance. He was formerly the vice chair of the FDIC from 2012 to 2018 and the 20 years prior to that, he was president of the Kansas City Federal Reserve Bank. Tom is also a returning guest to Macro Musings, and he rejoins to talk about the Treasury market, public debt sustainability issues, and the state of banking in the United States. David and Tom also discuss the history of Tom’s influence on the Jackson Hole Conference, the growing size of the US current account deficit, the Fed’s role as the primary Treasury market backstop, the dangers of risk-weighted capital regulation, and more.   Transcript for this week’s episode.   Register now for the Bennett McCallum Monetary Policy Conference!   Thomas’s Twitter: @tom_hoenig Thomas’s Mercatus profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Housing IS the Business Cycle* by Edward Leamer   *Understanding the Greenspan Standard* by Alan Blinder and Ricardo Reis   *Living with High Public Debt* by Serkan Arslanalp and Barry Eichengreen   *Has Financial Development Made the World Riskier?* by Raghuram Rajan   *Resilience Redux in the US Treasury Market* by Darrell Duffie   *Meet the Man Making Big Banks Tremble* by Jeanna Smialek and Emily Flitter
9/25/202359 minutes, 21 seconds
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Robert McCauley on Bond Market Crises and the International Lender of Last Resort

Robert McCauley is a senior fellow at the Global Development Policy Center at Boston University, an Associate Member of the Faculty of History at the University of Oxford, and was formerly at the Bank of International Settlements for 25 years and the New York Federal Reserve Bank for 14 years. Robert is also a returning guest to the show, and he rejoins Macro Musings to talk about his recent article titled, *Bond Market Crisis and the International Lender of Last Resort* David and Robert also discuss the basics of a bond market run, the policy reaction and implications of the 2020 “Dash for Cash”, the possible concerns with corporate bond facilities, and a lot more.   Transcript for this week’s episode.   Register now for the Bennett McCallum Monetary Policy Conference!   Robert’s Boston University profile Robert’s BIS archive   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Bond Market Crises and the International Lender of Last Resort* by Robert McCauley (coming soon)   *Manias, Panics, and Crashes: A History of Financial Crises, 8th Edition* by Robert Aliber, Charles Kindleberger and Robert McCauley   *Robert McCauley on the Global Domain of the Dollar and Threats to its Dominance* by the Macro Musings Podcast
9/18/20231 hour, 11 minutes, 37 seconds
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Joe Gagnon on Inflation Progress and the Path Ahead: Breaking Down Jerome Powell’s Jackson Hole Speech

Joe Gagnon is a senior fellow at the Peterson Institute for International Economics and was formerly a senior staffer at the Federal Reserve Board of Governors. Joe is also a returning guest to Macro Musings, and he rejoins the podcast to talk about Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium. Specifically, Joe and David talk about the future direction of r star, what current inflationary trends mean for the Phillips curve, the Fed’s commitment to a two percent inflation target, and a lot more.   Transcript for this week’s episode.   Register now for the Bennett McCallum Monetary Policy Conference!   Joe’s Twitter: @GagnonMacro Joe’s PIIE profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Low Inflation Bends the Phillips Curve Around the World* by Joe Gagnon, Kristin Forbes, and Christopher Collins   *Fed Chair Powell’s Message in Jackson Hole: Two Means Two* by David Wilcox   *Why the Era of Historically Low Interest Rates Could Be Over* by Nick Timiraos
9/11/202358 minutes, 40 seconds
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Nicholas Anthony on the Current Prospects and Legislative Developments Surrounding CBDC

Nicholas Anthony is a policy analyst at the Cato Institute’s Center for Monetary and Financial Alternatives and works on issues relating to financial privacy, cryptocurrencies, and the use of money in society. Nicholas joins Macro Musings to talk about central bank digital currencies (CBDCs) and the recent developments surrounding CBDCs at the Fed and in Congress. Specifically, David and Nicholas discuss the arguments for and against CBDCs, the preemptive, behavioral, and punitive applications of these currencies, who would benefit from the development of CBDCs, and a lot more.   Transcript for this week’s episode.   Nicholas’s Twitter @EconWithNick Nicholas’s Cato Institute profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths* by Nicholas Anthony and Norbert Michel   *CBDC Legislation Recap* by Nicholas Anthony   *House Hearing and FOIA Reveals Fed’s Stance on CBDC* by Nicholas Anthony   *The Fed’s Questionable CBDC Campaign* by Nicholas Anthony   *Who Really Benefits from CBDCs? It’s Not the Public* by Nicholas Anthony and Norbert Michel   *Questions of CBDC Cronyism Emerge as Fed Launches Pilot* by Nicholas Anthony   *Nigerians’ Rejection of Their CBDC is a Cautionary Tale for Other Countries* by Nicholas Anthony   *Nigeria’s CBDC Was Not Chosen. It Was Forced* by Nicholas Anthony   *The Risks of CBDCs: Why Central Bank Digital Currencies Shouldn’t Be Adopted* by Norbert Michel and Nicholas Anthony   *The Digital Euro: A Solution Seeking a Problem?* by Martin Arnold and Sam Fleming
9/4/202358 minutes, 28 seconds
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John Coates on *The Problem of Twelve: When a Few Financial Institutions Control Everything*

John Coates is a professor of law and economics and the deputy dean of the Harvard Law School. John is also the author of a new book titled, *The Problem of Twelve: When a Few Financial Institutions Control Everything,* and he joins Macro Musings to talk about it. David and John also discuss the basics and beginnings of index funds, how they may undermine capitalism, the issues with private equity, and a lot more.   Transcript for this week’s episode.   John’s Harvard Law School profile John’s publications archive   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *The Problem of Twelve: When a Few Financial Institutions Control Everything* by John Coates   *House Republicans Probe BlackRock, Vanguard on Their ESG Policies* by Steven Dennis   *BlackRock Offers a Vote to Retail Investors in its Biggest ETF* by Brooke Masters
8/28/20231 hour, 1 minute, 54 seconds
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Zac Gross on the Past, Present, and Future of Australian Monetary Policy

Zac Gross is a senior lecturer at Monash University and was formerly an economist at the Reserve Bank of Australia. Zac joins Macro Musings to talk about the Australian central bank and the recent review of its framework. Specifically, David and Zac also break down Australian monetary policy over the past few decades, the RBA’s yield curve control experiment, the future of its operating system, and a lot more.   Transcript for this week’s episode.   Zac’s Twitter: @ZacGross Zac’s website Zac’s Substack   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Assessing Australian Monetary Policy in the Twenty-First Century* By Isaac Gross and Andrew Leigh   *An RBA Fit for the Future* by Gordon de Brouwer, Renee Fry-McKibbin, and Carolyn Wilkins
8/21/202357 minutes, 8 seconds
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Larry White on Gold, Fiat, and Bitcoin: Determining the Ideal Monetary Standard

Larry White is a professor of economics at George Mason University and is the author of a new book titled, *Better Money: Gold, Fiat, or Bitcoin?* Larry is also a returning guest to Macro Musings, and he rejoins the podcast to discuss this book and the comparison among those monetary standards. David and Larry specifically discuss the bottom-up vs. top-down theories of money, the basics and functionality of a gold, bitcoin, and fiat standards, the future of money, and more.   Transcript for this week’s episode.   Larry’s Twitter: @lawrencehwhite1 Larry’s Mercatus profile Larry’s GMU profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Better Money: Gold, Fiat, or Bitcoin?* by Lawrence White   *Larry White on Stablecoins, Money Market Funds, and the History of Free Banking* by Macro Musings
8/14/20231 hour, 5 minutes, 14 seconds
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Ricardo Reis on the Macroeconomics of Financial Crises and the Recent Inflation Surge

Ricardo Reis is a professor of economics at the London School of Economics and is the co-author of a new book titled, *A Crash Course on Crises: Macroeconomic Concepts for Run-ups, Collapses, and Recoveries.* Ricardo is also a previous guest of Macro Musings and he rejoins the podcast to talk about his new book as well as his overall assessment of the inflation surge of the past few years. David and Ricardo specifically discuss what constitutes a bubble, the Eurozone crisis as a story of capital inflows and misallocation, shadow banking and systemic risk during the 2008 financial crisis, Ricardo’s view of the Phillips curve, and a lot more.   Transcript for this week’s episode.   Ricardo’s Twitter: @R2Rsquared Ricardo’s LSE profile Ricardo’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   *A Crash Course on Crises: Macroeconomic Concepts for Run-Ups, Collapses, and Recoveries* by Ricardo Reis and Markus Brunnermeier   *Ricardo Reis on Central Bank Swap Lines, Fiscal Sustainability, and Outlooks for Inflation* by Macro Musings
8/7/20231 hour, 1 minute, 41 seconds
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Macro Lit Review 4: Highlights from Mid-2023 with George Selgin

George Selgin is a senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute. George is also a frequent guest on Macro Musings, and he rejoins the podcast to talk about some of the recent developments in the monetary and financial policy space. Specifically, David and George discuss the history and present developments surrounding FedNow, the future of real-time payments, how to revise the Fed’s operating system, whether the Fed is currently delivering on a soft landing, and a lot more.   Transcript for this week’s episode.   George’s Twitter: @GeorgeSelgin George Cato Institute profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *George Selgin on False Dawn: The New Deal and the Promise of Recovery* by Macro Musings   *Getting Up From the Floor* by Claudio Borio   *Opening a Federal Reserve Account* by Julie Hill   *From Cannabis to Crypto: Federal Reserve Discretion in Payments* by Julie Hill   *Fiscal Arithmetic and the Global Inflation Outlook* by Peder Beck-Friis and Richard Clarida
7/31/202358 minutes, 6 seconds
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Bryan Cutsinger and Louis Rouanet on the Politics and Dynamics of Hyperinflation in Revolutionary France

Bryan Cutsinger is an assistant professor of economics at Angelo State University and Louis Rouanet is an assistant professor of economics at the University of Texas, El Paso. Bryan and Louis join Macro Musings to talk about the French Revolution, France’s public finances, its bout with hyperinflation, and finally, the implications of this experience for macroeconomic theory today. Specifically, David, Bryan and Louis also discuss the creation and widespread dissemination of assignats, the emergence guillotine-backed currency in France, the state vs. market theories of money, and a lot more.   Transcript for this week’s episode.   Bryan’s Twitter: @BryanPCutsinger Bryan’s website Bryan’s ASU profile   Louis’s Twitter: @LouisROUANET Louis’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Assignats or Death: The Politics and Dynamics of Hyperinflation in Revolutionary France* by Bryan Cutsinger, Louis Rouanet, and Joshua Ingber   *Macroeconomics Features of the French Revolution* by Thomas Sargent and Francois Velde
7/24/202354 minutes, 47 seconds
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Jesus Fernandez-Villaverde on Demographic Trends, Recent Macroeconomic Developments, and AI’s Implications for Economic Growth

Jesus Fernandez-Villaverde is a professor of economics at the University of Pennsylvania and is the co-director of the Business, Economic, and Financial History Project at the Wharton School of Business. Jesus is also a returning guest to the podcast, and he rejoins Macro Musings to talk about recent macroeconomic developments, the demographic issues facing the world, and AI’s implications for economic growth. Specifically, David and Jesus also discuss whether we needed the fiscal and monetary stimulus of 2021, the European inflation story, South Korea as a case study for global demographic trends, how quantum computing will may impact macroeconomics in the future, and more.   Transcript for this week’s episode.   Jesus’s UPenn profile Jesus’s NBER archive   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *The Demographic Future of Humanity: The Trends* by Jesus Fernandez-Villaverde   *The Demographic Future of Humanity: Economic Challenge* by Jesus Fernandez-Villaverde   *The Demographic Future of Humanity: Social Change* by Jesus Fernandez-Villaverde   *Dynamic Programming on a Quantum Annealer: Solving the RBC Model* by Jesus Fernandez-Villaverde and Isaiah Hull
7/17/202357 minutes, 11 seconds
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Chris Conlon on the Post-COVID Inflation Surge and the Greedflation Narrative

Chris Conlon is an associate professor of economics at the NYU Stern School of Business where he focuses on industrial organization economics and econometrics. Chris joins David on Macro Musings to help shed light on the 2021-2023 inflation surge from the perspective of an IO economist. Specifically, David and Chris discuss the great markup debate within IO economics, the shaky foundation of greedflation, the cost anticipation story of higher prices, and more.   Transcript for this week’s episode.   Chris’s Twitter: @conlon_chris Chris’s website Chris’s NYU profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Rising Markups, Rising Prices?* by Chris Conlon, Nathan Miller, Tsolmon Otgon, and Yi Yao   Chris’s Twitter thread on the recent inflationary episode   *The Rise of Market Power and the Macroeconomics Implications* by Jan De Loecker, Jan Eeckhout, and Gabriel Unger   *How Much Have Record Corporate Profits Contributed to Recent Inflation?* by Andrew Glover, Jose Mustre-del-Rio, Alice von Ende-Becker
7/10/202359 minutes, 38 seconds
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Tim Lee on the Present and Future of AI and its Implications for Policy

Tim Lee is an independent journalist who formerly worked for the Washington Post, Vox, and Ars Technica, where he covered tech policy, blockchain issues, the future of transportation, and the economy. Tim currently produces the newsletter, Understanding AI, and is also a returning guest to Macro Musings. He rejoins the podcast to talk about AI, automation, and its implications for the macroeconomy and policy. Specifically, David and Tim also discuss the singularism vs physicalism debate, the possible threats posed by AI, how the regulatory landscape will be affected by AI, and a lot more.   Transcript for this week’s episode.   Tim’s Twitter: @binarybits Tim’s newsletter: Understanding AI   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!                                                       Related Links:   *The AI Safety Debate is Focusing on the Wrong Threats* by Tim Lee   *Congress Shouldn’t Rush Into Regulating AI* by Tim Lee   *The Death of Self-Driving Cars is Greatly Exaggerated* by Tim Lee   *I Ordered Robot Takeout on Two Campuses with Wildly Different Results* by Tim Lee   *Why I’m Not Worried About AI Causing Mass Unemployment* by Tim Lee   *US Air Force Says it Did Not Run Simulation in Which AI Drone ‘Killed its Operator’* by Tom Vanden Brook and Kim Hjelmgaard   *Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity* by Daron Acemoglu and Simon Johnson
7/3/202355 minutes, 19 seconds
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Steven Kamin on the Global Influence of Fed Policy and the U.S. Dollar

Steven Kamin is a senior fellow at the American Enterprise Institute and previously was the director of the Division of International Finance at the Federal Reserve Board. Steve joins David on Macro Musings to talk about the US dollar and its implications for policy and the economy. Specifically, David and Steven discuss the effects of Fed policy on emerging markets, the factors that are driving a higher global equilibrium real interest rate, how to reconcile the domestic and international impacts of Fed policy, and more.   Transcript for this week’s episode.   Steven’s Twitter: @steven_kamin Steven’s AEI profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Will the Strong Dollar Trigger a Global Recession?* by Steven Kamin   *How Do Rising US Interest Rates Affect Emerging and Developing Economies? It Depends* by Steven Kamin, Carlos Arteta, and Franz Ulrich   *Are Higher US Interest Rates Always Bad News for Emerging Markets?* by Steven Kamin, Jasper Hoek, and Emre Yoldas
6/26/202356 minutes, 35 seconds
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Chris Hughes on the Legacy of Arthur Burns and its Implications for Macro Policy Today

Chris Hughes is a senior fellow at the Institute on Race, Power, and Political Economy at The New School, and he is also the co-founder of the Economic Security Project and a senior advisor at the Roosevelt Institute. Previously, he was also the publisher of The New Republic and is a co-founder of Facebook. Chris joins Macro Musings to talk about his work on Arthur Burns’ tenure as Fed Chair and the lessons we can learn from it as applied to today’s inflation experience. Specifically, David and Chris also discuss Arthur Burns’ view of the economy and inflation, how his perspective on business psychology impacted these views, Burns’ view of fiscal and industrial policy as a tool for combating inflation, and a lot more.   Transcript for this week’s episode.   Chris’s Twitter: @chrishughes Chris’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Rethinking Arthur Bruns, the “Worst” Fed Chair in History* by Chris Hughes   *Digital Dollars: Critical Design Choices and Effects of a Central Bank Digital Currency* by Chris Hughes
6/19/202354 minutes, 27 seconds
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Peter Stella on the Quasi-Fiscal Implications of Central Bank Crisis Intervention

Peter Stella is the former head of the IMF’s Central Banking Division and has researched and written extensively on safe assets, collateral, and central bank operations. He now hosts the website, Central Banking Archaeology and continues to consult with the IMF on central bank balance sheet issues. Peter is also a returning guest to the podcast, and he rejoins Macro Musings to talk about the quasi-fiscal implications of central bank crisis intervention over the past few years. David and Peter also discuss the losses on the Fed’s balance sheet, using market value versus the par value of debt, the Fed’s debt management issues with mortgage backed securities, and more.   Transcript for this week’s episode.   Peter’s Twitter: @Stellar_Consult Peter’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Quasi-Fiscal Implications of Central Bank Crisis Interventions: Case Studies* by Peter Stella, John Hooley, and Claney Lattie   *Do Central Banks Need Capital?* by Peter Stella   *Exiting Well* by Peter Stella
6/12/202350 minutes, 19 seconds
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Christina Skinner on Central Bank Digital Currency as New Public Money

Christina Skinner is a legal scholar at the Wharton Business School at the University of Pennsylvania and was formerly legal counsel to the Bank of England. Christina is also a returning guest to the podcast, and she rejoins Macro Musings to talk about central bank digital currency and its legal implications for the state, individuals, and the Fed itself. David and Christina also discuss recent developments in CBDC policy rhetoric, the privacy issues surrounding CBDC, the potential interest bearing nature of CBDC, and a lot more.   Transcript for this week’s episode   Christina’s Twitter: @CParaSkinner Christina’s Wharton profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Central Bank Digital Currency as New Public Money* by Christina Parajon Skinner   *A New Coin of the Realm? Central Bank Digital Currency as New Public Money* by Christina Parajon Skinner (coming soon)
6/5/20231 hour, 10 seconds
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Gianluca Benigno on the Basics and Policy Functionality of R** and the Dollar’s Imperial Circle

Gianluca Benigno is a professor of economics at the University of Lausanne and was formerly a senior staffer and economist at the Federal Reserve Bank of New York, an economist at the Bank of England, and worked at the London School of Economics. Gianluca joins Macro Musings to talk about financial conditions in r**, his work on *The Dollar’s Imperial Circle,* and more. David and Gianluca also discuss the importance of liquidity in a New Keynesian framework, the origins and purpose of the Global Supply Chain Pressure Index, the “Global Financial Resource Curse,” and a lot more.   Transcript for this week’s episode   Gianluca’s Twitter: @BenignoGianluca Gianluca’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *The Dollar’s Imperial Circle* by Gianluca Benigno, Ozge Akinci, Serra Pelin, and Jon Turek   *The Financial (In)Stability Real Interest Rate, R*** by Gianluca Benigno, Ozge Akinci, Marco Del Negro, and Albert Queralto   *Interest, Reserves, and Prices* by Gianluca Benigno and Pierpaolo Benigno   *The Financial Resource Curse* by Gianluca Benigno and Luca Fornaro   *The Global Financial Resource Curse* by Gianluca Benigno, Luca Fornaro and Martin Wolf
5/29/202349 minutes
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Dan McDowell on *Bucking the Buck: US Financial Sanctions and the International Backlash Against the Dollar*

Dan McDowell is an associate professor of political science at Syracuse University, and he is the author of a new book titled, *Bucking the Buck: US Financial Sanctions and the International Backlash Against the Dollar.* Dan joins Macro Musings to talk about this new book and the prospects for de-dollarization around the world. David and Dan also discuss the mechanics and effectiveness of financial sanctions, the renminbi as a rival to the dollar, Russia and Turkey as case studies, and more.   Transcript for this week’s episode   Dan’s Twitter: @daniel_mcdowell Dan’s website Dan’s Syracuse University profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Bucking the Buck: US Financial Sanctions and the International Backlash against the Dollar* by Dan McDowell   *What’s Driving Dollar Doomsaying?* by Paul Krugman   *Renminbi’s Share of Trade Finance Doubles Since Start of Ukraine War* by Hudson Lockett and Cheng Leng
5/22/202355 minutes, 14 seconds
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Jeanna Smialek on *Limitless: The Federal Reserve Takes on a New Age of Crisis*

Jeanna Smialek is a reporter who covers the Federal Reserve and the economy for the New York Times, and is the author of a new book titled, *Limitless: The Federal Reserve Takes On a New Age of Crisis.* Jeanna is also a returning guest to Macro Musings and rejoins the podcast to talk about her book and its implications for the future of the Federal Reserve system. David and Jeanna also discuss the credit allocation vs. liquidity support debate, the Fed’s definition of price stability, the Bank Term Funding Program, and a lot more.   Transcript for this week’s episode   Jeanna’s Twitter: @jeannasmialek Jeanna’s New York Times profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *Limitless: The Federal Reserve Takes on a New Age of Crisis* by Jeanna Smialek
5/15/202351 minutes, 20 seconds
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Nathan Tankus on the Future of MMT and How to Avoid U.S. Debt Default

Nathan Tankus is a popular writer for a newsletter titled, *Notes on the Crises* and is the research director of the Modern Money Network. Nathan is also a returning guest to Macro Musings, and he rejoins the podcast to talk about modern monetary theory and the debt ceiling. Specifically, David and Nathan discuss the future of MMT, the case for minting the trillion dollar coin, the prospects of issuing Federal Reserve securities, the history of the Fed’s operating procedures, and a lot more.   Transcript for this week’s episode   Nathan’s Twitter: @NathanTankus Nathan’s Substack, Notes on the Crises Nathan’s Modern Money Network profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Join the Macro Musings mailing list! Check out our new Macro Musings merch!   Related Links:   *The New Monetary Policy: Reimagining Demand Management and Price Stability in the 21st Century* by Nathan Tankus   *Federal Reserve Issued Securities: Not Such A Crazy Idea After All* by Nathan Tankus   *The Federal Reserve’s Monetary Policy Operating Procedures Have Come Full Circle: What Does That Mean for the Post-SVB FOMC Meeting?* by Nathan Tankus   *An MMT Response on What Causes Inflation* by Nathan Tankus, Rohan Grey, and Scott Fulwiler   *Issues Raised by the Credit Crunch and Global Recession* by Janet Yellen
5/8/20231 hour, 8 minutes, 21 seconds
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Brian Sack on the Fed’s Balance Sheet and How to Improve the Floor Operating System

Brian Sack was recently the Director of Global Economics at the D.E. Shaw Group, and prior to that, he was the manager of the System Open Market Account or SOMA and the head of the Markets Group at the New York Federal Reserve bank, where he managed the Fed’s balance sheet. Brian joins Macro Musings to talk about the central bank’s balance sheet, its operating system, and his work at the Treasury Borrowing Advisory Committee. Specifically, David and Brian discuss the current state of the Fed’s balance sheet, Brian’s theory of QE, how to improve the effectiveness of the floor system, and a lot more.   Transcript for the episode can be found here.   Brian’s LinkedIn profile Brian’s Google Scholar archive   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Monetary Policy with Abundant Liquidity: A New Operating Framework for the Federal Reserve* by Joseph Gagnon and Brian Sack   *Monetary Policy Alternatives at the Zero Lower Bound: An Empirical Assessment* by Ben Bernanke, Vincent Reinhart, and Brian Sack
5/1/202347 minutes, 33 seconds
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Mark Calabria on *Shelter From the Storm: How a COVID Mortgage Meltdown Was Averted*

Mark Calabria was the Director of the Federal Housing Finance Agency and prior to that, he was formerly a chief economist for Vice President Mike Pence. Mark is also a previous guest of Macro Musings, and he rejoins the podcast to talk about his new book titled, Shelter From the Storm: How a COVID Mortgage Meltdown Was Averted. Specifically, David and Mark discuss Mark’s time as the director of the Federal Housing Finance Agency, the relief programs his agency ushered through during the peak of the COVID crisis, the history and handling of Fannie and Freddie, and a lot more.   Transcript for the episode can be found here.   Mark’s Twitter: @MarkCalabria Mark’s Cato Institute profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Shelter From the Storm: How a COVID Mortgage Meltdown Was Averted* by Mark Calabria
4/24/202355 minutes, 20 seconds
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BONUS: George Hall on Financing World War II and Managing Post-War Debt

George Hall is a professor of economics at Brandeis University, and was formerly an economist at the Chicago Federal Reserve Bank. In this bonus segment from the previous conversation, George rejoins the podcast to talk about how the US handled the surge in debt resulting from World War II, how COVID changed government financing, his thoughts on the debt ceiling crisis, and more.   Transcript for the episode can be found here.   George’s Twitter: @George_J_Hall George’s Brandeis profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Brief History of US Debt Limits Before 1939* by George Hall and Thomas Sargent   *Financing Big US Federal Expenditures Surges: COVID-19 and Earlier US Wars* by George Hall and Thomas Sargent   *Debt and Taxes in Eight U.S. Wars and Two Insurrections* by George Hall and Thomas Sargent
4/19/202319 minutes, 15 seconds
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George Hall on the History of the U.S. National Debt and Government Financing

George Hall is a professor of economics at Brandeis University, and was formerly an economist at the Chicago Federal Reserve Bank. George has written widely on the history of U.S. public finance, and he joins Macro Musings to talk about the history of the U.S. national debt, including the most recent surge resulting from the pandemic. David and George also discuss how a government goes about funding itself, two different models of expenditure financing, the Revolutionary War and Civil War as case studies, and more.   Transcript for the episode can be found here.   George’s Twitter: @George_J_Hall George’s Brandeis profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Financing Big US Federal Expenditures Surges: COVID-19 and Earlier US Wars* by George Hall and Thomas Sargent   *Debt and Taxes in Eight U.S. Wars and Two Insurrections* by George Hall and Thomas Sargent   *Three World Wars: Fiscal-monetary Consequences* by George Hall and Thomas Sargent
4/17/202349 minutes, 55 seconds
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Bill Nelson on the Fed’s Discount Window Lending, the Overnight Reverse Repo Facility, and the Shifting Size of the Fed’s Balance Sheet

Bill Nelson is a chief economist and executive vice president of the Bank Policy Institute and was previously a deputy director of the Division of Monetary Affairs at the Federal Reserve Board, where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. He also worked closely with the BIS working groups on the design of liquidity regulations and is a previous guest of the podcast. Bill rejoins Macro Musings to talk about the Fed’s balance sheet, and in particular, the impact that the Fed’s response to the recent banking turmoil has had on its size, as well as the role being played by the Overnight Reverse Repo Facility. David and Bill also discuss the changes in collateral treatment brought about by the banking crisis, the invocation of 13(3) for the Bank Term Funding Program, the recent volume of discount window lending, and a lot more.   Transcript for the episode can be found here.   Bill’s BPI profile BPI’s Twitter: @bankpolicy   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Why is the Federal Reserve Abetting a Drain of Deposits from Banks?* by Bill Nelson and Greg Baer   *I Don’t Know Why She Swallowed a Fly* by Bill Nelson   *The Federal Reserve’s Balance Sheet: Costs to Taxpayers of Quantitative Easing* by Bill Nelson and Andy Levin
4/10/202354 minutes, 12 seconds
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Kate Judge and Peter Conti-Brown on the Lessons Learned from the 2023 Banking Panic

Kate Judge is a professor of law at Columbia Law School and the editor of the Journal of Financial Regulation, and Peter Conti-Brown is an associate professor of financial regulation and the co-director of the Wharton Initiative on Financial Policy and Regulation at the University of Pennsylvania. Both are also returning guests to the podcast, and they rejoin Macro Musings to talk about the banking panic of 2023 and the lessons learned so far. Specifically, Kate, Peter, and David discuss how the scene was set for this recent banking crisis, the quality of the policy response, how to reform the banking system moving forward, and a lot more.   Transcript for the episode can be found here.   Kate’s Twitter: @ProfKateJudge Kate’s Columbia Law profile   Peter’s Twitter: @PeterContiBrown Peter’s UPenn profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Towards an Administrative Law of Central Banking* by Peter Conti-Brown, Yair Listokin, and Nicholas Parrillo   *Money Market Funds Swell by More Than $286bn Amid Deposit Flight* by Brooke Masters, Marriet Clarfelt, and Kate Duguid   *’The Fed Has Mishandled This About 7 Different Ways’: SVB Rescue Sparks Backlash* by Victoria Guida   *Scrap the Bank Deposit Insurance Limit* by Lev Menand and Morgan Ricks
4/3/202356 minutes, 57 seconds
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Brian Riedl on the Current and Future Outlook for US Public Finance and Budget Reform

Brian Riedl is a senior fellow at the Manhattan Institute where he focuses on budget, tax, and economic policy issues. Previously, he worked for six years as chief economist for Senator Rob Portman of Ohio and as staff director of the Senate Finance Subcommittee on Fiscal Responsibility and Economic Growth. He also served as director of budget and spending for Marco Rubio’s presidential campaign and was the lead architect of the 10-year deficit reduction plan for Mitt Romney’s presidential campaign. Brian joins Macro Musings to talk about the outlook of US public finance and the tough choices ahead. Specifically, David and Brian also discuss the surging US debt to GDP ratio, the shortfalls of Republican and Democratic plans for budget reform, Brian’s preferable policy path forward, and much more.   Transcript for the episode can be found here.   Brian’s Twitter: @Brian_Riedl Brian’s Manhattan Institute profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Biden’s Promises on Social Security and Medicare Have No Basis in Reality* by Brian Riedl   *Biden Is Set to Detail Nearly $3 Trillion in Measures to Reduce Deficits* by Jim Tankersley
3/27/202353 minutes, 26 seconds
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Steven Kelly on the Silicon Valley Bank Collapse and Its Implications for Financial Policy

Steven Kelly is a senior research associate at the Yale Program on Financial Stability and is a previous guest of the podcast. Steven rejoins Macro Musings to talk about the recent bank collapses at Silicon Valley Bank (SVB) and Signature, the government response, and what this means for financial stability policy in the present and future. David and Steven also discuss the role that interest rate risk and macro policy played in SVB’s failure, the debate over the systemic nature of this crisis, the implementation and use of the Bank Term Funding Program, and more.   Transcript for the episode can be found here.   Steven’s Twitter: @StevenKelly49 Steven’s Substack: Without Warning   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   Steven Kelly Twitter thread on SVB   Daniela Gabor Twitter thread on SVB   *Was This a Bailout? Skeptics Descend on Silicon Valley Bank Response* by Jeanna Smialek and Alan Rappeport   *Monetary Tightening and U.S. Bank Fragility in 2023: Mark-to-Market Losses and Uninsured Depositor Runs?* by Erica Jiang, Gregor Matvos, Tomasz Piskorski, and Amit Seru
3/20/202352 minutes, 23 seconds
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Derek Tang on the Present and Future Landscape for Fed Policy and Politics

Derek Tang is the CEO and co-founder of LH Meyer, and is part of the research team based in Washington, D.C. where he forecasts Fed policy developments, provides bespoke policy analysis to institutional investors, and also closely monitors and forecasts the Fed’s balance sheet. Derek joins David on Macro Musings to talk about Fed policy, Fed politics, and what to expect in 2023 and 2024. Specifically, David and Derek discuss numerous personnel changes at the Fed, the future of the central bank’s balance sheet, the upcoming Congressional agenda for the Fed, what the next framework review has in store, and more.   Transcript for the episode can be found here.   Derek’s Twitter: @macroderek Derek’s LH Meyer bio   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *The Federal Reserve’s Current Framework for Monetary Policy: A Review and Assessment* by Janice Eberly, James Stock, and Jonathan Wright   *The Federal Reserve’s Balance Sheet: Costs to Taxpayers of Quantitative Easing* by Andy Levin and Bill Nelson
3/13/202352 minutes, 3 seconds
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Joey Politano on Fed Policy, Inflation, and the Current State of the US Economy

Joey Politano is an economist and commentator who writes regularly on his Substack newsletter titled, Apricitas Economics. Joey is also a previous guest of the podcast, and he rejoins Macro Musings to talk about the state of the US economy, inflation, Fed policy, and much more. Specifically, David and Joey discuss the results of the Fed’s ongoing rate hikes, the narrative that higher rates may lead to higher inflation, conducting monetary policy in a supply constrained economy, and more.   Transcript for the episode can be found here.   Joey’s Twitter: @JosephPolitano Joey’s Substack: Apricitas Economics   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *America’s 2022 Slowdown* by Joey Politano   *The US Labor Market Was Stronger Than We Thought* by Joey Politano
3/6/202353 minutes, 10 seconds
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Peter Conti-Brown on the Legal and Regulatory Issues Facing the Fed and Financial Markets

Peter Conti-Brown is an associate professor of financial regulation and legal studies at the University of Pennsylvania and is a non-resident fellow at the Brookings Institution. Peter is also a returning guest to Macro Musings, and rejoins the podcast to talk about some of the big legal and regulatory issues facing the financial and monetary policy space today. Specifically, David and Peter discuss the debt ceiling crisis, Fed master accounts, the current state of cryptocurrency, the implications of the Federal Reserve Accountability Act, and the most significant court cases facing the central bank today.   Transcript for the episode can be found here.   Peter’s Twitter: @PeterContiBrown Peter’s UPenn profile The Wharton Initiative on Financial Policy and Regulation’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *The Contingent Origins of Financial Legislation* by Peter Conti-Brown and Brian Feinstein   *Let Crypto Burn* by Stephen Cecchetti and Kim Schoenholtz   *Mint the Coin? Buy Back Bonds? 7 ‘Gimmicks’ for Dodging the Debt Limit* by Jeff Stein   Peter Conti-Brown’s Bonus Segment with David Beckworth
2/27/202352 minutes, 31 seconds
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David Wilcox on the Debt Ceiling Crisis and the Crippling Costs of Default

David Wilcox is a non-resident senior fellow at the Peterson Institute for International Economics and is the Director of Economic Research at Bloomberg Economics. Previously, David served for many years on the staff of the Federal Reserve Board, as deputy director from 2001 to 2011 and as director from 2011 to 2018 of the Division of Research and Statistics. In the latter role, he functioned as the chief economist of the division, a senior advisor to three successive chairs of the board, and the division leader for strategic direction as well as chief manager. David joins Macro Musings to talk about a recent article he wrote titled, *The Cost of the US Going Over the Fiscal Cliff is Trauma, Then Unending Pain.* David and David also discuss the debt ceiling issue more broadly, including the severity and timing of a technical default, the two big economic shocks that would result from a default, the possible solutions to pursue in the face of the this debacle, and more.   Transcript for the episode can be found here.   David Wilcox’s Twitter: @D_W_Wilcox David Wilcox’s PIIE profile   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *The Cost of US Going Over Fiscal Cliff Is Trauma Then Unending Pain* by David Wilcox   *Fiscal Policy Under Low Interest Rates* by Olivier Blanchard   *Mint the Coin? Buy Back Bonds? 7 ‘Gimmicks’ for Dodging the Debt Limit* by Jeff Stein
2/20/202351 minutes, 58 seconds
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Julie Hill on the History and Recent Developments of Fed Master Accounts

Julie Hill is a professor of law at the University of Alabama’s School of Law and she specializes in the study of the regulation of financial institutions. Julie also has a new paper out titled, *Opening a Federal Reserve Account,* and she joins Macro Musings to talk about the history and recent developments surrounding Fed master accounts. David and Julie also discuss the legal basis for these accounts and the numerous case studies surrounding them, including the Narrow Bank, Reserve Trust, Custodia, and more.   Transcript for the episode can be found here.   Julie’s Twitter: @ProfJulieHill Julie’s Alabama Law profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Opening a Federal Reserve Account* by Julie Hill
2/13/20231 hour, 12 seconds
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Macro Lit Review 3: Highlights from Early 2023 with George Selgin

George Selgin is a senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute. George is also a frequent guest on Macro Musings and he rejoins the podcast to talk about some recent developments in the monetary and fiscal policy space. Specifically, David and George discuss new narratives around shadow banking and the financial crisis, the fiscal cost of large central bank balance sheets, the return of secular stagnation, and a lot more.   Transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *A Monetary Policy Primer: Parts 1-12* by George Selgin   *Why Shadow Banking Didn’t Cause the Financial Crisis* by Norbert Michel   *The Federal Reserve’s Balance Sheet: Costs to Taxpayers of Quantitative Easing* by Andy Levin and Bill Nelson   *The Monetary Executive* by Christina Parajon Skinner   *Secular Stagnation is Not Over* by Olivier Blanchard   *The Hard Road to a Soft Landing: Evidence from a (Modestly) Nonlinear Structural Model* by Randal Verbrugge and Saeed Zaman   *Brazil and Argentina to Start Preparations for a Common Currency* by Michael Stott and Lucinda Elliott   *Floor Systems for Implementing Monetary Policy: Some Unpleasant Fiscal Arithmetic* by Aleksander Berentsen, Christopher Waller, and Alessandro Marchesiani   *Fallen Heroes: Central Banks Face Credibility Crisis as Losses Pile Up* by Johanna Treeck   *SNB Will Shrink Balance Sheet After Record Loss, Citigroup Says* by Bastian Benrath   *George Selgin on False Dawn: The New Deal and the Promise of Recovery* by Macro Musings
2/6/202349 minutes, 32 seconds
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Michael Strain on Averting the Looming Debt Ceiling Disaster

Michael Strain is the Director of Economic Policy Studies and the Arthur F. Burns Scholar in Political Economy at the American Enterprise Institute and is a returning guest to Macro Musings. Michael rejoins the podcast to talk about the looming debt ceiling crisis and his recent article on the issue titled, *Averting a Debt-Ceiling Disaster.* David and Michael specifically discuss the background, history and recent events leading up to the current crisis, how to impose fiscal discipline in a low interest rate world, solutions the US government could pursue, and more.   Transcript for the episode can be found here.   Michael’s Twitter: @MichaelRStrain Michael’s website Michael’s AEI profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Averting a Debt-Ceiling Disaster* by Michael Strain     *House Republicans Prepare Emergency Plan for Breaching Debt Limit* by Jeff Stein, Leigh Ann Caldwell, and Theodoric Meyer   *Extraordinary Measures* by the Bipartisan Policy Center
1/30/202347 minutes, 50 seconds
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John Roberts on Macroeconomic Modeling at the Fed, Makeup Policy, and the Future of FAIT

John Roberts is a 36-year veteran of the Federal Reserve Board and mostly recently was the Deputy Associate Director in the Division of Research and Statistics, overseeing the board’s domestic macroeconomic modeling efforts. From 2017-2019, John also served as a special advisor to Federal Reserve Governor Lael Brainard, where his responsibilities includes preparation of speeches, providing advice on monetary policy, macroeconomic forecasting, and regulatory attending FOMC meetings. John joins Macro Musings to talk about his time at the Fed, macroeconomic modeling at the institution, his work on the zero lower bound, and current Fed policy. Specifically, David and John also discuss the art of interpreting the Fed’s Summary of Economic Projections, the future of modeling for policymakers at the Fed, the state of FAIT at the central bank, and a lot more.   Transcript for the episode can be found here.   John’s blog John’s paper archive   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Monetary Policy in a Low Interest Rate World* by Michael Kiley and John Roberts   *Monetary Policy Strategies for a Low-Rate Environment* by Ben Bernanke, Michael Kiley, and John Roberts   *Unconventional Monetary Policy According to HANK* by Eric Sims, Jing Cynthia Wu, & Ji Zhang
1/23/202355 minutes, 37 seconds
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Paul Tucker on *Global Discord: Values and Power in a Fractured World Order*

Paul Tucker is a 33-year veteran of the Bank of England, where among other positions, he served as both a member and deputy governor of the Monetary Policy Committee. Currently, Paul is a research fellow at the Mossavar-Rahmani Center for Business and Government at Harvard. He is also a returning guest to the podcast, and rejoins Macro Musings to talk about his new book, *Global Discord: Values and Power in a Fractured World.* Specifically, David and Paul also discuss China’s push for reserve currency status, how to sell international legitimacy to the general public, the geopolitical advantage of trade deals, and much more.   Transcript for the episode can be found here.   Paul’s Harvard profile Paul’s website   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Global Discord: Values and Power in a Fractured World Order* by Paul Tucker   *Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State* by Paul Tucker   *Quantitative Easing, Monetary Policy Implementation, and the Public Finances* by Paul Tucker   *Biden Needs Allies to Keep China and Russia in Check. Here’s How to Do it.* by Sebastian Mallaby
1/16/202358 minutes, 13 seconds
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Victoria Guida on Developments at the Federal Reserve and in Financial Regulation

Victoria Guida is an economics reporter for Politico where she covers monetary policy and financial regulatory policy. Victoria is also a returning guest to Macro Musings, and she rejoins the podcast to talk about the big developments at the Fed and in the financial regulatory policy space in 2022 and what we can expect in 2023. Specifically, David and Victoria discuss personnel changes and trading scandals at the Fed, the debate surrounding Fed Master Accounts, how to improve the liquidity of the Treasury market, and a lot more.   Transcript for the episode can be found here.   Victoria’s Politico profile Victoria’s Twitter: @vtg2   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Victoria Guida on the Politics of Monetary Policy* by the Macro Musings podcast
1/9/202355 minutes, 8 seconds
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Martin Chorzempa on China’s Cashless Revolution and the Rise of Super Apps

Martin Chorzempa is a senior fellow with the Peterson Institute for International Economics and is the author of a new book titled, *The Cashless Revolution: China’s Reinvention of Money and the End of America’s Domination of Finance and Technology.* Martin joins Macro Musings to talk about this book as well as the history of Chinese fintech development, the basics of super apps in China, challenges to the Chinese fintech revolution, and more.   Transcript for the episode can be found here.   Martin’s PIIE profile Martin’s Twitter: @ChorzempaMartin   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *The Cashless Revolution: China’s Reinvention of Money and the End of America’s Domination of Finance and Technology* by Martin Chorzempa   *Letter From Apple Supplier Foxconn’s Founder Prodded China to Ease Zero-Covid Rules* by Keith Zhai and Yang Jie
1/2/202359 minutes, 29 seconds
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Heather Long, Ryan Avent, and Cardiff Garcia on Pandemic Reflections and Economic Predictions for the Future

For this special end of the year edition of Macro Musings, Heather Long, Ryan Avent, and Cardiff Garcia rejoin the podcast to reflect on the biggest economic surprises and stories of the past few years, while giving their outlook and predictions for the future. Heather Long is an editorial writer and columnist for the Washington Post, Ryan Avent is the trade and international economic editor for the Economist Magazine, and Cardiff Garcia is a veteran journalist for the Financial Times and NPR as well as the host of the New Bazaar podcast and the co-founder of Bazaar Audio. Specifically, this returning panel of guests discuss the major economic themes throughout the pandemic, the most overrated and underreported stories that have dominated the headlines over the past few years, what issues are primed for prominence within the next decade, and a lot more.     Transcript for the episode can be found here.   Support the podcast by making a donation during this holiday season!   Heather’s Washington Post profile Heather’s Twitter: @byHeatherLong   Ryan’s Economist profile Ryan’s Twitter: @ryanavent   Cardiff’s Twitter: @CardiffGarcia Bazaar Audio’s website   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Measuring Monetary Policy: the NGDP Gap* by David Beckworth   *Danger Zone: The Coming Conflict with China* by Hal Brands and Michael Beckley   *David Beckworth on the Facts, Fears, and Functionality of NGDP Level Targeting* by the Macro Musings Podcast   *Ryan Avent, Cardiff Garcia, and Heather Long on Lessons from the Great Recession* by the Macro Musings Podcast
12/26/202254 minutes, 13 seconds
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Tomas Hirst on the State of ECB Policy and the Eurozone Economy

Tomas Hirst is a macro analyst in the Strategy and Allocation division at LMI and formerly worked at Credit Sights, an independent fixed income research company, where he led the European strategy team covering Euro and sterling credit markets. Prior to that, he also worked at Bloomberg and the World Economic Forum in Geneva. Tomas joins David on Macro Musings to talk about the Eurozone economy, the ECB, and the future of the Euro project. Specifically, David and Tomas discuss the macroeconomic state of post-pandemic Europe, the rationale behind the ECB’s rate hikes, the inflation expectations conundrum within the Eurozone, and more.   Transcript for the episode can be found here.   Support the podcast by making a donation during this holiday season!   Tomas’s blog Tomas’s Twitter: @tomashirstecon   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *The ECB’s New Inflation Target One Year On* by Ursel Baumann, Christophe Kamps, and Manfred Kremer
12/19/202248 minutes, 12 seconds
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Joe Gagnon on *25 Years of Excess Unemployment* and the Phillips Curve Debate

Joe Gagnon is a senior fellow at the Peterson Institute for International Economics and was formerly a senior staffer at the Federal Reserve Board of Governors. Joe is also a returning guest to the podcast, and he rejoins Macro Musings to take a look back on the past few years and to discuss his new paper on excess unemployment over the past 25 years. Specifically, David and Joe also discuss the movement of the natural rate of unemployment over time, alternative explanations for the flattening of the Phillips curve, policy implications for the Fed moving forward, and more.   Transcript for the episode can be found here.   Support the podcast by making a donation during this holiday season!   Joe’s PIIE profile Joe’s Twitter: @GagnonMacro   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *25 Years of Excess Unemployment in Advanced Economies: Lessons for Monetary Policy* by Joseph Gagnon and Madi Sarsenbayev   *Economists are Slightly Better at Predicting Inflation Than Consumers* by Joseph Gagnon and Madi Sarsenbayev   *Who are the Better Forecasters of Inflation, Bond Traders or Economists?* by Joseph Gagnon and Madi Sarsenbayev   *The Slope of the Phillips Curve: Evidence form U.S. States* by Jonathon Hazell, Juan Herreno, Emi Nakamura, and Jon Steinsson   *The Macroeconomics of Low Inflation* by George Akerlof, William Dickens, and George Perry   *Measuring Monetary Policy: the NGDP Gap* by David Beckworth
12/12/202253 minutes, 54 seconds
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BONUS: Noah Smith on the State of Macroeconomics

Noah Smith is a former columnist for Bloomberg and is now a popular writer at his own Noahpinion Substack. In this bonus segment from the previous conversation, Noah rejoins the podcast to talk about the nuts and bolts of macroeconomic modeling. Specifically, David and Noah discuss why macroeconomics is still in its infancy, how we can improve macro modeling moving forward, how to spot “nutty” macroeconomic theories, and more.   Transcript for the episode can be found here.   Noah’s Substack: Noahpinion Noah’s Bloomberg archive Noah’s Twitter: @Noahpinion    David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here!   Related Links:   *Macroeconomics is Still in Its Infancy* by Noah Smith   *Nutty Macroeconomic Theories Will Ruin Your Country’s Economy* by Noah Smith
12/7/202230 minutes, 10 seconds
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Noah Smith on the Future of the Chinese Economy and the Climate of Social Change in the US

Noah Smith is a former columnist for Bloomberg and is now a popular writer at his own Noahpinion Substack. Noah is also a returning guest to the podcast, and rejoins Macro Musings for a wide ranging discussion on some of the recent issues he’s been covering on his Substack, including China, social change in the US, recent macro developments, and much more. Noah and David also discuss the façade of Xi Jinping’s leadership, the elite overproduction hypothesis, how Fukuyama’s *End of History* thesis can be applied today, and more.   Transcript for the episode can be found here.   Noah’s Substack: Noahpinion Noah’s Bloomberg archive Noah’s Twitter: @Noahpinion   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox! Check out our new Macro Musings merch here, and use the promo code NGDP for 10% off!   Related Links:   *The Elite Overproduction Hypothesis* by Noah Smith   *Danger Zone: The Coming Conflict with China* by Hal Brands and Michael Beckley   *Book Review: “Danger Zone”* by Noah Smith   *Is China Heading Toward Another Tiananmen Square Moment?* by Lili Pike and Tom Nagorski
12/5/202248 minutes, 16 seconds
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Hugh Rockoff on Optimal Currency Areas, “Yellowbacks,” and Free Banking

Hugh Rockoff is a professor of economics at Rutgers University and has done extensive work in U.S. monetary history. He joins the show to discuss the criteria for an ideal monetary union and argues that the U.S. didn’t really become an optimal currency area until the 1930s. David and Hugh then discuss whether a present-day example, the Eurozone, fits these criteria. They also talk about interesting chapters in U.S. monetary history, including the Civil War, the Free Banking Era, and the bimetallism debate of the late 1800s.   Transcript for the episode can be found here.   Check out our new Macro Musings merch here, and use the promo code NGDP for 10% off!   Hugh’s Rutgers profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:    *History of the American Economy* by Hugh Rockoff and Gary Walton   *How Long Did It Take the United States to Become an Optimal Currency Area?* by Hugh Rockoff   *"The Wizard of Oz" as a Monetary Allegory* by Hugh Rockoff   *The Free Banking Era: A Re-Examination* by Hugh Rockoff
11/28/202243 minutes, 29 seconds
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Patrick Horan and David Beckworth on *The Fate of FAIT* and the Future of the Fed’s Monetary Framework

In this special episode of Macro Musings, David Beckworth and Patrick Horan join guest host Carola Binder to discuss their newest paper, *The Fate of FAIT: Salvaging the Fed’s Framework.* Patrick Horan is a research fellow in the Mercatus Center’s Monetary Policy Program and Carola Binder is an associate professor of economics at Haverford College as well as a visiting scholar at the Mercatus Center. In addition to their paper, Pat and David also talk about the basics of flexible average inflation targeting, how it compares to temporary price level targeting, the differences between the Fed’s old and new frameworks, and a lot more.   Transcript for the episode can be found here.   Check out our new Macro Musings merch here, and use the promo code NGDP for 10% off!   Patrick’s Twitter: @Pat_Horan92 Patrick’s Mercatus profile   Carola’s Twitter: @cconces Carola’s Haverford site Carola’s Mercatus profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *The Fate of FAIT: Salvaging the Fed’s Framework* by David Beckworth and Patrick Horan   *2020 Statement on Longer-Run Goals and Monetary Policy Strategy* by the Federal Reserve Board of Governors   *Fed Framework Holds Central Bank Hostage* by Mohamed El-Erian   *Nominal GDP Targeting and the Taylor Rule on an Even Playing Field* by David Beckworth and Josh Hendrickson
11/21/202251 minutes, 59 seconds
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Ethan Ilzetzki on the International Implications of Fed Policy, Business Cycle Theory, and the UK Crisis

Ethan Ilzetzki is an associate professor of economics at the London School of Economics and a research fellow with the Center for Economic Policy Research. Ethan is also a returning guest to the show, and he rejoins David on Macro Musings to talk about the international implications of Fed Policy and the strong dollars as well as Ethan’s thoughts on business cycle theory in light of the recent inflation surge. David and Ethan also discuss Ethan’s takeaways from the UK crisis, how to evaluate and contextualize monetary policy shocks, the contemporary applications of the fiscal theory of the price level, and more.   Transcript for the episode can be found here.   Check out our new Macro Musings merch here, and use the promo code NGDP for 10% off!   Ethan’s Twitter: @ilzetzki Ethan’s website Ethan’s LSE profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *UK Financial Crisis of 2022: Retrospective Diagnosis and Policy Recommendations* by Ethan Ilzetzki   *Exchange Arrangements Entering the Twenty-First Century: Which Anchor Will Hold?* by Ethan Ilzetzki, Carmen Reinhart, and Kenneth Rogoff   *Inflation as a Fiscal Limit* by Francesco Bianchi and Leonardo Melosi   *The Global Financial Cycle* by Helene Rey and Silvia Miranda-Agrippino
11/14/202257 minutes, 33 seconds
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Megan Greene on the UK’s Recent Market Turmoil and What it Means for the Future of the Global Economy

Megan Greene is a senior fellow at the Watson Institute for International and Public Affairs at Brown University and is the global chief economist at Kroll. Megan is also a contributing editor and columnist for the Financial Times and is a returning guest to the podcast. She rejoins David on Macro Musings to talk about a recent article she has written titled, *UK Market Turmoil is a Harbinger of Global Events to Come.* David and Megan also discuss the basics of what caused the UK’s recent crisis, how persistent inflation continues to impact the global economy, the current outlook for international energy production, and a lot more.   Transcript for the episode can be found here.   Megan’s website Megan’s Kroll profile Megan’s Twitter: @economistmeg   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *UK Market Turmoil is a Harbinger of Global Events to Come* by Megan Greene   *The World is Starting to Hate the Fed* by Edward Luce
11/7/202246 minutes, 36 seconds
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Yesha Yadav on Treasury Market Turmoil and Potential Solutions for Reform

Yesha Yadav is a law professor and associate dean of Vanderbilt Law School. Yesha works on banking and financial regulation, securities regulation, the law of money and payment system, and is a returning guest to the podcast. She rejoins Macro Musings to talk about recent developments in the Treasury market and the prospects for reform. David and Yesha also discuss the future of CBDC in the US, the recent economic crisis in the UK, and a lot more.   Transcript for the episode can be found here.   Yesha’s Vanderbilt Law profile: https://law.vanderbilt.edu/bio/yesha-yadav Yesha’s Google Scholar archive: https://scholar.google.com/citations?user=Dn5cmSQAAAAJ&hl=en   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *The Failed Promise of Treasuries in Financial Regulation* by Yesha Yadav and Pradeep Yadav   *The Broken Bond Market* by Yesha Yadav and Jonathan Brogaard   *Markets Didn’t Oust Truss. The Bank of England Did.* by Narayana Kocherlakota   *Treasuries Liquidity Problem Exposes Fed to ‘Biggest Nightmare’* by Liz McCormick   *Yellen Flags Potential for Buybacks of Treasury Securities* by Christopher Condon   *The Squeeze That Has the US Treasury Thinking About Buying Back Bonds* by Alexandra Harris   *Hedge Funds Facing Tighter SEC Clearing Rules for Treasuries* by Lydia Beyoud and Alexandra Harris   *Geithner-Led Group Faults Fed for Slow Work on Treasuries Market* by Liz McCormick   *All-to-All Trading in the U.S. Treasury Market* by the New York Fed staff   *Toby Nangle on What We Just Learned From Gilt Market Madness* by Tracy Alloway and Joe Weisenthal
10/31/202254 minutes, 4 seconds
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Peter Ganong on the Dynamism and Resiliency of the US Economy

Peter Ganong is an associate professor at the Harris School of Public Policy at the University of Chicago. He joins David on Macro Musings to talk about his work on the dynamism and resiliency of the US economy. Peter and David also discuss the income convergence story in the US, how to address increased housing costs, the economic effects of pandemic response measures, and a lot more.   Transcript for the episode can be found here.   Peter’s Twitter: @p_ganong Peter’s UChicago profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *Why Has Regional Income Convergence in the U.S. Declined?* by Peter Ganong and Daniel Shoag   *Why Do Borrowers Default on Mortgages? A New Method for Causal Attribution* by Peter Ganong and Pascal Noel   *Liquidity Versus Wealth in Household Debt Obligations: Evidence from Housing Policy in the Great Recession* by Peter Ganong and Pascal Noel   *Spending and Job Search Impacts of Expanded Unemployment Benefits: Evidence from Administrative Micro Data* by Peter Ganong, Fiona Greig, Pascal Noel, Daniel Sullivan, and Joseph Vavra   *Housing Demand and Remote Work* by John Mondragon and Johannes Wieland   *Household Income & Spending* Research by the JPMorgan Chase Institute
10/24/202252 minutes, 37 seconds
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Bill Nelson on How Bank Examiner Preferences are Obstructing Monetary Policy

Bill Nelson is the chief economist and executive vice president at the Bank Policy Institute. He previously worked as a deputy director of the Division of Monetary Affairs at the Federal Reserve Board, where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. Bill has also worked closely with the BIS working groups on the design of liquidity regulations and is a returning guest of the podcast. He rejoins David on Macro Musings to talk about his new note that is titled, *Bank Examiner Preferences are Obstructing Monetary Policy*. David and Bill also discuss how the Fed’s forward guidance is affecting recent market turmoil, how to change the mindset of bank examiners and the public, why the Fed should look into establishing a committed liquidity facility, and more.   Transcript for the episode can be found here.   Bill’s BPI profile BPI’s Twitter: @bankpolicy   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox   Related Links:   *Bank Examiner Preferences are Obstructing Monetary Policy* by Bill Nelson   *Quantifying the Costs and Benefits of Quantitative Easing* by Andrew Levin, Brian Lu, and Bill Nelson   FRED Graph: *Liabilities and Capital: Liabilities: Earnings Remittances Due to the U.S. Treasury: Wednesday Level*   *The Global Financial Cycle* by Silvia Miranda-Agrippino and Helene Rey
10/17/202249 minutes, 34 seconds
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BONUS: George Selgin on *False Dawn: The New Deal and the Promise of Recovery*

George Selgin is a senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute and is also a long-time returning guest of Macro Musings. In this bonus segment from the previous conversation, George rejoins the podcast to talk about his new book project on the Great Depression titled, False Dawn: The New Deal and the Promise of Recovery. Specifically, David and George discuss the broad contours of the Great Depression, including its causes as well as the pros and cons of the New Deal solutions that followed.   Transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   Macro Musings: *Jason Taylor on the Great Depression, World War II, and “The Big Push”*   Macro Musings: *Doug Irwin on the History of US Trade Policy*   Macro Musings: *Sebastian Edwards on FDR, Gold, and the Great Depression*   *American Default: The Untold Story of FDR, the Supreme Court, and the Battle over Gold* by Sebastian Edwards
10/12/202234 minutes, 12 seconds
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Macro Lit Review 2: Highlights from Late 2022 with George Selgin

George Selgin is a senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute. George is also a frequent guest of the podcast, and he rejoins David on Macro Musings once again to discuss their top three articles from the past few weeks related to macroeconomics and monetary policy. Specifically, David and George talk about Jerome Powell’s recent criticism of nominal GDP targeting, Lael Brainard’s recent comments regarding FedNow and real-time payments, the debate surrounding the Fed’s campaign against inflation, and a lot more.   Transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato profile    David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *A Conversation Between Federal Reserve Chair Jerome Powell and Peter Goettler* via the Cato Institute   *The Return of Inflation Makes Deficits More Dangerous* by Greg Ip   *Jerome Powell’s Dilemma: What if the Drivers of Inflation Are Here to Stay?* by Nick Timiraos   *Primer: What is a Real-time Payments System, and Who Should Operate it?* by Thomas Wade   *Facts, Fears, and Functionality of NGDP Level Targeting* by David Beckworth   *Anchors Aweigh: The Transition from Commodity Money to Fiat Money in Western Economies* by Angela Redish
10/10/202256 minutes, 35 seconds
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Bill English on the Effectiveness of QE and the Consequences of Fed Losses

Bill English is a professor at Yale University, a former senior Fed staffer, and a veteran of the Bank for International Settlements. Bill joins Macro Musings to talk about his time at the Federal Reserve, recent Fed developments, and a paper he co-authored titled, “What If the Federal Reserve Books Losses Because of Its Quantitative Easing?” David and Bill also discuss the Fed’s recent low-inflation mandate, the QE effectiveness debate, and why we should and shouldn’t be concerned about Fed balance sheet losses.   Transcript for the episode can be found here.   Bill’s Yale profile Bill’s Federal Reserve profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *What if the Federal Reserve Books Losses Because of its Quantitative Easing?* by William English and Donald Kohn   Macro Musings: *Donald Kohn on Fed Policy from the 1970s to Today*   *Think of Powell as Volcker’s Wannabe Second Coming* by John Authers
10/3/202252 minutes, 35 seconds
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Andrew Levin on the Costs and Benefits of QE4 and the Future of the Fed’s Balance Sheet

Andrew Levin is a professor of economics at Dartmouth College and a former long-time Fed official. Andy is also a previous guest of Macro Musings and rejoins the podcast to talk about the costs and benefits of the Fed’s QE4 program. David and Andy also discuss the Fed’s recent record on inflation, QE4’s impact on market functioning, the present and future of the Fed’s balance sheet, and more.   Transcript for the episode can be found here.   Andrew’s Dartmouth profile Andrew’s NBER archive   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links: *Quantifying the Costs and Benefits of Quantitative Easing* by Andrew Levin, Brian Lu, and William Nelson   *Incorporating Scenario Analysis into the Federal Reserve’s Policy Strategy and Communications* by Michael Bordo, Andrew Levin, and Mickey Levy   *What if the Federal Reserve Books Losses Because of its Quantitative Easing?* by William English and Donald Kohn
9/26/202254 minutes, 54 seconds
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Steven Kelly on Crises, Stability, and the Fed’s Role in Financial Markets

Steven Kelly is a senior research associate at the Yale Program on Financial Stability. Steven joins David on Macro Musings to discuss his work on financial stability and the role the Federal Reserve plays in it. Specifically, David and Steven discuss the Fed’s evolving role in niche financial markets such as commodities and derivatives markets, what Section 13.3 of the Federal Reserve Act says about the Fed’s basis to engage in financial markets, proposals to improve the Fed’s Standing Repo Facility (SRF), the future of stablecoins and central bank digital currencies (CBDCs) in financial markets, and much more. Transcript for the episode can be found here.   Steven’s Twitter: @StevenKelly49 Steven’s Substack: Without Warning   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   The Reserve (podcast) hosted by Kaleb Nygaard   New Bagehot Project, Yale Program on Financial Stability (YPFS)   “The Fed As Derivatives Dealer of Last Resort?” by Steven Kelly   “Could the Fed Rescue Commodities Markets?” by Steven Kelly   “Improving the Standing Repo Facility” by Steven Kelly   “Unappropriated Dollars: The Fed's Ad Hoc Lending Facilities and the Rules that Govern Them” by Lev Menand   The Fed Unbound: Central Banking in a Time of Crisis by Lev Menand   “Larry Ball on the Lehman Brothers Collapse and Its Role in the Great Recession”, Macro Musings podcast episode (2018)
9/19/202249 minutes, 22 seconds
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Scott Sumner on Alternative Approaches to Monetary Policy

Scott Sumner is the Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center. Scott joins David on Macro Musings to look back on his contributions to monetary policy research with the Mercatus Center and elsewhere, as well as discuss his upcoming book, Alternative Approaches to Monetary Policy. In particular, Scott and David discuss how the Fed’s monetary policy mistakes in 2008 impacted the direction of Scott’s research, the theory and prospects for a nominal GDP futures contract, the future of monetary policy in the Eurozone and whether the ECB has gotten more hawkish, how changing macroeconomic conditions across history help explain the changing popularity of particular policy models, and much more.   Transcript for the episode can be found here.   Scott’s Twitter: @ScottSumnerTMI Scott’s blog Scott’s Mercatus profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   “Nominal GDP futures targeting” by Scott Sumner   “A Market-Driven Nominal GDP Targeting Regime” by Scott Sumner   “Using Futures Instrument Prices To Target Nominal Income” by Scott Sumner   “The Impact of Futures Price Targeting on the Precision and Credibility of Monetary Policy” by Scott Sumner
9/12/202252 minutes, 32 seconds
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Hanno Lustig on Fiscal Dominance, Inflation, and the Effects of Long-term Interest Rate Decline

Hanno Lustig is a professor of finance at Stanford University and a senior fellow at the Stanford Institute for Economic Policy Research. Hanno is also a former guest on Macro Musings and rejoins the podcast to talk about fiscal dominance, global inflation, interest rates, wealth and equality, and Eurozone challenges. David and Hanno also discuss how to reconcile Treasury yield movements with impending fiscal dominance, why we’re seeing a long-term decline in real interest rates, the early trends in post-pandemic inflation, and more.   Transcript for the episode can be found here.   Hanno’s Twitter: @HannoLustig Hanno’s Stanford profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *What Drives Variation in the U.S. Debt/Output Ratio? The Dogs that Didn’t Bark* by Hanno Lustig, Zhengyang Jiang, Stijn Van Nieuwerburgh, and Mindy Xiaolan   *US Government Debt Valuation Puzzle* by Hanno Lustig, Zhengyang Jiang, Stijn Van Nieuwerburgh, and Mindy Xiaolan   *Monetary Science, Fiscal Alchemy* by Eric Leeper
9/5/202255 minutes, 21 seconds
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Joshua Younger on the Treasury Market: Structure, Stressors, and Potential Reforms

Josh Younger is currently a managing director and global head of ALM research and strategy at JP Morgan, and previously spent over a decade as a senior market strategist focused on interest rate and money markets. Josh joins David on Macro Musings to discuss the current state of the Treasury market and various reforms that have recently been proposed for it. Specifically, Josh and David discuss the history and evolving structure of the Treasury market, the emergence of high frequency trading firms over the past decade, the factors behind the 2020 dash for cash, current stresses on the Treasury market, as well as potential reforms for the market going forward.   Transcript for the episode can be found here.   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!
8/29/202254 minutes, 16 seconds
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Carola Binder on the Importance of Inflation Expectations and How Policymakers Should Respond

Carola Binder is an associate professor of economics at Haverford College and is currently a visiting scholar in the Monetary Policy Program at the Mercatus Center. She is also an associate editor at the Review of Economics and Statistics and the Journal of Money Credit and Banking. Carola rejoins Macro Musings to talk about inflation expectations and uncertainty. Specifically, David and Carola discuss why we should care about inflation expectations, which survey measures are most important, how policymakers should respond, and more.   Transcript for the episode can be found here.   Carola’s Twitter: @cconces Carola’s Haverford site Carola’s Mercatus profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *Consumer Inflation Uncertainty Is Rising* by Carola Binder   *Stuck in the Seventies: Gas Prices and Consumer Sentiment* by Carola Binder and Christos Makridis   *Inflation Expectations and Consumption: Evidence from 1951* by Carola Binder and Gillian Brunet   *How Do Americans View Higher Inflation?* by Frank Newport   *Inflation Expectations and Consumer Spending: The Role of Household Balance Sheets* by Lenard Lieb and Johannes Schuffels   *Inflation Expectations and Readiness to Spend: Cross-Sectional Evidence* by Rudiger Bachmann, Tim Berg, and Eric Sims   *A New Measure of Monetary Shocks: Derivation and Implications* by Christina Romer and David Romer
8/22/202253 minutes, 17 seconds
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Jeffrey Lacker on the Past, Present, and Future of Federal Reserve Policy

Jeffrey Lacker is a former president of the Federal Reserve Bank of Richmond, where he served as its head from 2004 to 2017, and more recently served as a distinguished professor of economics at the Virginia Commonwealth University School of Business through 2022. Currently, Jeff serves on the Shadow Open Market Committee. He joins David on Macro Musings to discuss the traditions of the Richmond Fed, the history of the Federal Reserve’s implicit inflation target prior to 2012, the two percent inflation target the Fed formalized in 2012, the more recent transition to an average inflation target, what the Fed should consider during its next comprehensive framework review, and much more.   Transcript for the episode can be found here.   Jeffrey’s website Jeffrey’s Richmond Fed profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *A Look Back at the Consensus Statement* By Jeffrey Lacker   *Money Market Fund Reform: Dealing with the Fundamental Problem* by Jeffrey Lacker
8/15/202252 minutes, 59 seconds
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BONUS: Gerard DiPippo on China’s Attempts to Infiltrate the Fed

Gerard DiPippo is a senior fellow with the economics program at the Center for Strategic and International Studies. Previously, he spent 11 years in the US intelligence community as a deputy national intelligence officer for economic issues at the National Intelligence Council and as a senior economic analyst at the Central Intelligence Agency. In this bonus segment from the previous conversation, David and Gerard discuss the recent Senate report which details the Chinese Government’s decade-long campaign to infiltrate the US Federal Reserve System. Gerard brings his expertise in both national security and monetary policy to this conversation with David to shed some light on this news story.   Transcript for the episode can be found here.   Gerard’s Twitter: @gdp1985 Gerard’s CSIS profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *China Targeted Fed to Build Informant Network and Access Data, Probe Finds* by Kate O’Keeffe and Nick Timiraos   *China targets Fed to Gain Influence, Senator Charges, Drawing Powell Rebuke* by Kate Davidson   *China’s Threat to the Fed: Chinese Influence and Information Theft at U.S. Federal Reserve Banks* Minority Staff Report, Committee on Homeland Security and Governmental Affairs
8/10/202217 minutes, 49 seconds
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Gerard DiPippo on the Russia Sanctions, Demographic Decline, and the Future of the Global Monetary System

Gerard DiPippo is a senior fellow with the economics program at the Center for Strategic and International Studies. Previously, he spent 11 years in the US intelligence community as a deputy national intelligence officer for economic issues at the National Intelligence Council and as a senior economic analyst at the Central Intelligence Agency. Gerard joins Macro Musings to talk about the Russia Sanctions, the global monetary system, demographics, and other economic issues viewed through the lens of national security. He and David also discuss the lessons from the Russia sanctions, dollar dominance as a disciplinary tool, the implications of global population decline, why economic security means national security, and more.   Transcript for the episode can be found here.   Gerard’s Twitter: @gdp1985 Gerard’s CSIS profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *Strangling the Bear? The Sanctions on Russia After Four Months* by Gerard DiPippo   *Deterrence First: Applying Lessons From Sanctions on Russia to China* by Gerard DiPippo   *Global Population Growth Hits Lowest Rate Since 1950* by Valentina Romei and Alan Smith
8/8/202259 minutes, 18 seconds
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Tom Graff on the July FOMC Meeting and the Recession Debate

Tom Graff is the head of investments for Facet Wealth and has several decades leading fixed income departments. Tom joins David on Macro Musings to provide his thoughts on the recent FOMC meeting, the Q2 2022 GDP numbers and their implications for the economy, and the future path of Fed policy. Specifically, David and Tom discuss the recent GDP numbers from Q2 2022, the merits of public concerns over a recession, takeaways from the July FOMC meeting, interest rate theory and implicit forecasts of inflation, the fiscal theory of the price level, the continued importance of the Fed’s framework, and much more.   Transcript for the episode can be found here.   Tom’s Twitter: @tdgraff Tom’s Facet Wealth profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   Real GDP Numbers updated for Q2 2022   Federal Open Market Committee: July 26-27, 2022 FOMC Meeting
8/1/202249 minutes, 52 seconds
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Ellen Meade on Transparency, Independence, and Lessons for the Fed’s Next Framework Review

Ellen Meade is a research professor of economics at Duke University and a veteran of the Federal Reserve System. Most recently, Ellen served as a special advisor to the board and Vice Chair, Richard Clarida. Ellen joins David on Macro Musings to discuss her research on monetary policy and her work at the Federal Reserve. Specifically, Ellen and David discuss the prospect of central bank independence at the Fed and the specter of fiscal dominance, the recent history of secrecy and transparency at the Fed and how that impacts the incentives to dissent, the effect of the Fed’s forward guidance on recent policy events, what lessons from the past two years the Fed should incorporate into its next framework review, and much more.   Transcript for the episode can be found here.   Ellen’s Vox EU profile Ellen’s Research Gate archive   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *The Evolution of Central Bank Governance Around the World* by Ellen E. Meade and Christopher Crowe   *Central Bank Independence and Transparency: Evolution and Effectiveness* by Ellen E. Meade  and Christopher Crowe   *Publicity of Debate and the Incentive to Dissent: Evidence from the US Federal Reserve* by Ellen E. Meade and David Stasavage
7/25/202257 minutes, 47 seconds
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Randal Quarles on Inflation, Balance Sheet Reduction, Financial Stability, and the Future of the Fed

Randal Quarles is the executive chairman of the Cynosure Group and the former Vice Chair of Supervision for the Federal Reserve Board of Governors. Randy also served as an official in the US Department of Treasury, and he joins Macro Musings to talk about his time at the Federal Reserve and his thoughts on current issues facing the institution. David and Randy also discuss how the Fed fell behind the curve on inflation, how he sees the balance sheet reduction process playing out, the central bank’s shifting focus toward climate change, and more.   Transcript for the episode can be found here.   Randal’s Cynosure profile Randal’s Federal Reserve profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *Between the Hither and the Farther Shore: Thoughts on Unfinished Business* by Randal Quarles
7/18/202247 minutes, 16 seconds
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Kathy Jones on the Current Economic Slowdown, Quantitative Tightening, and the Fed’s New Framework

Kathy Jones is managing director and chief fixed income strategist for the Schwab Center for Financial Research, and she has spent many years on Wall Street, covering bond markets and foreign exchange. Kathy joins Macro Musings to talk about the present outlook for the economy, the state of markets, and Fed policy. Specifically, David and Kathy discuss the story behind the recent economic slowdown, why equity markets are behind the recessionary curve, Kathy’s sense on QT moving forward, and more.   Transcript for the episode can be found here.   Kathy’s Twitter: @KathyJones Kathy’s Charles Schwab profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!
7/11/202247 minutes, 29 seconds
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Michael Dooley on the International Monetary System and Future of Global Dollar Dominance

Michael Dooley is a chief economist for Figure Technologies and a 20-year veteran of the Federal Reserve System and the IMF. Michael is also a professor emeritus in the department of economics at the University of California, Santa Cruz, and he joins Macro Musings to talk about the international monetary system and the future of the dollar. Specifically, David and Michael also discuss the original and revised Bretton Woods systems, the Fed’s role as a monetary superpower, and what this means for the US as a provider of safe and unsafe assets.   Transcript for the episode can be found here.   Michael’s UC Santa Cruz profile Michael’s NBER archive   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *US Sanctions Reinforce the Dollar’s Dominance* by Michael Dooley, David Folkerts-Landau, and Peter Garber   *Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold?* by Ethan Ilzetzki, Carmen Reinhart, and Kenneth Rogoff   *Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence* by Helene Rey   *The Global Financial Cycle* by Helene Rey and Silvia Miranda-Agrippino
7/4/202248 minutes, 17 seconds
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Brian Knight on the Politicization of Finance

Brian Knight is the Director of Innovation and Governance at the Mercatus Center at George Mason University. Brian’s research focuses on numerous aspects of financial regulation, including the creation of pro-innovation regulatory environments, the role of federalism in fintech regulation, the use of digital assets for financial transactions, the role of regulation for credit markets and consumer protection, and the provision of capital to businesses. Brian joins David on Macro Musings to discuss the politicization of finance and its implications for policy. Specifically, Brian and David discuss the concept of reputational risk and its relevance for financial regulation, the extent and limits of ESG concerns in financial regulation, whether financial regulators are too political or not political enough, the present state as well as the future of ‘woke capitalism’, and much more.   Transcript for the episode can be found here.   Brian’s Twitter: @BrianRKnight Brian’s Mercatus profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *How Financial Regulatory Tools are Used Against Law-abiding Americans – and How to Fix It* by Brian Knight   *Climate Change is a Risk for Banks but it's Not the Only One* by Brian Knight   *Are Financial Regulators Too Political or Not Political Enough?* by Brian Knight
6/27/202251 minutes, 20 seconds
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Lev Menand on *The Fed Unbound: Central Banking in a Time of Crisis*

Lev Menand is an associate professor of law at Columbia University Law School and writes widely on legal issues surrounding the Federal Reserve. Lev rejoins Macro Musings to talk about his new book titled, *The Fed Unbound: Central Banking in a Time of Crisis.* Specifically, David and Lev discuss why the Fed can be considered unbound, the history of the Fed’s engagement with the shadow banking system, and Lev’s solutions for reform.   Transcript for the episode can be found here.   Lev’s Twitter: @LevMenand Lev’s Columbia Law profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *The Fed Unbound: Central Banking in a Time of Crisis* by Lev Menand   *Unappropriated Dollars: The Fed’s Ad Hoc Lending Facilities and the Rules That Govern Them* by Lev Menand
6/20/202252 minutes, 33 seconds
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Macro Lit Review 1: Highlights from Mid-2022 with George Selgin

George Selgin is a senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute. He is also the most frequent guest on Macro Musings, now appearing for his 12th time. In this episode, George and David identify and discuss their top three articles from the past few weeks related to macroeconomics and monetary policy. Specifically, George and Selgin discuss Lael Brainard’s recent speech defending the Fed’s prospects of issuing central bank digital currency, Janet Yellen’s concession about the path that inflation has taken, the governmental accounting of Federal Reserve losses and whether they amount to a net taxpayer burden, why the Dollar remains firm as the dominant currency in global markets, how an orthodox corridor system defaults into a floor system during times of crisis, and much more.   Transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato profile   David’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings Click here for the latest Macro Musings episodes sent straight to your inbox!   Related Links:   *No, Fed, Unrealized Losses are Real Losses for Taxpayers* by Bill Nelson   *Preparing for the Financial System of the Future* speech by Lael Brainard at the 2022 U.S. Monetary Policy Forum   *What if the Federal Reserve Books Losses Because of its Quantitative Easing?* by Willam B. English and Donald Kohn    *From Burns to Powell*, a Macro Musings podcast episode with Guest Donald Kohn and host David Beckworth   *Treasury Secretary Concedes She Was Wrong on 'Path That Inflation Would Take'* By Kevin Liptak and Paul LeBlanc   *How Monetary Policy Got Behind The Curve And How To Get Back: A Policy Conference* Hoover Institution, Stanford University   *Jack Dorsey is Wrong. The Dollar is Still a Global Reserve Currency* by Mark Copelovitch   *A Model of Credit, Money, Interest, and Prices* by Saki Bigio and Yuliy Sannikov
6/13/202257 minutes, 21 seconds
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Christine McDaniel on the Russia Sanctions and Their Impact on Globalization and the Russian Economy

Christine McDaniel is a senior research fellow at the Mercatus Center where she focuses on trade and intellectual property rights issues. Christine previously held several positions in the US government, including deputy assistant secretary at the Treasury Department and senior trade economist in the White House Council of Economic Advisors. She has also worked in the economic offices of the US Department of Commerce, US Trade Representative, and the US International Trade Commission. Christine rejoins Macro Musings to talk about the economic sanctions applied to Russia, and their implication for the Russian economy and globalization more generally. Specifically, David and Christine also discuss the structure and effectiveness of the Russia sanctions, the war’s heavy impact on food shortages, the role of dollar dominance in geopolitics, and more.   Transcript for the episode can be found here.   Christine’s Twitter: @christinemcdan Christine’s Mercatus profile: https://www.mercatus.org/scholars/christine-mcdaniel   Related Links:   *We’ve Never Seen a Country Go Backwards as Quickly as Russia* by Christine McDaniel https://thehill.com/opinion/international/3487291-weve-never-seen-a-country-go-backwards-as-quickly-as-russia/   *Estimating the Economic Effects of Sanctions on Russia: An Allied Trade Embargo* by Kornel Mahlstein, Christine McDaniel, Simon Schropp, and Marinos Tsigas https://cadmus.eui.eu/bitstream/handle/1814/74493/RSC_WP_2022_36.pdf?sequence=1&isAllowed=y   *Potential Economic Effects of Sanctions on Russia: An Allied Trade Embargo* by Kornel Mahlstein, Christine McDaniel, Simon Schropp, and Marinos Tsigas https://voxeu.org/article/potential-economic-effects-allied-trade-embargo-russia   *US Sanctions Reinforce the Dollar’s Dominance* by Michael P. Dooley, David Folkerts-Landau, and Peter M. Garber https://www.nber.org/papers/w29943#:~:text=Recent%20sanctions%20on%20the%20use,shock%20absorber%E2%80%9D%20for%20international%20payments.   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/6/202250 minutes, 48 seconds
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Manmohan Singh on the Role and Structure of Stablecoins and the Impact of Collateral in the Financial System

Manmohan Singh is a senior economist at the International Monetary Fund and works on rehypothecation, shadow banking, the plumbing of the monetary system, and more. Manmohan joins Macro Musings to talk about stablecoins, central bank balance sheets, central bank digital currencies, and their broader implication for central banks. David and Manmohan specifically discuss the role and structure of stablecoins, the impact of collateral within the financial system, how the Fed have looked to address plumbing issues within this system, and more.   Take the Macro Musings listener survey here.   Transcript for the episode can be found here.   Manmohan’s VoxEU profile: https://voxeu.org/users/manmohansingh0 Manmohan’s Risk.net archive: https://www.risk.net/author/manmohan-singh   Related Links:   *Interoperability of Stablecoins* by Manmohan Singh, Caitlin Long, and Charles Kahn https://www.centralbanking.com/fintech/7892256/interoperability-of-stablecoins   *How to Stop Stablecoins from Hoarding Precious Collateral* by Manmohan Singh and Caitlin Long https://www.risk.net/comment/7948696/how-to-stop-stablecoins-from-hoarding-precious-collateral   *Money is Privacy* by Charles Kahn, James McAndrews, and William Roberds https://www.jstor.org/stable/3663561   *Investors Withdraw Over $7 Billion from Tether, Raising Fresh Fears About Stablecoin’s Backing* by Ryan Browne https://www.cnbc.com/2022/05/17/tether-usdt-redemptions-fuel-fears-about-stablecoins-backing.html   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/30/202258 minutes, 31 seconds
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Bill Nelson on How the Fed Fell Behind the Curve

Bill Nelson is the Chief Economist and an Executive Vice President at the Bank Policy Institute. Bill previously was a deputy director at the Division of Monetary Affairs at the Federal Reserve Board where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. He also worked closely with the BIS on the design of liquidity regulation. Bill joins David on Macro Musings to discuss the Fed's balance sheet, its reduction plans and how the Fed fell behind the curve. Specifically, David and Bill get into whether the Fed regretted its premature tightening period from 2015 to 2018, how the Fed’s focus on the baseline outlook left it not resilient to alternative developments, how concerns over another taper tantrum impacted the Fed’s decision-making, the Fed’s handling of its FAIT framework, and much more. Take the Macro Musings listener survey here.   Transcript for the episode can be found here.   Bill’s Bank Policy Institute profile: https://bpi.com/people/bill-nelson/ Bill’s American Banker archive: https://www.americanbanker.com/author/william-nelson-ab3618   Related Links: “Plane Crashes and Falling Behind the Curve” by Bill Nelson https://www.linkedin.com/pulse/plane-crashes-falling-behind-curve-bill-nelson/?trk=articles_directory “Guest post: A former Fed insider explains the internal debate over QE3” by Bill Nelson https://www.ft.com/content/254befb7-10f8-3f2c-a9a8-bc6226a6f1db "The Potential Ineffectiveness of Policy at the Zero Bound" (Memo to the Federal Reserve Board of Governors) by Bill Nelson and Brian Sack https://www.dropbox.com/s/fv21og7vpx1izml/BillNelsonMemo.pdf?dl=0  “Interpreting the Significance of the Lagged Interest Rate in Estimated Monetary Policy Rules” by William B. English, William R. Nelson, and Brian P. Sack https://papers.ssrn.com/sol3/papers.cfm?abstract_id=314425   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
5/23/202259 minutes, 33 seconds
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Josh Hendrickson on Economic Growth, National Defense, and US Monetary Policy

Josh Hendrickson is Associate Professor of Economics at the University of Mississippi and Chair of the Economics Department. Josh joins David on Macro Musings to discuss US monetary policy and US defense policy. Specifically, Josh and David discuss the coordination of fiscal and monetary policy and what Milton Friedman would think of it today, the Fed’s responsibility for modern inflation trends, state capacity and how it impacts economic growth, the role of national defense in the context of state capacity and economic growth, and much more.   Take the Macro Musings listener survey here.   Transcript for the episode can be found here.   Josh’s Twitter: @RebelEconProf Josh’s Ole Miss profile: https://economics.olemiss.edu/joshua-hendrickson/   Related Links:   *Central Banks are Inflation Creators, Not Inflation Fighters* by Joshua R. Hendrickson https://www.mercatus.org/publications/monetary-policy/central-banks-are-inflation-creators-not-inflation-fighters   *Evolution, Uncertainty, and the Asymptotic Efficiency of Policy* by Brian C. Albrecht, Joshua R. Hendrickson, and Alexander William Salter https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3251917   *The Coronavirus and Lessons for Preparedness* by Josh Hendrickson https://www.mercatus.org/publications/covid-19-crisis-response/coronavirus-and-lessons-preparedness   *Preventing Plunder, Military Technology, Capital Accumulation and Economic Growth* by Brian C. Albrecht, Joshua R. Hendrickson, and Alexander William Salter https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3025548   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/16/202251 minutes, 33 seconds
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Peter Ireland on the Fed’s Pandemic Performance and the Path Forward for Monetary Policy

Peter Ireland is a professor of economics at Boston College, a research associate at the National Bureau of Economic Research, and a member of the Shadow Open Market Committee. Peter has also been a visiting scholar at numerous Federal Reserve Banks and is a returning guest to the podcast. He rejoins Macro Musings to talk about U.S. monetary policy during the pandemic and what the path forward looks like for the Fed and the policy landscape. David and Peter also discuss the current state of macroeconomics, including the most influential and popular business cycle theories, the present direction of policy macro, and whether or not the Fed’s current framework should shoulder blame for its pandemic policy missteps.     Take the Macro Musings listener survey here.   Transcript for the episode can be found here.   Peter’s Twitter: @PIrelandEcon Peter’s Boston College profile: https://www.bc.edu/bc-web/schools/mcas/departments/economics/people/faculty-directory/peter-ireland.html   Related Links:   *The Continuing Case for Nominal GDP Level Targeting* by Peter Ireland http://irelandp.com/papers/somc202204.pdf   *Targeting Nominal Income Under the Zero Lower Bound: The Case of the Bank of England* by Michael Belongia and Peter Ireland https://centerforfinancialstability.org/amfm/studies/ukngdp2021.pdf   *Strengthening the Second Pillar: A Greater Role for Money in the ECB’s Strategy* by Michael Belongia and Peter Ireland http://irelandp.com/papers/eurongdp.pdf   *Facts, Fears, and Functionality of NGDP Level Targeting: A Guide to a Popular Framework for Monetary Policy* by David Beckworth https://www.mercatus.org/system/files/beckworth-ngdp-targeting-mercatus-special-study-v2.pdf   *How to Ensure That Inflation Will Remain at the Federal Reserve’s 2 Percent Target* by Robert Hetzel https://www.mercatus.org/publications/monetary-policy/how-ensure-inflation-will-remain-federal-reserve%E2%80%99s-2-percent-target   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/9/202257 minutes, 29 seconds
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Jens van 't Klooster on Recent ECB Policy: A Paradigm Shift Without Legislative Change

Jens van 't Klooster is a political economist at the University of Amsterdam's Department of Political Science. Jens rejoins David on Macro Musings to discuss the changes taking place at the European Central Bank. Specifically, Jens and David talk about the ECB’s recent commitment to a gradual process of monetary tightening, the prospect and limitations of market neutrality in setting monetary policy, the rise of technocratic Keynesianism and questions surrounding the political legitimacy of the ECB’s recent policy decisions, as well as the politics surrounding the ECB’s approach to government debt.   Take our listener survey here.   Transcript for the episode can be found here.   Jens’s Twitter: @jvklooster Jens’s website: https://jensvantklooster.com/   Related Links:   *The Myth of Market Neutrality: A Comparative Study of the European Central Bank’s and the Swiss National Bank’s Corporate Security Purchases* by Jens van ’t Klooster and Clément Fontan https://www.tandfonline.com/doi/full/10.1080/13563467.2019.1657077   *Technocratic Keynesianism: A Paradigm Shift Without Legislative Change* by Jens van ’t Klooster https://www.tandfonline.com/doi/full/10.1080/13563467.2021.2013791   *The Politics of the ECB’s Market-Based Approach to Government Debt* by Jens van ’t Klooster https://academic.oup.com/ser/advance-article/doi/10.1093/ser/mwac014/6554757   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/2/20221 hour, 1 minute, 36 seconds
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Colin Grabow on Current Trends in US Trade Policy and the Adverse Impact of the Jones Act

Colin Grabow is a policy analyst at the Cato Institute’s Center for Trade Policy Studies, and he joins Macro Musings to talk about US trade policies, the Jones Act, and the consequences of this harmful maritime statute. Specifically, David and Colin also discuss the counterfactual world of TPP, the future of international trade, and how to fix the myriad of problems caused by the Jones Act.   Transcript for the episode can be found here.   Colin’s Twitter: @cpgrabow Colin’s Cato Institute profile: https://www.cato.org/people/colin-grabow   Related Links:   Cato’s Project on Jones Act Reform: https://www.cato.org/project-jones-act-reform   *The Jones Act: A Burden America Can No Longer Bear* by Colin Grabow, Inu Manak, and Daniel Ikenson https://www.cato.org/publications/policy-analysis/jones-act-burden-america-can-no-longer-bear   *Rust Buckets: How the Jones Act Undermines U.S. Shipbuilding and National Security* by Colin Grabow https://www.cato.org/policy-analysis/rust-buckets-how-jones-act-undermines-us-shipbuilding-national-security   *The Progressive Case for Jones Act Reform* by Colin Grabow https://www.cato.org/study/progressive-case-jones-act-reform#:~:text=The%20Jones%20Act%20is%20unwise,repeal%2C%20of%20this%20odious%20law   *Candy-Coated Cartel: Time to Kill the U.S. Sugar Program* by Colin Grabow https://www.cato.org/policy-analysis/candy-coated-cartel-time-kill-us-sugar-program   *5 Years Later and the United States is Still Paying for Its TPP Blunder* by Colin Grabow https://www.cato.org/blog/5-years-later-united-states-still-paying-tpp-blunder   *The Cato Trade Team’s 2022 Policy Wish List* by Scott Lincicome, Inu Manak, Gabriella Beaumont-Smith & Colin Grabow https://www.cato.org/blog/cato-trade-teams-2022-policy-wish-list   *For Inflation Relief, the United States Should Look to Trade Liberalization* by Gary Clyde Hufbauer, Megan Hogan, & Yilin Wang https://www.piie.com/publications/policy-briefs/inflation-relief-united-states-should-look-trade-liberalization#:~:text=For%20inflation%20relief%2C%20the%20United%20States%20should%20look%20to%20trade%20liberalization,-Gary%20Clyde%20Hufbauer&text=With%20US%20inflation%20running%20at,calls%20anticompetitive%20behavior%20by%20corporations   *Biden’s Frozen Trade Policy* by Anne Krueger https://www.project-syndicate.org/commentary/trump-trade-policy-frozen-in-place-under-biden-by-anne-o-krueger-2022-02?barrier=accesspaylog   *Clashing over Commerce: A History of US Trade Policy* by Douglas Irwin https://press.uchicago.edu/ucp/books/book/chicago/C/bo24475328.html   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
4/25/202253 minutes, 53 seconds
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Nick Timiraos on Jerome Powell’s Tenure as Fed Chair

Nick Timiraos is a Chief Economics Correspondent for the Wall Street Journal and rejoins Macro Musings to discuss his new book titled, *Trillion Dollar Triage: How Jay Powell and the Fed Battled the President and a Pandemic and Prevented Economic Disaster.* Specifically, David and Nick discuss Jay Powell’s background and early career in law and finance, his unique path to being nominated as Fed Chair, how Powell’s character has aided him in his eventful tenure as Fed Chair, how he was uniquely suited to usher in the change to the Fed’s operating framework, and much more.   Check out the Conversations with Tyler episode featuring David Rubenstein.   Transcript for the episode can be found here.   Nick’s Twitter: @NickTimiraos Nick’s Wall Street Journal profile: https://www.wsj.com/news/author/nick-timiraos   Related Links:   Check out the Conversations with Tyler episode featuring David Rubenstein: https://conversationswithtyler.com/episodes/david-rubenstein/   *Trillion Dollar Triage: How Jay Powell and the Fed Battle the President and a Pandemic and Prevented Economic Disaster* by Nick Timiraos https://www.littlebrown.com/titles/nick-timiraos/trillion-dollar-triage/9780316272810/   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
4/18/202253 minutes, 51 seconds
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Joey Politano on Recent Inflationary Trends and the Future Outlook for Monetary Policy

Joey Politano is an economist and a commentator who writes and publishes on a Substack newsletter named, “Apricitas Economics,” where he covers a wide range of subjects on a number of economic topics. Joey joins Macro Musings to talk about inflation, monetary policy, and the issues surround them. Specifically, David and Joey discuss the outlook for services and durable goods inflation, the indicators of tightening financial conditions, lessons learned from monetary policy over the past decade, and more.   Transcript for the episode can be found here.   Joey’s Twitter: @JosephPolitano Joey’s Substack: https://apricitas.substack.com/   Related Links:   *Inflation Hits 7.9%, and Things are Likely to Get Worse Before They Get Better* by Joseph Politano https://apricitas.substack.com/p/inflation-hits-79-and-things-are?s=r   *Financial Conditions are Tightening as the Fed Raises Rates* by Joseph Politano https://apricitas.substack.com/p/financial-conditions-are-tightening?s=r   *Understanding the Fed’s Hawkish Pivot* by Joseph Politano https://apricitas.substack.com/p/understanding-the-feds-hawkish-pivot?s=r   *Biden’s Deep State is on Substack* by Alex Thompson, Tina Sfondeles, and Max Tani https://www.politico.com/newsletters/west-wing-playbook/2022/01/10/bidens-deep-state-is-on-substack-495668   *Powell Says ‘Inflation is Much Too High’ and the Fed Will Take ‘Necessary Steps’ to Address* by Jeff Cox https://www.cnbc.com/2022/03/21/powell-says-inflation-is-much-too-high-and-the-fed-will-take-necessary-steps-to-address.html   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
4/11/202244 minutes, 16 seconds
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Eric Leeper on the Interactions of Fiscal and Monetary Policy

Eric Leeper is a professor of economics at the University of Virginia, an advisor to the Swedish and German central banks and a former Fed economist. Eric has written widely on the links between monetary policy and fiscal policy and joins David on Macro Musings to discuss these links and their implication for the price level. Specifically, Eric and David discuss the relationship between fiscal authorities and monetary authorities as it relates to fiscal dominance and monetary dominance, how the fiscal theory of the price level (FTPL) enhances our understanding of these relationships, how the FTLP can be applied to contemporary economies, what our expectations of fiscal policy should be moving forward, and much more.   Transcript for the episode can be found here.   Eric’s UVA profile: https://economics.virginia.edu/people/profile/eml3jf Eric’s NBER archive: https://www.nber.org/people/eric_leeper?page=1&perPage=50   Related Links:   *Some Unpleasant Monetarist Arithmetic* by Neil Wallace and Thomas J. Sargent https://www.minneapolisfed.org/research/quarterly-review/some-unpleasant-monetarist-arithmetic   *Equilibria under 'Active' and 'Passive' Monetary and Fiscal Policies* by Eric M. Leeper https://www.researchgate.net/publication/4907434_Equilibria_Under_'Active'_and_'Passive'_Monetary_Policies   *Monetary Science, Fiscal Alchemy* by Eric M. Leeper https://www.nber.org/papers/w16510   *The Fiscal Theory of Price Level with a Bubble* by Markus K. Brunnermeier, Sebastian A. Merkel, and Yuliy Sannikov https://www.nber.org/papers/w27116   *Liquidity Premiums on Government Debt and the Fiscal Theory of the Price Level* by Aleksander Berentsen and Christopher J. Waller https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2943241   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
4/4/202251 minutes, 48 seconds
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Alex Nowrasteh on Population Growth, Immigration, and the Economic Implications for the US

Alex Nowrasteh is the director of Economic and Social Policy Studies at the Cato Institute where he writes widely on US immigration policy. He also has several books on the topic, including his recently co-authored book, *Wretched Refuse? The Political Economy of Immigration and Institutions.* Alex joins Macro Musings to talk about immigration in the United States and its implications for economic growth and policy. Specifically, David and Alex also discuss the current trends in population growth and immigration, the consequences of falling birthrates, Alex’s rebuttals to the most common arguments against immigration, and more.   Check out Conversations with Tyler: https://conversationswithtyler.com, and subscribe to Conversations with Tyler on your favorite podcast app.   Transcript for the episode can be found here.   Alex’s Twitter: @AlexNowrasteh Alex’s Cato profile: https://www.cato.org/people/alex-nowrasteh   Related Links:   *Wretched Refuse? The Political Economy of Immigration and Institutions* by Alex Nowrasteh and Benjamin Powell https://www.cambridge.org/core/books/wretched-refuse/47A037EB552CDB16DC77906072A590AB   *The Most Common Arguments Against Immigration and Why They’re Wrong* by Alex Nowrasteh https://store.cato.org/products/the-most-common-arguments-against-immigration-and-why-theyre-wrong   *The Ultimate Resource* by Julian Simon https://www.amazon.com/Ultimate-Resource-Julian-Lincoln-Simon/dp/0691003696   *Low-Skilled Immigration and the Labor Supply of Highly Skilled Women* by Patricia Cortes and Jose Tessada https://www.aeaweb.org/articles?id=10.1257/app.3.3.88   *The Puzzle of Falling US Birth Rates Since the Great Recession* by Melissa Kearney, Phillip Levine, and Luke Pardue https://www.aeaweb.org/articles?id=10.1257/jep.36.1.151   *More From Less: The Surprising Story of How We Learned to Prosper Using Fewer Resources – And What Happens Next* by Andrew McAfee https://www.simonandschuster.com/books/More-from-Less/Andrew-McAfee/9781982103583   *One Billion Americans: The Case for Thinking Bigger* by Matthew Yglesias https://www.penguinrandomhouse.com/books/636499/one-billion-americans-by-matthew-yglesias/   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
3/28/202257 minutes, 21 seconds
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Kaleb Nygaard on the Governance of the Federal Reserve System

Kaleb Nygaard is a senior research associate at the Yale Program on Financial Stability and runs the website Centralverse, a place where all things central banking are made clear. Kaleb is also a former Chicago Fed staffer. Kaleb joins David on Macro Musings to discuss the governance and institutional details of the Federal Reserve System. Specifically, Kaleb and David get into President Biden’s nominations to the Fed Board of Governors, the nomination process at the Fed, what is driving the short tenures of Fed Governors in recent years, how regional bank presidents get elected, how social media has impacted the problem of groupthink at the Fed, and much more.   Check out Ideas of India: https://www.discoursemagazine.com/tag/ideas-of-india-podcast/, and subscribe to Ideas of India on your favorite podcast app.   Transcript for the episode can be found here.   Kaleb’s Twitter: @KalebNygaard Kaleb’s website: https://kalebnygaard.com/   Related Links:   *Restoring the Promise of Federal Reserve Governance* by Peter Conti-Brown https://www.mercatus.org/publications/monetary-policy/restoring-promise-fed-governance   *Board Diversity Matters: An Empirical Assessment of Community Lending at Federal Reserve-Regulated Banks* by Brian D. Feinstein, Peter Conti-Brown, and Kaleb Nygaard https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4000110   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
3/21/202255 minutes, 30 seconds
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Bill Nelson on the Fed’s Operating System, Standing Repo Facility Stigma, and the Future of the Central Bank’s Balance Sheet

Bill Nelson is a chief economist and an executive vice president at the Bank Policy Institute. Bill was previously a deputy director of the Division of Monetary Affairs at the Federal Reserve Board, where his responsibilities included monetary policy analysis, discount window policy analysis, and the analysis and financial institution supervision. He also worked closely with the BIS working groups on the design of liquidity regulations. Bill is also a previous guest of the podcast, are rejoins Macro Musings to talk about the outlook for US monetary policy, the future of the Fed’s balance sheet, and its implications for the Fed’s operating system and bank regulations. David and Bill also discuss the Fed’s response to current macroeconomic events, the stigma surround the standing repo facility, and how to think about exogenous risks to the US banking system.    Check out Conversations with Tyler: https://conversationswithtyler.com, and subscribe to Conversations with Tyler on your favorite podcast app.   Transcript for the episode can be found here.   Bill’s Bank Policy Institute profile: https://bpi.com/people/bill-nelson/ Bill’s American Banker archive: https://www.americanbanker.com/author/william-nelson-ab3618   Related Links:   *The Fed is Stuck on the Floor: Here’s How It Can Get Up* by Bill Nelson https://bpi.com/the-fed-is-stuck-on-the-floor-heres-how-it-can-get-up/   *More Taxis Sitting Idle* by Bill Nelson https://bpi.com/more-taxis-sitting-idle/   *Systematic Monetary Policy and the Effects of Oil Price Shocks* by Ben Bernanke, Mark Gertler, and Mark Watson https://www.brookings.edu/wp-content/uploads/1997/01/1997a_bpea_bernanke_gertler_watson_sims_friedman.pdf   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
3/14/202256 minutes, 2 seconds
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Matthew Klein on the Economic Fallout from the Russia-Ukraine War

Matthew Klein is the author of The Overshoot, a newsletter that helps readers make sense of the global economy. Matthew also closely follows Eastern Europe and Russia, has written on the economics of the Russian-Ukraine War, and is a returning guest to the podcast. Matthew rejoins David on Macro Musings to discuss this conflict and its broader economic implications. Specifically, Matthew and David discuss the historical context dating back to the Soviet Union and leading up to this conflict, how Russia’s economy has been historically linked to Ukraine’s, the consequences of Europe’s reliance on Russian fossil fuel exports, and the implications of global sanctions against Russia for dollar dominance, globalization, and inflation.   Check out Ideas of India: https://www.discoursemagazine.com/tag/ideas-of-india-podcast/, and subscribe to Ideas of India on your favorite podcast app.   Transcript for the episode can be found here.   Matthew’s Twitter: @M_C_Klein Matthew’s Substack: https://theovershoot.co/about   Related Links:   *Trade Wars or Class Wars* by Matthew C. Klein and Michael Pettis https://www.amazon.com/Trade-Wars-Are-Class-International/dp/0300244177   *Russia Was Already Cutting Off Europe's Gas Before Invading Ukraine. What Can Be Done?* by Matthew Klein https://theovershoot.co/p/russia-was-already-cutting-off-europes?s=r   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
3/7/202254 minutes, 37 seconds
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Emily Hamilton on the Current State of the U.S. Housing Market and Solutions for Reform

Emily Hamilton is a senior research fellow and director of the Urbanity Project at the Mercatus Center at George Mason University. Emily’s research focuses on urban economics and land use policy, and she joins Macro Musings to talk about housing in the United States. Specifically, David and Emily discuss many of the issues present within the American housing market, why we should care about rampant housing shortages, and the most effective avenues we can pursue for largescale reform.   Check out Conversations with Tyler: https://conversationswithtyler.com, and subscribe to Conversations with Tyler on your favorite podcast app.   Transcript for the episode can be found here.   Emily’s Twitter: @ebwhamilton Emily’s Mercatus profile: https://www.mercatus.org/scholars/emily-hamilton   Related Links:   *Light Touch Density: A Series of Policy Briefs on Zoning, Land Use, and a Solution to Help Alleviate the Nation’s Housing Shortage* by Edward Pinto, Tobias Peter, and Emily Hamilton https://www.aei.org/wp-content/uploads/2022/01/Light-Touch-Density-Compiled-FINAL-1.12.2022.pdf?x91208   *2019 Survey of Consumer Finances* by the Federal Reserve Board of Governors https://www.federalreserve.gov/econres/scfindex.htm   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
2/28/202258 minutes, 54 seconds
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Will Diamond on Safe Assets, Risk-Free Rates, and Convenience Yields and their Implications for Policy

William Diamond is an Assistant Professor of Finance at the Wharton School of Business at the University of Pennsylvania. Will joins David on Macro Musings to discuss safe assets, convenience yields, bubbles and public debt and the implications for policy. Specifically, David and Will get into competing theories of interest rates and the rise of New Keynesian thinking, the role of the dollar in the global financial system, the drivers behind the growth in US debt, how the construction of risk-free interest rates unaffected by convenience yields on safe assets can improve our understanding of the financial system in times of stress, and much more.   Check out Ideas of India: https://www.discoursemagazine.com/tag/ideas-of-india-podcast/, and subscribe to Ideas of India on your favorite podcast app.   Transcript for the episode can be found here.   Will’s Twitter: @wdiamond_econ Will’s Wharton profile: https://fnce.wharton.upenn.edu/profile/diamondw/#research   Related Links:   *Threats to Central Bank Independence: High-Frequency Identification with Twitter* by Francesco Bianchi, Thilo Kind & Howard Kung https://www.nber.org/papers/w26308   *Safety Transformation and the Structure of the Financial System* by Will Diamond https://faculty.wharton.upenn.edu/wp-content/uploads/2017/07/modelwriteupnew23.pdf   *From World Banker to World Venture Capitalist: The US External Adjustment and the Exorbitant Privilege* by Helene Ray and P.O. Gourinchas https://papers.ssrn.com/sol3/papers.cfm?abstract_id=788428   *Rational Bubbles and Public Debt Policy: A Quantitative Analysis* by David Domeij and Tore Ellingsen https://www.sciencedirect.com/science/article/abs/pii/S0304393218301909   *Liquidity Premiums on Government Debt and the Fiscal Theory of the Price Level* by Aleksander Berentsen and Christopher J. Waller https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2943241   *Risk Free Interest Rates* by Jules H. van Binsbergen, Will Diamond, and Marco Grotteria https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3242836   *Risk-Free Rates and Convenience Yields Around the World* by Will Diamond, Peter Van Tassel https://faculty.wharton.upenn.edu/wp-content/uploads/2021/11/newdraft_11132021formatfix.pdf   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
2/21/20221 hour, 5 minutes, 14 seconds
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Amanda Rose on the Mission, Governance, and Politics of the SEC and Its Major Challenges Moving Forward

Amanda Rose is a professor at Vanderbilt Law School where she works as a scholar on securities law and the institutional design of the regulatory regimes enforcing those laws. Amanda joins Macro Musings to talk about the Securities and Exchange Commission (SEC), its work and role in promoting financial stability, and her research on the SEC. Amanda and David specifically discuss the politics, governance, and politicization of the SEC, the mission of the agency, and the major issues that it must face moving forward.   Check out Conversations with Tyler: https://conversationswithtyler.com, and subscribe to Conversations with Tyler on your favorite podcast app.   Transcript for the episode can be found here.   Amanda’s Vanderbilt Law profile: https://law.vanderbilt.edu/bio/amanda-rose   Related Links:   *Calculating SEC Whistleblower Awards: A Theoretical Approach* by Amanda Rose https://scholarship.law.vanderbilt.edu/cgi/viewcontent.cgi?article=2143&context=faculty-publications   *SPAC Mergers, IPOs, and the PSLRA’s Safe Harbor: Unpacking Claims of Regulatory Arbitrage* by Amanda Rose https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3945975   *A Response to Calls for SEC-Mandated ESG Disclosure* by Amanda Rose https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=6545&context=law_lawreview   *Should the Securities and Exchange Commission Adopt a Mandatory ESG-Disclosure Framework?* by Amanda Rose https://www.mercatus.org/publications/financial-markets/should-securities-and-exchange-commission-adopt-mandatory-esg   *SEC Announces Enforcement Results for FY 2021* by the U.S. Securities and Exchange Commission https://www.sec.gov/news/press-release/2021-238   *The Chickenshit Club: Why the Justice Department Fails to Prosecute Executives* by Jesse Eisinger https://www.sandmanbooks.com/book/9781501121371   *Can NFTs Be Securities? The SEC Says Yes* by PYMNTS https://www.pymnts.com/nfts/2022/pymnts-nft-series-can-nfts-be-securities-the-sec-says-yes/   *Crypto Exchanges Will Face More Scrutiny, Says SEC Chair* by Rahul Nambiampurath https://finance.yahoo.com/news/crypto-exchanges-face-more-scrutiny-150149395.html#:~:text=SEC%20Chair%20Gary%20Gensler%20has,world%20are%20scrutinizing%20crypto%20exchanges.   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
2/14/202254 minutes, 27 seconds
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Dan Alpert on Current Trends and Tensions in the US Economy

Dan Alpert is an investment banker and a founding Managing Partner of Westwood Capital. He also regularly writes and speaks on big macro-structural issues. Dan joins David on Macro Musings to discuss recent macroeconomic events. Specifically, Dan and David discuss a post-Keynesian account of the global safe asset shortage, the impact of the US policy response to COVID-19, whether inflation will remain a problem heading into 2022, what’s driving the ‘Great Resignation’, whether capital assets are overvalued, and much more.   Check out Ideas of India: https://www.discoursemagazine.com/tag/ideas-of-india-podcast/, and subscribe to Ideas of India on your favorite podcast app.   Transcript for the episode can be found here.   Dan’s Twitter: @DanielAlpert Dan’s Westwood Capital profile: http://www.westwoodcapital.com/ourpeople/daniel-alpert/   Related Links:   *The Age of Oversupply: Overcoming the Greatest Challenge to the Global Economy* by Dan Alpert https://www.penguinrandomhouse.com/books/312886/the-age-of-oversupply-by-daniel-alpert/    *Glut, The US Economy and American Worker In The Age Of Oversupply* by Dan Alpert https://www.thirdway.org/report/glut-the-u-s-economy-and-the-american-worker-in-the-age-of-oversupply   *Inflation In The 21st Century* by Dan Alpert https://scholarship.law.cornell.edu/facpub/1740/   *The Way Forward: Moving from the Post-Bubble, Post-Bust Economy to Renewed Growth and Competitiveness* by Dan Alpert, Robert C. Hockett, and Nouriel Roubini https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1987139   *Marc Lavoie on Canadian Central Bank Policy, Real-time Payments, and the Post-Keynesian Tradition* https://www.mercatus.org/bridge/podcasts/02032020/marc-lavoie-canadian-central-bank-policy-real-time-payments-and-post   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
2/7/202247 minutes, 52 seconds
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Lubos Pastor and Elisabeth Kempf on *Fifty Shades of QE* and the Implications of QE Research

Lubos Pastor is a professor of finance, and Elisabeth Kempf is an associate professor of finance, both at the University of Chicago’s Booth School of Business. They join David on Macro Musings to talk about their recent paper, *Fifty Shades of QE: Comparing Findings of Central Bankers and Academics*. Lubos, Elisabeth, and David specifically discuss the scope, design, and findings of their study, the theory behind QE’s impact on output and inflation, the career implications of QE research, and more.   Check out Conversations with Tyler: https://conversationswithtyler.com, and subscribe to Conversations with Tyler on your favorite podcast app.   Transcript for the episode can be found here.   Lubos’s University of Chicago profile: https://www.chicagobooth.edu/faculty/directory/p/lubos-pastor Lubos’s NBER archive: https://www.nber.org/people/lubos_pastor?page=1&perPage=50   Elisabeth’s University of Chicago Profile: https://www.chicagobooth.edu/faculty/directory/k/elisabeth-kempf Elisabeth’s website: https://sites.google.com/site/elikempf/   Related Links:   *Fifty Shades of QE: Comparing Findings of Central Bankers and Academics* by Lubos Pastor, Elisabeth Kempf, Brian Fabo, and Martina Jancokova https://www.nber.org/system/files/working_papers/w27849/w27849.pdf   *The Federal Reserve System’s Influence on Research in Monetary Economics* by Lawrence H. White https://econjwatch.org/File+download/90/2005-08-white-invest_apparatus.pdf?mimetype=pdf   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
1/31/202243 minutes
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BONUS: George Selgin on the Fed Taper and Shrinking the Fed’s Balance Sheet

George Selgin is a senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute and is also a long-time returning guest of Macro Musings. In this bonus segment from the previous conversation, George rejoins the podcast to talk about the Fed’s near-term plans to shrink its balance sheet, the impact of the standing repo facility on demand for reserves, the potential benefits of returning to a corridor operating system, and more.     Check out Ideas of India: https://www.discoursemagazine.com/tag/ideas-of-india-podcast/ Subscribe to Ideas of India on your favorite podcast app.   Transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato Institute profile: https://www.cato.org/people/george-selgin   Related Links:   *Floored!* by George Selgin https://www.cato.org/working-paper/floored   *The Menace of Fiscal QE* by George Selgin https://www.cato.org/books/menace-fiscal-qe   *Churning at the Fed* by Milton Friedman https://miltonfriedman.hoover.org/internal/media/dispatcher/214260/full   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
1/26/202232 minutes, 4 seconds
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George Selgin on the Future of CBDC, Fed Accounts, and Stablecoins

George Selgin is a senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute and is also a long-time returning guest of Macro Musings. He rejoins the podcast to talk about central bank digital currency, stablecoins, and the future of the Fed’s balance sheet and operating system. Specifically, David and George also discuss the challenges presented by CBDC and Fed accounts, how they could create financial instability, George’s proposal for wholesale CBDC, and more.   Check out Conversations with Tyler: https://conversationswithtyler.com, and subscribe to Conversations with Tyler on your favorite podcast app.   Transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato Institute profile: https://www.cato.org/people/george-selgin   Related Links:   *Central Bank Digital Currency as a Potential Source of Financial Instability* by George Selgin https://www.cato.org/cato-journal/spring/summer-2021/central-bank-digital-currency-potential-source-financial-instability#old-fashioned-bank-runs   *Money and Payments: The U.S. Dollar in the Age of Digital Transformation* by the Federal Reserve Board of Governors https://www.federalreserve.gov/publications/files/money-and-payments-20220120.pdf   *George Selgin on the Past, Present, and Future of a Real-Time Payments System* https://www.mercatus.org/bridge/podcasts/11112019/george-selgin-past-present-and-future-real-time-payments-system   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
1/24/202252 minutes, 49 seconds
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Henry Curr on the Myths and Uncomfortable Truths about QE

Henry Curr is the economics editor for the Economist Magazine and a returning guest to the show. Henry has a new working paper out titled, “Money Printers Go Grrrr: Three Myths and Three Uncomfortable Truths about Quantitative Easing.” Henry joins Macro Musings to discuss these three myths and uncomfortable truths about QE. Specifically, David and Henry discuss the continued relevance of quantitative easing as a policy tool, QE’s relationship to financial markets and its effect on the banking sector, whether we can estimate the magnitude of its effect on interest rates, whether QE necessarily boosts the monetary base, and much more.   Check out Ideas of India, another Mercatus original podcast: https://www.discoursemagazine.com/tag/ideas-of-india-podcast/   Transcript for the episode can be found here.   Henry’s Twitter: @Henry_Curr Henry’s Economist profile: https://mediadirectory.economist.com/people/henry-curr/ Henry’s website: http://www.henrycurr.com/   Related Links:   *Money Printers Go Grr: Three Myths and Three Uncomfortable Truths about Quantitative Easing* by Henry Curr https://spe.org.uk/reading-room/ryb-essays/2020-21-rybczynski-prize-essay/   *Fifty Shades of QE: Comparing Findings of Central Bankers and Academics* by Brian Fabo, Martina Jančoková, Elisabeth Kempf and Ľuboš Pástor https://www.nber.org/papers/w27849   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
1/17/202251 minutes
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Lorie Logan on Monetary Policy Operations, the Fed’s New Standing Repo Facility, and the Future of the Fed’s Balance Sheet

Lorie Logan is an executive vice president in the Markets Group of the Federal Reserve Bank of New York. In that role, she’s the manager of the System Open Market Account (SOMA), for the Federal Open Market Committee (FOMC), and she is also the head of the market operations, monitoring, and analysis. Lorie joins Macro Musings to talk about the operations side of monetary policy and her work at the New York Fed. Specifically, David and Lorie discuss the “dash for cash” during the March 2020 Treasury market crisis, the Fed’s new standing repo facility, the future of the central bank’s balance sheet, and more.   Transcript for the episode can be found here.   Lorie’s New York Fed profile: https://www.newyorkfed.org/aboutthefed/orgchart/logan Lorie’s Fed in Print archive: https://fedinprint.org/search?facets[]=authors_literal_array:Logan%2C+Lorie   Related Links:   *Monetary Policy Implementation: Adapting to a New Environment* by Lorie Logan https://www.newyorkfed.org/newsevents/speeches/2021/log211014   *Liquidity Shocks: Lessons Learned from the Global Financial Crisis and the Pandemic* by Lorie Logan https://www.newyorkfed.org/newsevents/speeches/2021/log210811   *Recent Disruptions and Potential Reforms in the U.S. Treasury Market: A Staff Progress Report* by the Inter-Agency Working Group https://home.treasury.gov/system/files/136/IAWG-Treasury-Report.pdf   *U.S. Treasury Markets: Steps Toward Increased Resilience* by the G30 Working Group on Treasury Market Liquidity https://group30.org/publications/detail/4950   *Report of the Task Force on Financial Stability* by Glenn Hubbard et al. https://www.brookings.edu/research/report-of-the-task-force-on-financial-stability/   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
1/10/202236 minutes, 51 seconds
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Paul Krugman on the Year of Inflation Infamy

Paul Krugman is a Nobel Laureate in economics, a columnist at The New York Times, and a Distinguished Professor of Economics at the Graduate Center of the City University of New York. He rejoins David on Macro Musings to discuss the great inflation surge of 2021 and its implications for policy. Specifically, David and Paul discuss the state of public opinion surrounding inflation, whether the level of aggregate demand or its composition is the more important driver, what the state of the economy would be if the Fed had more aggressively countered inflation, whether the Fed squeeze is the appropriate response, and much more.   Transcript for the episode can be found here.   Paul’s Twitter: @paulkrugman Paul’s NYT profile: https://www.nytimes.com/column/paul-krugman   Related Links:   *The Year of Inflation Infamy* by Paul Krugman https://www.nytimes.com/2021/12/16/opinion/inflation-economy-2021.html   *It's Baaack: Japan's Slump and the Return of the Liquidity Trap* by Paul Krugman https://www.brookings.edu/wp-content/uploads/1998/06/1998b_bpea_krugman_dominquez_rogoff.pdf   *The Princeton School and the Zero Lower Bound* by Scott Sumner https://www.mercatus.org/publications/monetary-policy/princeton-school-and-zero-lower-bound   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
1/3/202241 minutes, 55 seconds
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David Beckworth on the Safe Asset Theory of Inflation, Comparing Central Bank Frameworks, and a Year of Macro Musings in Review

In this special end-of-the-year episode of Macro Musings, David Beckworth joins guest host David Andolfatto of the St. Louis Fed to discuss a wide range of macroeconomic topics, including podcast highlights from the whole of 2021. More specifically, both Davids talk about the similarities and differences between average inflation targeting and NGDP targeting, the recent inflation puzzles that have plagued the macroeconomy, David’s safe asset theory of inflation, and more.   Want to support the show? Visit donate.mercatus.org/podcasts   Transcript for the episode can be found here.   David Beckworth’s Twitter: @DavidBeckworth David Beckworth’s blog: http://macromarketmusings.blogspot.com/ David Beckworth’s Mercatus profile: https://www.mercatus.org/scholars/david-beckworth   David Andolfatto’s Twitter: @dandolfa David Andolfatto’s St. Louis Fed profile: https://www.stlouisfed.org/about-us/leadership-governance/bank-officers/executive-bios/david-andolfatto   Related Links:   *The Safe Asset Shortage and the Low Inflation of 2010-2019: A Money Demand View* by David Beckworth https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3992846   *The Prospect of Fiscal Dominance in the United States: A New Quantity Theory Perspective* by David Beckworth https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3969473   *The Fiscal Theory of Price Level with a Bubble* by Markus Brunnermeier, Sebastian Merkel, and Yuliy Sannikov https://www.nber.org/papers/w27116
12/27/202147 minutes, 59 seconds
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Talmon Smith on the Great Inflation Surge of 2021

Talmon Smith is an economics reporter for The New York Times and joins David on Macro Musings to talk about the great inflation surge of 2021 and its implications for policy and politics. Specifically, David and Talmon discuss the potential drivers and implications of the great inflation surge that has taken place in 2021, the current and future state of supply chains, the impact of COVID-era stimulus, the state of the labor market, the political implications of the inflation surge, and much more.   Want to support the show? Visit donate.mercatus.org/podcasts.   Transcript for the episode can be found here.   Talmon’s Twitter: @talmonsmith Talmon’s New York Times profile: https://www.nytimes.com/by/talmon-joseph-smith   Related Links:   *One-year jump in energy prices is a big factor in inflation’s jump*  by Talmon Smith https://www.nytimes.com/live/2021/12/10/business/inflation-cpi-stock-market-news#one-year-jump-in-energy-prices-is-a-big-factor-in-inflations-jump   *Americans’ Pandemic-Era ‘Excess Savings’ Are Dwindling for Many* by Talmon Smith https://www.nytimes.com/2021/12/07/business/pandemic-savings.html   *President Biden's job approval sinking on inflation, crime and COVID: POLL* By Brittany Shepherd https://abcnews.go.com/Politics/president-bidens-job-approval-sinking-inflation-crime-covid/story?id=81701113   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
12/20/202147 minutes, 57 seconds
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Yesha Yadav on the Fragilities in the Treasury Market and Solutions for Reform

Yesha Yadav is a law professor and associate dean at the Vanderbilt University Law School, where she works on banking and financial regulation, securities regulation, and the law of money and payment system. Yesha has written a recent paper titled, *The Failed Regulation of US Treasury Markets*, and she joins Macro Musings to discuss it. Specifically, David and Yesha talk about the implications of the 2020 Treasury market collapse, the fragmented nature of the Treasury market’s regulatory structure, solutions for reform, and more.   Transcript for the episode can be found here.   Yesha’s Vanderbilt Law profile: https://law.vanderbilt.edu/bio/yesha-yadav Yesha’s Google Scholar archive: https://scholar.google.com/citations?user=Dn5cmSQAAAAJ&hl=en   Related Links:   *The Failed Regulation of U.S. Treasury Markets* by Yesha Yadav https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3365829   *Fragile Financial Regulation* by Pradeep Yadav and Yesha Yadav https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3685404   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
12/13/202150 minutes, 26 seconds
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Carola Binder and Christina Parajon Skinner on Populism and Legitimacy at the Federal Reserve

Carola Binder is an Associate Professor of Economics at Haverford College, and Christina Parajon Skinner is an assistant professor at the Wharton School at the University of Pennsylvania. Both are returning guests to Macro Musings and they rejoin the podcast to talk about populism at the Fed and its implications for policy. Specifically, they discuss rising technopopulism at the Fed, the effect of populist pressures on its legitimacy, the importance of balancing experimentation and intellectual freedom with managing risks of politicization at the Fed, as well as their thoughts on the recent bouts of inflation.   Transcript for the episode can be found here.   Carola’s Twitter: @cconces Carola’s blog: https://carolabinder.blogspot.com/ Carola’s Haverford profile: https://carolabinder.sites.haverford.edu/   Christina’s Twitter: @CParaSkinner Christina’s Wharton profile: https://lgst.wharton.upenn.edu/profile/skinnerc/   Related Links:   Cato Institute 39th Annual Monetary Conference: Panel 1: The Populist Challenge to Fed Independence https://www.cato.org/multimedia/events/39th-annual-monetary-conference-panel-1-populist-challenge-fed-independence   *Technopopulism and Central Banks* by Carola Binder https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3823456   *Technopopulism: The New Logic of Democratic Politics* by Christopher J. Bickerton and Carlo Invernizzi Accetti https://oxford.universitypressscholarship.com/view/10.1093/oso/9780198807766.001.0001/oso-9780198807766   *Central Bank Activism* by Christina Parajon Skinner https://www.newyorkfed.org/medialibrary/Microsites/fmlg/files/2021/Skinner_Central%20Bank%20Activism.pdf   *Laboratories of Central Banking* by Carola Binder and Christina Parajon Skinner https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3956845   *Fifty Shades of QE: Comparing Findings of Central Bankers and Academics* by Brian Fabo, Martina Jančoková, Elisabeth Kempf, and Ľuboš Pástor https://www.nber.org/papers/w27849   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
12/6/202153 minutes, 53 seconds
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Matthew Klein on Recent Inflationary Trends and What to Expect in the Future

Matthew Klein is the author of The Overshoot, a newsletter that helps readers make sense of the global economy. Matt is also a returning guest to the podcast, and rejoins Macro Musings to talk about the hot topic of inflation and its outlook. Specifically, David and Matt discuss what is driving trend inflation, Matt’s decomposition of the CPI, whether or not we should be worried about inflationary trends, and more.   Transcript for the episode can be found here.   Matthew’s Twitter: @M_C_Klein Matthew’s Substack: https://theovershoot.co/about   Related Links:   *The Case for Patience on Inflation* by Matthew Klein https://theovershoot.co/p/the-case-for-patience-on-inflation   *What’s Going On With Interest Rates? (Part 1)* by Matthew Klein https://theovershoot.co/p/whats-going-on-with-interest-rates   *Fed Policy Must Adjust for Inflation* by Martin Wolf https://www.ft.com/content/dc3bedc7-5694-4868-8b86-f9a215966f52   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
11/29/202150 minutes, 32 seconds
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Markus Brunnermeier on *The Resilient Society*

Markus Brunnermeier is a professor of economics and the director of the Bendheim Center for Finance at Princeton University. Markus is also a nonresident senior fellow at the Peterson Institute for International Economics. Markus joins Macro Musings to discuss his new book, titled “The Resilient Society,” as well as his work on safe assets and their implications for inflation. Specifically, David and Markus discuss the implications of the fiscal theory of the price level for inflation, the role of the Fed in stabilizing money markets, what is meant by “resilience” compared to “robustness” in economies, and much more.   Transcript can be found here.   Markus’s Twitter: @MarkusEconomist Markus’s Princeton profile: https://scholar.princeton.edu/markus/home   Related Links:   *The Fiscal Theory of the Price Level with a Bubble* by Markus Brunnermeier https://scholar.princeton.edu/markus/publications/fiscal-theory-price-level-bubble   *The Resilient Society* by Markus Brunnermeier https://bcf.princeton.edu/the-resilient-society/   *What Makes US Government Bonds Safe Assets?* by Zhiguo He, Arvind Krishnamurthy, and Konstantin Milbradt https://www.aeaweb.org/articles?id=10.1257/aer.p20161109   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
11/22/202151 minutes, 50 seconds
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Ajmal Ahmady on the Afghan Economy and the Challenges Facing the Nation’s Future

Ajmal Ahmady is the former acting governor of the Central Bank of Afghanistan and is now a senior fellow at the Harvard Kennedy School of Government. Ajmal joins Macro Musings to talk about his experience as a central bank governor in Afghanistan and the challenges now facing the nation’s economy. Specifically, David and Ajmal discuss his unique role as the country’s central bank chief, the structure of the Afghan monetary system, the state of the nation’s economy moving forward, and more.   Transcript for the episode can be found here.   Ajmal’s Twitter: @aahmady Ajmal’s Harvard biography: https://www.hks.harvard.edu/centers/mrcbg/about/senior-fellows#ahmady Ajmal's research: https://www.hks.harvard.edu/sites/default/files/centers/mrcbg/programs/senior.fellows/2021-22/Ahmady_Research%20Proposal%20(summary).pdf   Related Links:   Ajmal’s Twitter thread about Afghanistan’s collapse: https://twitter.com/aahmady/status/1427265049668636674?lang=en   *Why Afghanistan Fell: An Insider’s Account of What Went Wrong* by Ajmal Ahmady https://www.foreignaffairs.com/articles/afghanistan/2021-10-11/why-afghanistan-fell   *Afghanistan Faces an Economic Crisis, as Well as a Humanitarian One* by Ajmal Ahmady https://www.ft.com/stream/75ed5ed6-883f-402c-b04b-4d1ddd5ab670   *The Taliban Can't Print Cash and Other Afghan Business Challenges* by Ajmal Ahmady https://www.bloomberg.com/opinion/articles/2021-09-07/the-taliban-can-t-mint-money-and-other-business-challenges-in-afghanistan   *Severe Drought Adds to Afghanistan’s Woes, Endangering Millions as Economy Collapses* by Sune Engel Rasmussen https://www.wsj.com/articles/severe-drought-adds-to-afghanistans-woes-endangering-millions-as-economy-collapses-11633872935#:~:text=Severe%20Drought%20Adds%20to%20Afghanistan's,Millions%20as%20Economy%20Collapses%20%2D%20WSJ&text=The%20drought%20has%20compounded%20the,Taliban%20overthrew%20the%20previous%20government.    *Regional Power Back Aid for Afghanistan as Russia Hosts the Taliban* by Aljazeera https://www.aljazeera.com/news/2021/10/20/russia-hosts-taliban-for-talks-but-warns-no-recognition-for-now   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
11/15/202137 minutes, 56 seconds
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Peter Stella on the Fiscal Theory of the Price Level

Peter Stella is the former Head of the IMF Central Banking division and has researched and written extensively on safe assets, collateral and central bank operations. Peter now hosts a website Central Banking Archeology. Peter joins David on Macro Musings to discuss the role of money and its relationship to inflation as well as its relationship to the payment system. Specifically, David and Peter discuss the fiscal theory of the price level, how rising indebtedness can signal higher inflation in the future, the implications of the fiscal theory for contemporary fiscal and monetary policy going forward, and much more.   Transcript for the episode can be found here.   Peter’s Twitter: @Stellar_Consult Peter’s website: https://www.centralbankarchaeology.com/ Peter’s Voxeu profile: https://voxeu.org/users/peterstella0 Peter’s Research Gate archive: https://www.researchgate.net/profile/Peter_Stella   Related Links:    *Some Incredible Monetarist Arithmetic* by Peter Stella https://www.centralbankarchaeology.com/post/some-incredible-monetarist-arithmetic   *Some Alternative Monetary Facts* by Peter Stella, Manmohan Singh, and Apoorv Bhargava https://www.imf.org/en/Publications/WP/Issues/2021/01/08/Some-Alternative-Monetary-Facts-49975   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
11/8/202149 minutes, 2 seconds
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Robert Orr on Supply Side Bottlenecks in the US Healthcare System and Solutions for Reform

Robert Orr is a policy analyst at the Niskanen Center where he focuses on welfare, healthcare, and labor market policy. Robert joins Macro Musings to talk about one of the more important sectors of the US economy, healthcare, and some of the biggest supply side bottlenecks the industry faces. Specifically, David and Robert discuss the uniqueness of the US healthcare system, the reason for massive spending within the healthcare industry, and how to fix the supply bottlenecks that have emerged.   Transcript for the episode can be found here.   Robert’s Twitter: @Robert_t_Orr Robert’s Niskanen profile: https://www.niskanencenter.org/author/robert-orr/   Related Links:   *The Planning of U.S. Physician Shortages* by Robert Orr https://www.niskanencenter.org/the-planning-of-u-s-physician-shortages/   *The U.S. Has Much to Gain from More Doctors* by Robert Orr https://www.niskanencenter.org/the-u-s-has-much-to-gain-from-more-doctors/   *Unmatched: Repairing the U.S. Medical Residency Pipeline* by Robert Orr https://www.niskanencenter.org/the-u-s-has-much-to-gain-from-more-doctors/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
11/1/202138 minutes, 51 seconds
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George Selgin on Bitcoin and the Future of CBDCs

George Selgin is the director emeritus of the Cato Institute’s Center for Monetary and Financial Alternatives and is a returning guest to Macro Musings. George rejoins David on the podcast to discuss cryptocurrency, stable coins, CBDCs, and a push for a higher inflation target. Specifically, George and David discuss the category of ‘synthetic commodity money’ and how bitcoin is a potential example, the current state of Bitcoin amidst El Salvador’s transition to Bitcoin as its legal tender, the role of fintechs in the potential future of a Fed central bank digital currency, and much more.   Transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato Institute profile: https://www.cato.org/people/george-selgin   Related Links:   *Synthetic Commodity Money* by George Selgin https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2000118   *The Denationalization of Money* by F.A. Hayek https://www.amazon.com/Denationalization-Money-Analysis-Concurrent-Currencies/dp/0255360878   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
10/25/202147 minutes, 20 seconds
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Peter Conti-Brown on the Fed Trading Scandal, the Fed Chair Nomination Process, and Central Bank Governance

Peter Conti-Brown is a legal scholar and financial historian at the University of Pennsylvania and is a nonresident fellow in economic studies at the Brookings Institution. Peter’s scholarship focuses on the legal and historical issues of the Federal Reserve system, and he rejoins Macro Musings to talk about the many facets of Fed governance. David and Peter specifically discuss the Federal Reserve’s recent trading scandal, the Fed Chair nomination process, the central bank’s role in fighting climate change, and much more.   Transcript for the episode can be found here.   Peter’s Twitter: @PeterContiBrown Peter’s Brookings profile: https://www.brookings.edu/author/peter-conti-brown/ Peter’s Wharton profile: https://lgst.wharton.upenn.edu/profile/petercb/   Related Links:   *Technocratic Pragmatism, Bureaucratic Expertise, and the Federal Reserve* by Peter Conti-Brown and David Wishnick https://www.yalelawjournal.org/feature/technocratic-pragmatism-bureaucratic-expertise-and-the-federal-reserve   *Restoring the Promise of Federal Reserve Governance* by Peter Conti-Brown https://www.mercatus.org/publications/monetary-policy/restoring-promise-fed-governance#:~:text=In%20%E2%80%9CRestoring%20the%20Promise%20of,it%20was%20designed%20to%20be.   Peter Conti-Brown on *Restoring the Promise of Federal Reserve Governance*: https://www.mercatus.org/bridge/podcasts/01062020/peter-conti-brown-restoring-promise-federal-reserve-governance   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
10/18/202153 minutes, 46 seconds
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Scott Sumner on The Money Illusion

Scott Sumner is David’s colleague and the Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center. Scott is also a returning guest to the podcast and joins David on Macro Musings to discuss his new book, The Money Illusion: Market Monetarism, the Great Recession, and the Future of Monetary Policy. Specifically, David and Scott discuss common misconceptions about the 2008-09 Recession, why bubble narratives too often miss the mark when explaining rising asset prices, whether the Fed’s adoption of average inflation targeting signals that it is moving toward a level target, and much more.   Transcript for the episode can be found here.   Scott’s Twitter: @ScottSumnerTMI Scott’s blog: https://www.themoneyillusion.com/ Scott’s Mercatus profile: https://www.mercatus.org/scholars/scott-sumner   Related Links:   *The Money Illusion: Market Monetarism, the Great Recession, and the Future of Monetary Policy* By Scott Sumner https://www.mercatus.org/publications/monetary-policy/money-illusion-market-monetarism-great-recession-and-future-monetary   *Eight Centuries of Global Real Interest Rates, R-G, and the ‘Suprasecular’ Decline, 1311–2018* by Paul Schmelzing https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3485734   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
10/11/202150 minutes, 50 seconds
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Chris Russo on the 2021 Debt Limit Fight, Its Potential Impacts, and Solutions for Reform

Chris Russo is a post-graduate research fellow in the Monetary Policy Program of the Mercatus Center at George Mason University and is a former economist at the New York Federal Reserve Bank. He re-joins Macro Musings to talk about the growing concerns over the US debt ceiling, what it could mean for the economy, and how to fix the issue.   Transcript for the episode can be found here.   Chris’s Twitter: @RussoEcon Chris’s Mercatus profile: https://www.mercatus.org/scholars/christopher-russo Chris’s Github site: https://christopher-russo.github.io/about/   Related Links:   *Permanently Suspend the Debt Limit* by Christopher Russo https://thehill.com/opinion/finance/553827-permanently-suspend-the-debt-limit   *What the Fed Will Do if Congress Doesn’t Fix the Debt Ceiling* by Christopher Russo https://www.barrons.com/articles/inside-the-feds-playbook-for-a-dollar-default-51622055588   *America’s Need to Pay Its Bills Has Spawned a Political Game* by Jim Tankersley https://www.nytimes.com/2021/09/26/business/economy/america-debt-limit-political-game.html   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
10/4/202153 minutes, 45 seconds
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Hanno Lustig on Dollar Dominance, Dollar Safety, and the Global Financial Cycle

Hanno Lustig is a professor of finance at Stanford University, and a senior fellow at the Stanford Institute for Economic Policy Research. Hanno joins David on Macro Musings to discuss his work on dollar safety, safe assets, convenience yields, and more. More specifically, Hanno and David discuss the dollar dominance in global financial markets, how the US’s status as the world’s safe asset provider reinforces its exorbitant privilege in money markets, whether the countercyclical demand for safe assets can help explain why US inflation has been so low this past decade, how years of low interest rate policy might have contributed to the growing wealth gap, and much more.   Transcript for the episode can be found here.   Hanno’s Twitter: @HannoLustig Hanno’s Stanford profile: https://www.gsb.stanford.edu/faculty-research/faculty/hanno-lustig   Related Links:   *Dollar Safety and the Global Financial Cycle* by Zhengyang Jiang, Arvind Krishnamurthy, and Hanno Lustig https://www.gsb.stanford.edu/faculty-research/working-papers/dollar-safety-global-financial-cycle   *Mind the Gap in Sovereign Debt Markets: The U.S. Treasury basis and the Dollar Risk Factor* by Arvind Krishnamurthy and Hanno Lustig https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3443231   *Manufacturing Risk-Free Government Debt* by Zhengyang Jiang, Hanno Lustig, Stijn Van Nieuwerburgh, and Mindy Z. Xiaolan https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3646430   *US Government Debt Valuation Puzzle* by Zhengyang Jiang, Hanno Lustig, Stijn Van Nieuwerburgh, and Mindy Z. Xiaolan https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3333517   *The Fiscal Theory of Price Level with a Bubble* by Markus K. Brunnermeier, Sebastian A. Merkel and Yuliy Sannikov https://www.nber.org/papers/w27116   *Debt As Safe Asset: Mining the Bubble* by Markus K. Brunnermeier, Sebastian Merkel, and Yuliy Sannikov https://scholar.princeton.edu/markus/publications/debt-safe-asset-mining-bubble   *The Safety Trap* by Ricardo J. Caballero and Emmanuel Farhi https://www.nber.org/papers/w19927   *Financial and Total Wealth Inequality with Declining Interest Rates* by Daniel Greenwald, Matteo Leombroni, Hanno Lustig, and Stijn Van Nieuwerburgh https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3789220   *The Saving Glut of the Rich* by Atif Mian, Ludwig Straub, and Amir Sufi https://scholar.harvard.edu/straub/publications/saving-glut-rich-and-rise-household-debt   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
9/27/202151 minutes, 20 seconds
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Megan Greene on the Future of CBDC and How Central Banks Should Respond to Climate Change

Megan Greene is a senior fellow at the Harvard Kennedy School of Government and was formerly the global chief economist at Manulife John Hancock Asset Management. Megan is also a returning guest to the podcast and rejoins David to talk about the prospects of central bank digital currency as well as how to conduct climate change policy from a central banking angle.   Transcript for the episode can be found here.   Megan’s Twitter: @economistmeg Megan’s website: https://economistmeg.com/about/ Megan’s Financial Times archive: https://www.ft.com/megan-greene   Related Links:   *Central Banks Need to Go Slow on Digital Currencies* by Megan Greene https://www.ft.com/content/21e3affe-8c57-4bac-b9c5-21b645e93d7c   *Adapting Central Bank Operations to a Hotter World: Reviewing Some Options* by the Network for Greening the Financial System https://www.ngfs.net/sites/default/files/media/2021/06/17/ngfs_monetary_policy_operations_final.pdf   *Megan Greene and Eric Lonergan on Dual Interest Rates and the Prospects of Average Inflation Targeting* https://www.mercatus.org/bridge/podcasts/10052020/megan-greene-and-eric-lonergan-dual-interest-rates-and-prospects-average   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
9/20/202153 minutes, 41 seconds
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Joseph Wang on the Fed’s Impact on Money Markets

Joseph Wang is a former senior trader on the open market desk at the Federal Reserve Bank in New York and the author of the book Central Banking 101. He also blogs at fedguy.com and is active on Twitter. Joseph joins Macro Musings to discuss what has happened at the Fed from the operational side, and we consider its implications for money markets. Specifically, Joseph and David discuss recent events from the perspective of the Federal Reserve trading desk, Joseph’s conception of a two-tiered monetary system, continued dollar dominance in global money markets, whether the Fed’s overnight repo facility is truly a temporary facility or trending towards a permanent one, and much more.   Transcript for the episode can be found here.   Joseph’s Twitter: @FedGuy12 Joseph’s website: http://fedguy.com/   Related Links:   *QE Zombifies Money Markets* by Joseph Wang https://fedguy.com/qe-zombifies-money-markets/   *The Gravitational Pull of Zero* by Joseph Wang https://fedguy.com/the-gravitational-pull-of-zero/   *RRP At The ZLB* by Joseph Wang https://fedguy.com/rrp-at-the-zlb/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
9/13/202157 minutes, 20 seconds
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Philippa Sigl-Glöckner on the Debt Brake, German Fiscal Policy, and Full Capacity Utilization

Philippa Sigl-Glöckner is the director of the German think tank Dezernat Zukunft, or the Institute for Macrofinance, and was formerly a part of the German Federal Ministry of Finance. Philippa joins Macro Musings to talk about fiscal policy in Germany, as well as her new paper, *A New Fiscal Policy for Germany*. Specifically, David and Philippa discuss the historical context for German fiscal policy, the three big economic challenges for Germany, and how the country can achieve full capacity utilization in the future.   Transcript for the episode can be found here.   Philippa’s Twitter: @PhilippaSigl Philippa’s website: http://philippasigl.com/ Philippa’s Forbes profile: https://www.forbes.com/profile/philippa-sigl-glockner/?sh=383fb0233d30   Related Links:   *A New Fiscal Policy for Germany* by Philippa Sigl-Glöckner, Max Krahe, Pola Schneemelcher, Florian Schuster, Viola Hilbert, Henrika Meyer https://dezernatzukunft.org/wp-content/uploads/2021/07/A-new-fiscal-policy-for-Germany.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
9/6/202148 minutes, 35 seconds
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Jennifer Murtazashvili on Recent Developments in Afghanistan and Lessons for State Capacity Building

Jennifer Murtazashvili is an associate professor of political science at the University of Pittsburgh and directs the Center for Governance and Markets. Jennifer is also an expert on all things Afghanistan, given her experience working there and advising governments and international organizations on issues related to Afghanistan. She also has a new book titled, *Land, the State, and War: Property Institutions and Political Order in Afghanistan*, and joins the show to talk about it. Jennifer and David also discuss the recent developments as well as long-term developments in the country and lessons for state capacity building.   Transcript for the episode can be found here.   Jennifer’s Twitter: @jmurtazashvili Jennifer’s University of Pittsburgh profile: https://gspia.pitt.edu/faculty-and-staff/jennifer-brick-murtazashvili   Related Links:   *Land, the State, and War: Property Institutions and Political Order in Afghanistan* by Jennifer Murtazashvili and Ilia Murtazashvili https://www.cambridge.org/core/books/land-the-state-and-war/A7B8C98CB24780A3CC0EA1CD265D888A   *Informal Federalism: Self-Governance and Power Sharing in Afghanistan* by Jennifer Murtazashvili https://academic.oup.com/publius/article-abstract/44/2/324/1873292   *The Politics of Land Property Rights* by Meina Cai, Ilia Murtazashvili and Jennifer Murtazashvili https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3393160   *Bring the Afghans to America* by Benjamin Powell and Alex Nowrasteh https://thehill.com/blogs/congress-blog/homeland-security/568964-bring-the-afghans-to-america?rl=1   *Inside Afghanistan’s Cryptocurrency Underground as the Country Plunges into Turmoil* by MacKenzie Sigalos https://www.cnbc.com/2021/08/21/bitcoin-afghanistan-cryptocurrency-taliban-capital-flight.html   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/30/202153 minutes, 31 seconds
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Bill Nelson on the Growth of the Federal Reserve

Bill Nelson is a chief economist and an executive vice president at the Bank Policy Institute. Bill previously was a deputy director of the Division of Monetary Affairs at the Federal Reserve Board where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. Bill also worked closely with the BIS working groups and the design of liquidity regulations. Bill rejoins David on Macro Musings to discuss his article titled, “I Don't Know Why She Swallowed a Fly,” which looks back at the significant growth of the Federal Reserve, both in its reach and in its size, since the Great Recession of 2007-09. Additionally, Bill and David discuss steps the Fed could take to return to a reasonably sized institution, conducting policy with a light imprint on financial markets.   Transcript for the episode can be found here.   Bill’s SIFMA profile: https://www.sifma.org/people/bill-nelson/ Bill’s BPI archive: https://bpi.com/tag/bill-nelson/ Bill’s American Banker archive: https://www.americanbanker.com/author/william-nelson-ab3618   Related Links:   *I Don’t Know Why She Swallowed a Fly* by Bill Nelson https://morningconsult.com/opinions/i-dont-know-why-she-swallowed-a-fly/   *Why Do We Need Both Liquidity Regulations and a Lender of Last Resort? A Perspective from Federal Reserve Lending during the 2007-09 U.S. Financial Crisis* by Bill Nelson, Mark Carlson, and Burcu Duygan-Bump https://www.federalreserve.gov/econresdata/feds/2015/files/2015011pap.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/23/202151 minutes, 26 seconds
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Arthur Turrell on Economic Data, Modeling, and the Future of Nuclear Energy

Arthur Turrell is the deputy director at the data science campus for the UK Office of National Statistics (ONS). Arthur is also a former researcher at the Bank of England and a nuclear fusion scientist. He joins Macro Musings to talk about his work at the Bank of England, the future of economic data, and his new book on nuclear fusion titled, *The Star Builders: Nuclear Fusion and the Race to Power the Planet*.   Transcript for the episode can be found here.   Arthur’s Twitter: @arthurturrell Arthur’s website: http://aeturrell.com/ Arthur’s Bank of England profile: https://www.bankofengland.co.uk/research/researchers/arthur-turrell   Related Links:   *The Star Builders: Nuclear Fusion and the Race to Power the Planet* by Arthur Turrell https://www.simonandschuster.com/books/The-Star-Builders/Arthur-Turrell/9781982130664   *Coding for Economists* by Arthur Turrell https://aeturrell.github.io/coding-for-economists/intro.html   *Why Software Is Eating The World* by Marc Andreessen https://www.wsj.com/articles/SB10001424053111903480904576512250915629460   *Solving Heterogeneous General Equilibrium Economic Models with Deep Reinforcement Learning* by Edward Hill, Marco Bardoscia, and Arthur Turrell https://arxiv.org/pdf/2103.16977.pdf   Princeton’s *Net-Zero America* Project: https://netzeroamerica.princeton.edu/?explorer=year&state=national&table=2020&limit=200   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/16/202152 minutes, 13 seconds
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Kate Judge and Anil Kashyap on How to Improve US Financial Stability

Kathryn Judge is a professor of law at Columbia Law School and editor of the journal of Financial Regulation. Anil Kashyap is a professor of economics and finance at the University of Chicago and is a member of the Bank of England's financial policy committee. Kate and Anil join David on Macro Musings to discuss their work on the Task Force on Financial Stability that recently released a report on how to improve financial stability in the US. Specifically, they discuss the origins of the Task Force on Financial Stability, the dynamics of the Treasury Market over the past year, why money market funds are still vulnerable despite an evolving set of regulations, the importance of rich and timely data for regulatory bodies and Congress, normalizing a financial stability mandate across regulatory bodies, the outlook of financial stability over the next decade, and much more.   Transcript for the episode can be found here.   Kate’s Twitter: @ProfKateJudge Kate’s Columbia Law profile: https://www.law.columbia.edu/faculty/kathryn-judge   Anil’s UChicago profile: https://www.chicagobooth.edu/faculty/directory/k/anil-kashyap Anil’s NBER archive: https://www.nber.org/people/anil_kashyap?page=1&perPage=50   Related Links:   Report of the Task Force on Financial Stability: https://www.brookings.edu/research/report-of-the-task-force-on-financial-stability/   *Financial Stability Considerations and Monetary Policy* by Anil K. Kashyap and Caspar Siegert https://www.ijcb.org/journal/ijcb2002_5.htm   *The Impact of Treasury Supply on Financial Sector Lending and Stability* by Arvind Krishnamurthy and Annette Vissing-Jorgensen https://www.sciencedirect.com/science/article/abs/pii/S0304405X15001518   *Reforming the Macroprudential Regulatory Architecture in the US* by Kathryn Judge and Anil Kashyap https://voxeu.org/article/reforming-macroprudential-regulatory-architecture-us   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/9/202156 minutes, 18 seconds
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Larry White on Stablecoins, Money Market Funds, and the History of Free Banking

Larry White is a professor of economics at George Mason University and is a returning guest to the show. He rejoins Macro Musings to talk about stablecoins, the history of free banking, and money market funds reform. Specifically, David and Larry also discuss the critiques levied against stablecoins, their impact on the banking system, and why stablecoins could be considered the new version of money market mutual funds.   Transcript for the episode can be found here.   Larry’s Twitter: @lawrencewhite1 Larry’s GMU profile: https://economics.gmu.edu/people/lwhite11 Larry’s Alt-M profile: https://www.alt-m.org/author/white/   Related Links:   *Should We Fear Stablecoins?* by Larry White https://www.alt-m.org/2021/06/24/should-we-fear-stablecoins/   *Taming Wildcat Stablecoins* by Gary Gorton and Jeffery Zhang https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3888752   *Overview of the Recent Events and Potential Reform Options for Money Market Funds* by the President’s Working Group on Financial Markets https://home.treasury.gov/system/files/136/PWG-MMF-report-final-Dec-2020.pdf   Larry White on India’s Demonetization and Austrian Macroeconomics: https://macromusings.libsyn.com/47-larry-white-on-indias-demonetization-and-austrian-macroeconomics   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/2/202152 minutes, 42 seconds
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Jerusalem Demsas on Problems in the US Housing Market and How to Fix Them

Jerusalem Demsas is a policy reporter for Vox and joins David on Macro Musings to discuss the state of housing in America and its implications for policy. Specifically, Jerusalem and David discuss the current state of the housing market, whether there is a housing bubble, how the housing shortage creates avenues for discrimination, the dynamics of racism in the US housing market, the impact of zoning laws, and much more.   Transcript for the episode can be found here.   Jerusalem’s Twitter: @JerusalemDemsas Jerusalem’s Vox archive: https://www.vox.com/authors/jerusalem-demsas   Related Links:   *Housing Constraints and Spatial Misallocation* by Chang-Tai Hsieh and Enrico Moretti https://www.aeaweb.org/articles?id=10.1257/mac.20170388   *Is There a Housing Bubble?* by Jerusalem Demsas https://www.vox.com/22464801/housing-bubble-market-crash-supply-shortage-great-recession   *Stuck! The Law and Economics of Residential Stagnation* by David Schleicher https://www.yalelawjournal.org/article/stuck-the-law-and-economics-of-residential-stagnation   *The Housing Shortage Makes Housing Discrimination Much Easier* by Jerusalem Demsas https://www.vox.com/2021/5/26/22453293/housing-supply-shortage-discrimination-real-estate-cover-letters   *America's Racist Housing Rules Really Can Be Fixed* by Jerusalem Demsas https://www.vox.com/22252625/america-racist-housing-rules-how-to-fix   *The Fight Over Housing Segregation is Dividing one of America's Most Liberal States* by Jerusalem Demsas https://www.vox.com/22335749/housing-prices-connecticut-segregation-zoning-reform-democrats-adu-parking-minimum   *Why Does it Cost so Much to Build Things in America* by Jerusalem Demsas https://www.vox.com/22534714/rail-roads-infrastructure-costs-america   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/26/202153 minutes, 13 seconds
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Scott Sumner on What Milton Friedman Would Think of Monetary Policy Today

Scott Sumner is the Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center. Scott joins David on Macro Musings to discuss Milton Friedman's views and what he might say about some of the recent developments in monetary policy. Specifically, Scott and David talk about nominal interest rates as indicators of the stance of monetary policy, fiscal austerity as means of reducing excessive aggregate demand, Friedman’s critique of the Phillips curve and wage and price controls, what Friedman might have said about the recent inflation numbers, and much more.   Transcript for the episode can be found here.   Scott’s automated Twitter: @MoneyIllusion Scott’s blog: https://www.themoneyillusion.com/ Scott’s Mercatus profile: https://www.mercatus.org/scholars/scott-sumner   Related Links:   *Friedman's Smashing Success­­* by Scott Sumner https://www.econlib.org/friedmans-smashing-success/   *Inflation is a Nominal Phenomenon* by Scott Sumner https://www.econlib.org/inflation-is-a-nominal-phenomenon/   *The Role of Monetary Policy* (1968) by Milton Friedman https://link.springer.com/chapter/10.1007/978-1-349-24002-9_11   *What Would Milton Friedman Have Thought of Market Monetarism?* by Scott Sumner https://oxford.universitypressscholarship.com/view/10.1093/acprof:oso/9780198704324.001.0001/acprof-9780198704324-chapter-15   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/19/202153 minutes, 5 seconds
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Skanda Amarnath on Maximum Employment, Inflation, and the Fed’s New Framework

Skanda Amarnath is the executive director of Employ America and a former hedge fund economist. He rejoins Macro Musings to talk about the fate of the Phillips Curve, the inflation outlook, the Fed’s new framework, and his vision for a better monetary policy future. David and Skanda also discuss the Fed’s flawed assessment of maximum employment, how to modify the central bank’s Summary of Economic Projections, and the significance of capacity constraints vs labor utilization.   Transcript for the episode can be found here.   Skanda’s Twitter: @IrvingSwisher Skanda’s Employ America archive: https://employamerica.org/author/skandaamarnath/ Skanda’s Medium profile: https://medium.com/@skanda_97974   Related Links:   *Beyond the Phillips Curve: A Dynamic Approach to Communicating Assessments of 'Maximum Employment'* by Skanda Amarnath and Alex Williams https://employamerica.medium.com/beyond-the-phillips-curve-a-dynamic-approach-to-communicating-assessments-of-maximum-employment-c3eff48b2fcf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/12/202151 minutes, 44 seconds
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Agustin Carstens on Central Banking in Emerging Markets, the Distributional Footprint of Monetary Policy, and Central Bank Digital Currency

Agustin Carstens leads the Bank for International Settlements or the BIS in his role as general manager and previously served as the governor of the Bank of Mexico. He also served as the deputy managing director of the International Monetary Fund. Agustin joins David on Macro Musings to discuss the new BIS 2021 annual report. Specifically, David and Agustin discuss the macroeconomic developments of the past year, the distributional footprint of monetary policy, the evolving role of central banking, and the outlook for central bank digital currency (CBDC).   Transcript for the episode can be found here.   Agustin’s BIS profile: https://www.bis.org/author/agust%C3%ADn_carstens.htm   Related Links:   *Annual Economic Report 2021* by the BIS https://www.bis.org/publ/arpdf/ar2021e.htm   U.S. Monetary Policy and the Global Financial Cycle* by Silvia Miranda-Agrippino and Hélène Rey https://academic.oup.com/restud/article/87/6/2754/5834728?login=true   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/5/202150 minutes, 5 seconds
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Jason Furman on Overheating, Inflation, and Fiscal Policy in an Era of Low Interest Rates

Jason Furman is a former chair of the Council of Economic Advisers and is currently a senior fellow at the Peterson Institute for International Economics. Jason is also a professor at Harvard University and he rejoins Macro Musings to talk about overheating, the inflation outlook, and the right way to think about fiscal policy in an era of low interest rates.   Transcript for the episode can be found here.   Jason’s Twitter: @jasonfurman Jason’s Harvard profile: https://www.hks.harvard.edu/faculty/jason-furman Jason’s PIIE profile: https://www.piie.com/experts/senior-research-staff/jason-furman   Related Links:   *A Reconsideration of Fiscal Policy in the Era of Low Interest Rates* by Jason Furman and Larry Summers https://www.hks.harvard.edu/centers/mrcbg/programs/growthpolicy/reconsideration-fiscal-policy-era-low-interest-rates-jason   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/28/202153 minutes, 19 seconds
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Steffen Murau on the Eurozone, International Monetary Architecture, and the Future of the Dollar Zone

Steffen Murau is a political economist at the Global Development Policy Center at Boston University and specializes in international money and finance. He joins Macro Musings to talk about the Eurozone, its role within international monetary architecture, and the future of the dollar zone. They also discuss balance sheet hierarchies, the roles of European banks compared to their American counterparts, and the fiscal ecosystem present within the Eurozone.   Transcript for the episode can be found here.   Steffen’s Twitter: @steffenmurau Steffen’s website: https://steffenmurau.com/ Steffen’s GDPC profile: https://www.bu.edu/gdp/profile/steffen-murau/   Related Links:   *A Macro-Financial Model of the Eurozone Architecture Embedded in the Global Offshore US-Dollar System* by Steffen Murau https://www.bu.edu/gdp/files/2020/07/Murau-Eurozone-architecture.pdf   *The Hierarchy of the Offshore US-Dollar System: On Swap Lines, the FIMA Repo Facility and Special Drawing Rights* by Steffen Murau, Fabian Paper, and Tobias Pforr https://www.bu.edu/gdp/files/2021/02/Steffen-Murau-GEGI-Study-2-Feb-2021.pdf   *The Evolution of the Offshore US-Dollar System: Past, Present, and Four Possible Futures* by Steffen Murau, Joe Rini, and Armin Haas https://www.cambridge.org/core/journals/journal-of-institutional-economics/article/evolution-of-the-offshore-usdollar-system-past-present-and-four-possible-futures/B36ED9082CECE54F3F5B8E8F40D15148   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/21/202153 minutes, 7 seconds
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Daniel Smith and Alexander Salter on *Money and the Rule of Law: Generality and Predictability in Monetary Institutions*

Dan Smith is an associate professor of economics at Middle Tennessee State University and directs the Political Economy Research Institute at MTSU. Alex Salter is an associate professor of economics at Texas Tech University. Dan and Alex join David on a special live episode of Macro Musings to discuss their new book, Money and the Rule of Law: Generality and Predictability in Monetary Institutions. Specifically, they discuss knowledge and incentive problems in setting monetary policy, what is meant by “rule of law,” how to make monetary policy accountable, centralized versus decentralized forms of digital currencies, thoughts on free banking, and much more.   Transcript for the episode can be found here.   Alex’s Twitter: @alexwsalter Alex’s website: https://www.awsalter.com/ Alex’s Free Market Institute profile: https://www.depts.ttu.edu/freemarketinstitute/people/salter.php   Daniel’s Twitter: @smithdanj1 Daniel’s website: http://www.danieljosephsmith.com/about.html Daniel’s MTSU profile: https://www.mtsu.edu/faculty/daniel-j-smith   Related Links:   *Seigniorage in a Cross-Section of Countries* by Reid W. Click https://www.jstor.org/stable/2601207   *Money and the Rule of Law: Generality and Predictability in Monetary Institutions* by Peter J. Boettke, Alexander William Salter, and Daniel J. Smith https://www.cambridge.org/core/books/money-and-the-rule-of-law/C825E982EDE5BD2BE41A99464DC885DB   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/14/202153 minutes, 53 seconds
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David Andolfatto on a Standing Repo Facility, the Future of CBDC, and Plumbing Issues in Monetary Policy

David Andolfatto is a vice president for the St. Louis Federal Reserve Bank and has published widely in the field of monetary economics. David also blogs at MacroMania and is a returning guest to the podcast. He rejoins Macro Musings to talk about his thoughts on macro theory, plumbing issues, central bank digital currency, and more.   Transcript for the episode can be found here.   David’s Twitter: @dandolfa David’s St. Louis Fed profile: https://www.stlouisfed.org/about-us/leadership-governance/bank-officers/executive-bios/david-andolfatto   Related Links:   *Some Thoughts on Central Bank Digital Currency* by David Andolfatto https://www.cato.org/cato-journal/spring/summer-2021/some-thoughts-central-bank-digital-currency   *Minutes of the Federal Open Market Committee: April 27-28, 2021* by the Fed https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20210428.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/7/202154 minutes, 7 seconds
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Mark Carney on *Value(s): Building a Better World for All*

Mark Carney served as the governor of the Bank of Canada from 2008 until 2013, and as the governor of the Bank of England from 2013 to 2020. Mark also was the chairman of the Financial Stability Board from 2011 to 2018. Mark is currently the Vice Chairman and Head of Impact Investing at Brookfield Asset Management, as well as a UN Special Envoy for Climate Action and Finance. Mark joins David on Macro Musings to discuss his new book *Value(s): Building a Better World for All*, as well as his career in central banking. Specifically, they discuss Mark’s experience at the Bank of Canada during the Great Recession, nominal GDP targeting and average inflation targeting as central bank frameworks, the future of central bank digital currencies, dollar dominance and the shadow banking system, the role of central banks and the financial sector in combating climate change, and much more.   Transcript for the episode can be found here.   Mark’s Twitter: @MarkJCarney Mark’s Brookfield profile: https://www.brookfield.com/about-us/leadership/mark-carney   Related Links:   *Value(s): Building A Better World For All* by Mark Carney https://www.penguinrandomhouse.ca/books/669023/values-by-mark-carney/9780771051555   *The Growing Challenges for Monetary Policy in the Current International Monetary and Financial System* by Mark Carney (speech given at Jackson Hole Symposium 2019) https://www.bankofengland.co.uk/-/media/boe/files/speech/2019/the-growing-challenges-for-monetary-policy-speech-by-mark-carney.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/31/202154 minutes, 53 seconds
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George Selgin on Inflation, Fintechs, and Broadening Access to Fed Master Accounts

George Selgin is the director of the Cato Institute’s Center for Monetary and Financial Alternatives and is a returning guest to the podcast. He rejoins Macro Musings to talk about the Fed’s recent calls for comments on opening up Fed accounts to fintechs and other non-bank financial firms. George and David also discuss monetary plumbing issues, the state of fiscal QE, and more.   Transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato Institute profile: https://www.cato.org/people/george-selgin   Related Links:   *Keeping Fintech’s Promise: A Modest Proposal* by George Selgin https://thehill.com/opinion/finance/552614-keeping-fintechs-promise-a-modest-proposal   *Central Bank Digital Currency as a Potential Source of Financial Instability* by George Selgin https://www.cato.org/cato-journal/spring/summer-2021/central-bank-digital-currency-potential-source-financial-instability   *Federal Reserve Board Invites Public Comment on Proposed Guidelines to Evaluate Requests for Accounts and Payment Services at Federal Reserve Banks* by the Fed https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210505a.htm   *Aaron Klein on Real-time Payments and Financial Regulation* https://macromusings.libsyn.com/aaron-klein-on-real-time-payments-and-financial-regulation   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/24/202155 minutes, 44 seconds
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Adam Posen on *The Price of Nostalgia: America's Self-Defeating Economic Retreat*

Adam Posen is the President of the Peterson Institute for International Economics. Previously, Adam was on the monetary policy committee of the Bank of England. He has also worked at the New York Fed and has advised many central banks and governments. Adam is also a returning guest to the podcast and re-joins Macro Musings to discuss his new article, “The Price of Nostalgia: America's Self-Defeating Economic Retreat.” Specifically, David and Adam discuss the Fed’s new framework, secular stagnation, the economic impact of demographic changes, the China shock, and how the new political consensus on trade, growth, and the American middle class is short-sighted and self-defeating.   Transcript for the episode can be found here.   Adam’s Twitter: @AdamPosen Adam’s PIIE profile: https://www.piie.com/experts/senior-research-staff/adam-s-posen   Related Links:   *The Price of Nostalgia: America's Self-Defeating Economic Retreat* by Adam Posen https://www.foreignaffairs.com/articles/united-states/2021-04-20/america-price-nostalgia   *Hysteresis and the Business Cycle* by Valerie Cerra, Antonio Fatás, and Sweta Saxena https://faculty.insead.edu/fatas/hysteresis.pdf   *The China Syndrome: Local Labor Market Effects of Import Competition in the United States* by David H. Autor, David Dorn, and Gordon H. Hanson https://www.aeaweb.org/articles?id=10.1257/aer.103.6.2121   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/17/202155 minutes, 57 seconds
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Judge Glock on The Origins of the US Mortgage Market and Its Evolution to the Present Day

Judge Glock is an economic historian, a scholar at the Cicero Institute, and a returning guest to the podcast. Judge rejoins Macro Musings to talk about the origins of the US mortgage market as detailed in his new book, *The Dead Pledge: The Origins of the Mortgage Market and Federal Bailouts, 1913-1939*. David and Judge also discuss the emergence and evolution of the national US mortgage market, the price parity movement, the history of federal land banks, and more.   Transcript for the episode can be found here.   Judge’s Twitter: @judgeglock Judge’s blog: https://judgeglock.medium.com/    Related Links:   *The Dead Pledge: The Origins of the Mortgage Market and Federal Bailouts, 1913-1939* by Judge Glock https://cup.columbia.edu/book/the-dead-pledge/9780231192538   *The “Riefler-Keynes” Doctrine and Federal Reserve Policy in the Great Depression* by Judge Glock https://read.dukeupress.edu/hope/article-abstract/51/2/297/137129/The-Riefler-Keynes-Doctrine-and-Federal-Reserve?redirectedFrom=fulltext   *Housing Finance at a Glance* by the Urban Institute https://www.urban.org/policy-centers/housing-finance-policy-center/projects/housing-finance-glance-monthly-chartbooks   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/10/20211 hour, 1 minute, 2 seconds
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Christina Parajon Skinner on Central Bank Activism

Christina Parajon Skinner is a legal scholar at the University of Pennsylvania, and formerly was a legal counsel to the Bank of England. Christina joins David on Macro Musings to discuss her work on central bank activism. Specifically, David and Christina discuss comparisons between the Fed and the Bank of England, tensions between central bank independence and executive override, contemporary examples of central bank activism, and much more.   Transcript for the episode can be found here.   Christina’s Twitter: @CParaSkinner Christina’s Wharton profile: https://lgst.wharton.upenn.edu/profile/skinnerc/   Related Links:   *Executive Override of Central Banks: A Comparison of the Legal Frameworks in the United States and the United Kingdom* by Michael Salib & Christina Parajon Skinner https://www.law.georgetown.edu/georgetown-law-journal/in-print/volume-108-issue-4-april-2020/executive-override-of-central-banks-a-comparison-of-the-legal-frameworks-in-the-united-states-and-the-united-kingdom/    *Menace of Fiscal QE* by George Selgin https://www.cato.org/books/menace-fiscal-qe   *Central Bank Activism* by Christina Parajon Skinner https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3817123   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/3/202155 minutes, 33 seconds
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Robert McCauley on the Global Domain of the Dollar and Threats to Its Dominance

Robert McCauley is a Senior Fellow at the Global Policy Center at Boston University and a Senior Research Associate of the Global History of Capitalism project at the Oxford Center for Global History. Robert also worked at the Bank for International Settlements for 25 years and the New York Federal Reserve Bank for 14 years, and he joins Macro Musings to discuss questions surrounding the global domain of the dollar. Specifically, Robert and David talk about how the US currency rose to prominence internationally in the 1950s, the size and influence of the global dollar zone, dilemmas imposed by dollar demand worldwide, and more.   Transcript for the episode can be found here.   Robert’s Boston University profile: https://www.bu.edu/gdp/profile/robert-mccauley/ Robert’s BIS archive: https://www.bis.org/author/robert_n_mccauley.htm   Related Links:   *The Global Domain of the Dollar: Eight Questions* by Robert McCauley https://www.bu.edu/gdp/files/2021/02/McCauley2021_Article_TheGlobalDomainOfTheDollarEigh.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/26/202159 minutes, 20 seconds
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Antonio Fatás on Hysteresis and the Business Cycle

Antonio Fatás is a professor of economics at INSEAD, an international business school with campuses in Singapore, France, and Abu Dhabi. Antonio joins David on Macro Musings to talk about hysteresis and the business cycle. Specifically, David and Antonio discuss the history of the academic literature on business cycle and trend, the impact of the Kydland and Prescott model, and how endogenous growth models play into hysteresis.   Support Macro Musings and get a free NGDP targeting mug: https://donate.mercatus.org/mug/?utm_source=shownotes&utm_medium=hyperlink&utm_campaign=mug   Transcript for the episode can be found here.   Antonio’s INSEAD profile: https://faculty.insead.edu/fatas/ Antonio’s Twitter: @AntonioFatas   Related Links:   *Hysteresis and the Business Cycle* by Valerie Cerra, Antonio Fatás, and Sweta Saxena https://faculty.insead.edu/fatas/hysteresis.pdf   *Time to build and aggregate fluctuations* by F.E. Kydland and E.C. Prescott https://www.jstor.org/stable/1913386?seq=1   *The Dynamic Effects of Aggregate Demand and Supply Disturbances* by Olivier Jean Blanchard and Danny Quah https://www.jstor.org/stable/1827924?origin=JSTOR-pdf&seq=1   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/19/202156 minutes, 27 seconds
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Matteo Maggiori on the Global Capital Allocation Project, Exorbitant Privilege, and Dollar Runs

Matteo Maggiori is an associate professor of economics at Stanford University and joins David on Macro Musings to talk about global capital flows, reserve currencies, and the international monetary system. Specifically, David and Matteo also discuss the details of the Global Capital Allocation Project, the US and its status as banker to the world, the possibility we could see a major run on the dollar in the near future, and more.   Support Macro Musings and get a free mug: https://donate.mercatus.org/mug/?utm_source=shownotes&utm_medium=hyperlink&utm_campaign=mug   Transcript for the episode can be found here.   Matteo’s Twitter: @m_maggiori Matteo’s website: https://www.matteomaggiori.com/ Matteo’s Stanford profile: https://www.gsb.stanford.edu/faculty-research/faculty/matteo-maggiori   Related Links:   The Global Capital Allocation Project: https://www.globalcapitalallocation.com/   *The Rise of the Dollar and Fall of the Euro as International Currencies* by Matteo Maggiori, Brent Neiman, and Jesse Schreger https://scholar.harvard.edu/files/maggiori/files/mns_pandp.pdf   *A Model of the International Monetary System* by Emmanuel Farhi and Matteo Maggiori https://scholar.harvard.edu/files/farhi/files/ims.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/12/202158 minutes, 34 seconds
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Scott Skyrm on the Dynamics of the Repo Market in 2021

Scott Skyrm is the Executive Vice President in Fixed Income and Repo at Curvature Securities. Scott joins David on Macro Musings to discuss REPO markets, where they have been and where they are going. Specifically, Scott and David discuss the role of broker-dealers like Curvature Securities in the repo market, how repo markets are tied to treasury markets and government deficit financing, why repo rates have recently entered negative territory, potential reforms to the repo market, and much more.   Support Macro Musings and get a free mug: https://donate.mercatus.org/mug/?utm_source=shownotes&utm_medium=hyperlink&utm_campaign=mug   Transcript for the episode can be found here.   Scott’s Twitter: @ScottSkyrm Scott’s Bio: http://curvaturesecurities.com/our-team/#1540493883550-e8ec7543-62d3   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/5/202147 minutes, 32 seconds
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Ed Nelson on Milton Friedman’s Legacy, the Quantity Theory of Money, and His Vision for a Money Supply Growth Rule

Ed Nelson is a Senior Advisor in the Monetary Affairs Division of the Board of Governors of the Federal Reserve System. Ed has also previously been a professor and has worked at the St. Louis Federal Reserve Bank, as well as the Bank of England. Returning to the podcast, Ed re-joins Macro Musings to talk about his new book, *Milton Friedman and the Economic Debate in the United States: 1932-1972*. Ed and David specifically discuss the life and work of Milton Friedman, as they explore his journey into monetarism, his contributions to the quantity theory of money, how he envisioned a money supply growth rule, and more.   Transcript for the episode can be found here.   Ed’s website: https://sites.google.com/site/edwardnelsonresearch/ Ed’s Fed profile: https://www.federalreserve.gov/econres/edward-nelson.htm   Related Links:   *Milton Friedman and the Economic Debate in the United States, 1932-1972: Volume 1* by Edward Nelson https://press.uchicago.edu/ucp/books/book/chicago/M/bo47674126.html   *Milton Friedman and the Economic Debate in the United States, 1932-1972: Volume 2* by Edward Nelson https://press.uchicago.edu/ucp/books/book/chicago/M/bo47674466.html   *A Monetary and Fiscal Framework for Economic Stability* by Milton Friedman https://www.jstor.org/stable/1810624?seq=1   *Some Unpleasant Monetarist Arithmetic* by Neil Wallace and Thomas Sargent https://www.minneapolisfed.org/research/quarterly-review/some-unpleasant-monetarist-arithmetic   *Money Mischief: Episodes in Monetary History* by Milton Friedman https://www.journals.uchicago.edu/doi/10.1086/261872   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/29/202157 minutes, 14 seconds
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Dan Awrey on *Unbundling Banking, Payments and Money*

Dan Awrey is a professor of law at Cornell Law School, a financial markets regulation scholar, and the editor of the Journal of Financial Regulation. Dan joins David on Macro Musings to discuss how to promote greater financial innovation, financial inclusion, and alleviate the “too big to fail” problem by safely unbundling banking, money, and payments in our financial system. Dan and David also go on to discuss tensions in the global shadow banking system, the history of how banks evolved to play such a central role in our financial system, how the law has reinforced this bundling of the banks’ roles, and much more.   Transcript of the episode can be found here.   Dan’s Twitter: @DanAwrey Dan’s Cornell Law Profile: https://www.law.columbia.edu/faculty/daniel-awrey   Related Links:   *Unbundling Banking, Payments and Money* by Dan Awrey https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3776739   *Brother, Can You Spare a Dollar? Designing an Effective Framework for Foreign Currency Liquidity Assistance* by Dan Awrey https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2955763   *The Money Problem* by Morgan Ricks https://press.uchicago.edu/ucp/books/book/chicago/M/bo22438821.html   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/22/202157 minutes, 42 seconds
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Chris Russo on Existing Fed-Treasury Tensions and Potential Solutions for Fixing Them

Chris Russo is a Monetary Policy Program Research Fellow at the Mercatus Center at George Mason University and has previously worked at the New York Federal Reserve Bank. He joins Macro Musings to talk about the work he is doing on tensions between the Fed and the Treasury’s management of their respective balance sheets. Specifically, David and Chris discuss what these tensions are and what fixes can be implemented to ameliorate the existing plumbing issues.   Transcript for the episode can be found here.   Chris’s Mercatus profile: https://www.mercatus.org/scholars/christopher-russo Chris’s Github site: https://christopher-russo.github.io/about/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/15/202156 minutes, 29 seconds
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Saule Omarova on Emergency Fiscal Facilities and the Missing Architecture of Government Finance

Saule Omarova is a professor of law and the director of the Jack Clarke Program on the Law and Regulation of Financial Institutions and Markets at Cornell University. Saule joins Macro Musings to talk about the prospects of an emergency fiscal facility, as well as a broader vision for a National Investment Authority. Specifically, Saule and David discuss the need for a third public finance agency, what the mandate of such an authority would be, and how the agency would be structured and held accountable. Saule also answers common objections to her vision such as the potential institutional redundancies, as well as how to prevent cronyism and excessive politicization.   Transcript for the episode can be found here.   Saule’s Twitter: @STOmarova Saule’s Cornell profile: https://www.lawschool.cornell.edu/faculty/bio_saule_omarova.cfm   Related Links:   *Data For Progress: A National Investment Authority* https://www.dataforprogress.org/a-national-investment-authority   *Why We Need a National Investment Authority* by Saule Omarova https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3566462   *The People’s Ledger: How to Democratize Money and Finance the Economy* by Saule Omarova https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3715735   *What Kind of Finance Should There Be?* by Saule Omarova https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3544103   *White Paper: A National Investment Authority* by Saule Omarova and Robert C. Hockett https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3125533   *The Money Problem* by Morgan Ricks https://www.amazon.com/Money-Problem-Rethinking-Financial-Regulation/dp/022633032X   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/8/202158 minutes, 17 seconds
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Pat Parkinson on the 2020 Treasury Market Meltdown and How to Avoid a Potential Sequel

Pat Parkinson is a senior fellow at the Bank Policy Institute and a 30-year veteran of the Federal Reserve system, where he served as director of the Division of Banking Supervision and Regulation. During that time, he was also a member of the Basel Committee on Banking and advised Alan Greenspan, Ben Bernanke, and Tim Geithner on financial market issues. Pat joins Macro Musings to discuss the treasury market meltdown in March 2020, as well as what we can do moving forward to avoid this issue from happening again. Specifically, David and Pat outline the implementation of a standing repo facility, changes to the supplemental leverage ratio, expanded central clearing, and increased data collection as possible solutions to this problem.     Transcript for the episode can be found here.   Pat’s BPI profile: https://bpi.com/people/pat-parkinson/   Related Links:   *Enhancing Liquidity of the U.S. Treasury Market Under Stress* by Nellie Liang and Pat Parkinson https://www.brookings.edu/research/enhancing-liquidity-of-the-u-s-treasury-market-under-stress/   *US Treasuries: The Lessons from March’s Market Meltdown* by Colby Smith and Robin Wigglesworth https://www.ft.com/content/ea6f3104-eeec-466a-a082-76ae78d430fd   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/1/202156 minutes, 38 seconds
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Kathy Bostjancic on Priorities for the Fed in 2021 and Beyond

Kathy Bostjancic is the chief US financial economist at Oxford Economics and joins Macro Musings to discuss the outlook for monetary and fiscal policy in 2021 as well as in financial markets. Specifically, David and Kathy discuss the prospects for Fed policy and personnel under the Biden Administration, immediate concerns facing the Fed as the COVID pandemic continues into 2021, what steps the Fed can take to make their new AIT framework credible, how large scale asset purchases have impacted asset prices and the real economy, and much more.   Transcript for the episode can be found here.   Kathy’s Twitter: @BostjancicKathy Kathy’s Oxford Economics profile: https://www.oxfordeconomics.com/about-us/staff/267824/kathy-bostjancic   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
2/22/202148 minutes, 48 seconds
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Ricardo Reis on Central Bank Swap Lines, Fiscal Sustainability, and Outlooks for Inflation

Ricardo Reis is a professor of economics at the London School of Economics and a returning guest to the podcast. Ricardo rejoins Macro Musings to talk about central bank swap lines, the importance of fiscal sustainability, and the outlook for inflation in advanced economies. David and Ricardo also discuss safe asset alternatives, and how to think about inflation, debt, and deficits in a more nuanced way.   Transcript for the episode can be found here.   Ricardo’s Twitter: @R2Rsquared Ricardo’s LSE profile: https://personal.lse.ac.uk/reisr/   Related Links:   *Central Bank Swap Lines* by Saleem Bahaj and Ricardo Reis https://voxeu.org/article/central-bank-swap-lines   *Central Bank Swap Lines During the Covid-19 Pandemic* by Saleem Bahaj and Ricardo Reis https://personal.lse.ac.uk/reisr/papers/20-covicbswaps.pdf   *The Constraint on Public Debt When r https://iepecdg.com.br/wp-content/uploads/2020/12/mpkrg-201112.pdf   *Inflating Away the Public Debt? An Empirical Assessment* by Jens Hilscher, Alon Raviv, and Ricardo Reis https://www.nber.org/system/files/working_papers/w20339/w20339.pdf   *The New Global Financial Safety Net: Struggling for Coherent Governance in a Multipolar System* by Beatrice Weder di Mauro and Jeromin Zettelmeyer https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2946452   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
2/15/20211 hour, 1 minute, 37 seconds
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Robert Kaplan on the Fed’s New Framework, Inflation, and the Post-COVID Economy

Robert Kaplan is the president and CEO of the Federal Reserve Bank of Dallas. Previously, he was a professor and Associate Dean at Harvard Business School, and prior to that was a Vice Chairman of Goldman Sachs. Robert is a returning guest to the podcast, and he rejoins Macro Musings to discuss the Fed's new framework, inflation, interest rates and more. Specifically, David and Robert talk about COVID’s impact on FOMC operations, how demographic trends are impacting productivity, the Fed’s expanding balance sheet, its average inflation targeting framework, and more.   Transcript for the episode can be found here.   Robert’s Twitter: @RobSKaplan Robert’s Dallas Fed profile: https://www.dallasfed.org/en/fed/bios/kaplan.aspx   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
2/8/202141 minutes, 1 second
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Daniel Griswold on US Demographic Decline and the Case for Expanding Immigration

Daniel Griswold is a senior affiliated scholar at the Mercatus Center and a nationally recognized expert on trade and immigration policy. Dan is also a returning guest is to the podcast, and joins Macro Musings to talk about immigration policy and the outlook for trade policy with the new Biden Administration. Specifically, David and Dan discuss the major demographic decline in the US, and how greater levels of immigration and can solve many of America’s economic concerns.    Transcript for the episode can be found here.   Dan’s Twitter: @danielgriswold Dan’s Mercatus profile: https://www.mercatus.org/scholars/daniel-griswold   Related Links:   *More Immigration Needed to Offset COVID-19 and America’s Demographic Decline* by Daniel Griswold https://www.mercatus.org/publications/trade-and-immigration/more-immigration-needed-offset-covid-19-and-america%E2%80%99s-demographic   *Half a Million Fewer Children? The Coming COVID Baby Bust* by Melissa Kearney and Phillip Levine https://www.brookings.edu/research/half-a-million-fewer-children-the-coming-covid-baby-bust/   *World Population Prospects 2019: Highlights* by the Department of Economic and Social Affairs, Population Division at the United Nations https://population.un.org/wpp/Publications/Files/WPP2019_Highlights.pdf   *The Next Hundred Million: America in 2050* by Joel Kotkin https://www.penguinrandomhouse.ca/books/298866/the-next-hundred-million-by-joel-kotkin/9781101195703   *Fertility, Mortality, Migration, and Population Scenarios for 195 Countries and Territories from 2017 to 2100: A Forecasting Analysis for the Global Burden of Disease Study* by Stein Emil Vollset et al. https://www.thelancet.com/article/S0140-6736(20)30677-2/fulltext   *Clashing over Commerce: A History of US Trade Policy* by Douglas Irwin https://press.uchicago.edu/ucp/books/book/chicago/C/bo24475328.html   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
2/1/202149 minutes, 35 seconds
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Sam Bell on Fed Policy, Personnel, and Politics in 2021

Sam Bell is the policy director of Employ America, a think tank dedicated to having the economy run at full employment levels. Sam is also known on FOMC Twitter as an influencer when it comes to nominations for the Board of Governors. Sam returns to Macro Musings to talk about what 2021 likely has in store for the Fed. Specifically, Sam and David discuss Fed Vice Chair Richard Clarida’s vision for temporary price level targeting, the prospects of Jay Powell and Lael Brainard (and others) for the next Fed chair, the significance of Janet Yellen’s treasury secretary appointment, and the political pressures facing the Fed in 2021.   Transcript for the episode can be found here.   Sam’s Twitter: @sam_a_bell About Employ America: https://employamerica.org/about/   Related Links:   *Monetary Policy Strategies for a Low-Rate Environment* by Ben Bernanke, Michael Kiley, and John Roberts https://www.aeaweb.org/articles?id=10.1257/pandp.20191082   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
1/25/202150 minutes, 44 seconds
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Caleb Watney on *Cracks in the Great Stagnation* and How to Boost Economic Growth

Caleb Watney is the director of innovation policy at the Progressive Policy Institute (PPI) and he joins Macro Musings to talk about his recent piece, *Cracks in the Great Stagnation* and the reasons why we should all be techno-optimists. Specifically, David and Caleb discuss greater skilled immigration, further government R&D spending, innovative energy solutions, and more as ways to help repair an economy plagued by secular stagnation.   Transcript for the episode can be found here.   Caleb’s Twitter: @calebwatney Caleb’s PPI profile: https://www.progressivepolicy.org/people/caleb-watney/   Related Links:   *Cracks in the Great Stagnation* Caleb Watney https://www.agglomerations.tech/cracks-in-the-great-stagnation/   *The Egghead Gap* by Caleb Watney https://www.thenewatlantis.com/publications/the-egghead-gap   *Are Ideas Getting Harder to Find?* by Nicholas Bloom, Charles Jones, John Van Reenen, and Michael Webb https://www.aeaweb.org/articles?id=10.1257/aer.20180338   *Is the Rate of Scientific Progress Slowing Down?* by Tyler Cowen and Ben Southwood https://docs.google.com/document/d/1cEBsj18Y4NnVx5Qdu43cKEHMaVBODTTyfHBa8GIRSec/edit   *The Productivity J-Curve: How Intangibles Complement General Purpose Technologies* by Erik Brynjolfsson, Daniel Rock, and Chad Syverson https://www.nber.org/system/files/working_papers/w25148/w25148.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
1/18/202155 minutes, 49 seconds
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Scott Sumner on the Princeton School of Macroeconomics and Overcoming Inflationary Fears

Scott Sumner is the Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center and a returning guest to Macro Musings. He joins the podcast today to talk about his ongoing work on the Princeton School of Macroeconomics as well as his thoughts on monetary policy in 2021. Specifically, David and Scott discuss the economic contributions of various different Princeton economists as well as how the central bank can overcome inflationary fears and establish further institutional credibility.   Transcript for the episode can be found here.   Scott’s automated Twitter: @MoneyIllusion Scott’s blog: https://www.themoneyillusion.com/ Scott’s Mercatus profile: https://www.mercatus.org/scholars/scott-sumner   Related Links:   *It’s Baaack: Japan’s Slump and the Return of the Liquidity Trap* by Paul Krugman, Kathryn Dominguez, and Kenneth Rogoff https://www.brookings.edu/bpea-articles/its-baaack-japans-slump-and-the-return-of-the-liquidity-trap/   *Great Expectations and the End of the Depression* by Gauti Eggertsson https://www.jstor.org/stable/29730131?seq=1   *The Zero Bound on Interest Rates and Optimal Monetary Policy* by Gauti Eggertsson and Michael Woodford https://www.brookings.edu/bpea-articles/the-zero-bound-on-interest-rates-and-optimal-monetary-policy/   *Methods of Policy Accommodation at the Interest-Rate Lower Bound* by Michael Woodford https://kansascityfed.org/publicat/sympos/2012/mw.pdf   *Bernanke’s No-arbitrage Argument Revisited: Can Open Market Operations in Real Assets Eliminate the Liquidity Trap?* By Gauti Eggertsson and Kevin Proulx https://www.nber.org/papers/w22243   *Japanese Monetary Policy: A Case of Self-Induced Paralysis?* by Ben Bernanke https://www.princeton.edu/~pkrugman/bernanke_paralysis.pdf   *Implementing Optimal Policy through Inflation-Forecast Targeting* by Lars Svensson and Michael Woodford https://www.nber.org/papers/w9747   *Escaping from a Liquidity Trap and Deflation: The Foolproof Way and Others* by Lars Svensson https://www.nber.org/papers/w10195   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
1/11/202159 minutes, 3 seconds
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Josh Galper on Dealing with Climate Risk and Its Potential Impact on US Financial Markets

Josh Galper is the managing principal at Finadium, an independent consultancy in capital markets, and is deep in the trenches of the money markets, as well as the financial regulatory space. As a returning guest to the podcast, Josh rejoins Macro Musings to talk about some of the big changes we might see in financial regulation, especially as it relates to climate issues under the new Biden administration. David and Josh also discuss the prospects of negative interest rates in the US, the influence of the Financial Stability Board, and how to deal with Treasury and repo market stress in the future.   Transcript for the episode can be found here.   Josh’s Twitter: @Finadium Josh’s Finadium profile: https://finadium.com/josh-galper-mba/   Related Links:   *Fed Joins Central Bankers Backing Paris Climate Goals* by Martin Arnold https://www.ft.com/content/008a12d2-7736-4db0-af9c-e063a0bcdd7a   *Managing Climate Risk in the U.S. Financial System* by the Climate Market Risk Subcommittee, Mark Risk Advisory Committee of the CFTC https://www.cftc.gov/sites/default/files/2020-09/9-9-20%20Report%20of%20the%20Subcommittee%20on%20Climate-Related%20Market%20Risk%20-%20Managing%20Climate%20Risk%20in%20the%20U.S.%20Financial%20System%20for%20posting.pdf   *Fixing Financial Data to Assess Systemic Risk* by Greg Feldberg https://www.brookings.edu/research/fixing-financial-data-to-assess-systemic-risk/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
1/4/202152 minutes, 30 seconds
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Macro Musings Producer Special – Recapping 2020 and Looking Ahead to the Future

As a tumultuous, virus-stricken 2020 comes to an end, David is joined by Macro Musings producer Marc Dupont to discuss the highlights of the show throughout the past year. Specifically, they talk about the big macroeconomic themes and takeaways from the last 12 months, which guests and topics were most popular among listeners, what 2020 may have in store for monetary policy, and more.   A special thank you to all of the Macro Musings listeners around the globe who continue to tune in to the show week in and week out, especially during these tough and uncertain times. Stay tuned for more exciting content as we turn a new page in 2021.   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth   Marc’s Twitter: @marc_c_dupont   Related Links:   Top 10 Macro Musings Episodes in 2020:   Adam Tooze on Dollar Dominance, the Eurozone, and the Future of Global Finance - https://macromusings.libsyn.com/adam-tooze-on-dollar-dominance-the-eurozone-and-the-future-of-global-finance   Jim Tankersley on the State of the Middle Class and How to Boost Economic Growth - https://macromusings.libsyn.com/jim-tankersley-on-the-state-of-the-middle-class-and-how-to-boost-economic-growth   Eric Sims on New Keynesian Modelling and the Future of Macroeconomics in a Low Interest Rate Environment - https://macromusings.libsyn.com/eric-sims-on-new-keynesian-modelling-and-the-future-of-macroeconomics-in-a-low-interest-rate-environment   Paul Schmelzing on the ‘Suprasecular’ Decline of Global Real Interest Rates - https://macromusings.libsyn.com/paul-schmelzing-on-the-suprasecular-decline-of-global-real-interest-rates   Nathan Tankus on Public Finance in the COVID-19 Crisis: A Consolidated Budget Balance View and Its Implications for Policy - https://macromusings.libsyn.com/nathan-tankus-on-public-finance-in-the-covid-19-crisis-a-consolidated-budget-balance-view-and-its-implications-for-policy   Brad Setser on Addressing the Global Dollar Shortage and COVID-19’s Implications for Worldwide Trade Imbalances - https://macromusings.libsyn.com/brad-setser-on-addressing-the-global-dollar-shortage-and-covid-19s-implications-for-worldwide-trade-imbalances   Matthew Klein on Global Trade, Inequality, and International Conflict - https://macromusings.libsyn.com/matthew-klein-on-global-trade-wealth-inequality-and-international-conflict   Jim Bianco on Policy Responses to the Coronavirus: Details, Implications, and Concerns Moving Forward - https://macromusings.libsyn.com/jim-bianco-on-policy-responses-to-the-coronavirus-details-implications-and-concerns-moving-forward   Jon Sindreu on Global Financial Flows and the Balance of Trade - https://macromusings.libsyn.com/jon-sindreu-on-global-financial-flows-and-the-balance-of-trade   Scott Sumner on How Central Banks Should Respond to the Coronavirus Threat - https://macromusings.libsyn.com/scott-sumner-on-how-central-banks-should-respond-to-the-coronavirus-threat
12/28/202041 minutes, 19 seconds
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Jeanna Smialek on the Year-End Review of 2020 Financial Markets, the Fed, and US Monetary Policy

Jeanna Smialek covers the Federal Reserve and the economy for The New York Times, and joins Macro Musings to recap and summarize the highs and lows of US monetary policy during 2020. Specifically, David and Jeanna discuss the recent histories of Federal Reserve rate hikes and the persistence of low inflation, the nascent optimism about the economy at the start of 2020, the Fed’s policy response to COVID, and what lessons the Fed will be taking into the future.   Transcript for the episode can be found here.   Jeanna’s Twitter: @jeannasmialek Jeanna’s New York Times archive: https://www.nytimes.com/by/jeanna-smialek   Related Links:   *Janet Yellen's Lift Off (CMFA Working Paper No. 001)* by George Selgin https://www.alt-m.org/2020/12/04/janet-yellens-lift-off-cmfa-working-paper-no-001/   *Measuring the Natural Rate of Interest: International Trends and Determinants* by Kathryn Holston and Thomas Laubach https://www.frbsf.org/economic-research/files/wp2016-11.pdf   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
12/21/202053 minutes, 58 seconds
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Ethan Ilzetzki on Exchange Rate Volatility, the ECB’s Strategy Review, and the Future of the Euro

Ethan Ilzetzki is an associate professor of economics at the London School of Economics and a research affiliate with the Centre for Economic Policy Research. Ethan is also a returning guest to the show, and he re-joins Macro Musings to talk about the European Central Bank’s big strategy review, the future of the Euro, and whether change is afoot in our international monetary system.   Transcript for the episode can be found here.   Ethan’s Twitter: @ilzetzki Ethan’s website: https://www.ilzetzki.com/   Related Links:   *Why Is the Euro Punching Below Its Weight?* by Ethan Ilzetzki, Carmen Reinhart, and Kenneth Rogoff https://www.nber.org/papers/w26760   *Will the Secular Decline in Exchange Rate and Inflation Volatility Survive COVID-19?* by Ethan Ilzetzki, Carmen Reinhart, and Kenneth Rogoff https://www.brookings.edu/bpea-articles/will-the-secular-decline-in-exchange-rate-and-inflation-volatility-survive-covid-19/   Centre for Macroeconomics Panel of Experts Surveys: https://cfmsurvey.org/surveys   Register for the AEA’s 2021 Virtual Annual Meeting: https://www.aeaweb.org/conference/   *Ethan Ilzetzki on the US Dollar as an Anchor Currency* https://macromusings.libsyn.com/56-ethan-ilzetzki-on-the-us-dollar-as-an-anchor-currency   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
12/14/202052 minutes, 53 seconds
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Governor Benjamin Diokno on BSP Policy and the Philippine Economy

Governor Benjamin Diokno is the current head of the Bangko Sentral ng Pilipinas, or BSP, which is the central bank of the Republic of the Philippines. The Governor joins David on Macro Musings to shed light on the art and science of central banking from an emerging market perspective, as seen through the experience in the Philippines. Specifically, Governor Diokno and David discuss the structure, mandate, and operating system of the BSP, how the BSP has managed to avoid the zero lower bound, the prospects of a Philippine central bank digital currency, and how a flexible exchange rate has helped the BSP hedge against dollar volatility.   Transcript for the episode can be found here.   Gov. Diokno’s Twitter: @GovBenDiokno Gov. Diokno’s World Bank profile: https://live.worldbank.org/experts/benjamin-e-diokno   Related Links:   Bangko Sentral ng Pilipinas website: https://www.bsp.gov.ph/SitePages/Default.aspx   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
12/7/202027 minutes, 37 seconds
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Sam Hammond and Brink Lindsey on *Faster Growth, Fairer Growth: Policies for a High Road, High Performance Economy*

Sam Hammond is the director of poverty and welfare policy at the Niskanen Center and Brink Lindsey is vice president and director of the Open Society Project at the Niskanen Center. Both are returning guests to the podcast, and they join David again on Macro Musings to talk about their new pro-growth report titled, *Faster Growth, Fairer Growth: Policies for a High Road, High Performance Economy.* Specifically, they detail a number of different policies the US government could adopt to achieve faster and fairer economic growth, including social insurance modernization, child allowances, and more.   Transcript for the episode can be found here.   Sam’s Twitter: @hamandcheese Sam’s Niskanen profile: https://www.niskanencenter.org/author/samuel-hammond/   Brink’s Twitter: @lindsey_brink Brink’s Niskanen profile: https://www.niskanencenter.org/author/brink-lindsey/   Related Links:   *Faster Growth, Fairer Growth: Policies for a High Road, High Performance Economy* by Brink Lindsey and Sam Hammond https://www.niskanencenter.org/faster-growth-fairer-growth-policies-for-a-high-road-high-performance-economy/   *Are Ideas Getting Harder to Find?* by Nicholas Bloom, Charles Jones, John Van Reenen, and Michael Webb https://web.stanford.edu/~chadj/IdeaPF.pdf   *How Asia Works* by Joe Studwell https://groveatlantic.com/book/how-asia-works/   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
11/30/202059 minutes, 24 seconds
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Bilal Hafeez on Inflation, Innovation, and Economic Recovery after COVID-19

Bilal Hafeez is the CEO and Founder of Macro Hive and previously worked at JP Morgan, Deutsche Bank and Nomura. Bilal joins Macro Musings to discuss recent economic developments and the outlook for inflation after the COVID-19 crisis. Specifically, Bilal and David discuss the prospects for a K-shaped US recovery, COVID-19’s impact on the Eurozone and the UK, how the launch of the EU’s recovery fund has fared, and how the pandemic has impacted the outlook for the services sector, inflation, and the US dollar.   Transcript for the episode can be found here.   Bilal’s Macro Hive profile: https://macrohive.com/researcher/bilal-hafeez/ Bilal’s website: http://bilalhafeez.com/ Bilal’s Twitter: @bilalhafeez123   Related Links:   *The True Economic Consequences of the COVID Peace* by Bilal Hafeez https://macrohive.com/hive-exclusives/the-true-economic-consequences-of-the-covid-peace   *EU Enjoys ‘Outrageous Demand’ for First Covid-related Bond* by Tommy Stubbington https://www.ft.com/content/e3553b68-22c8-487c-a7c0-7e1c6dc0ec4b   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
11/23/202054 minutes, 11 seconds
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Adam Ozimek on the Past, Present, and Future of Remote Work in the Face of COVID-19

Adam Ozimek is the chief economist for Upwork, a global remote freelancing platform, and a returning guest to the podcast. Adam rejoins Macro Musings to talk about some of the lasting impacts of the pandemic on businesses; specifically its influence on remote work. David and Adam also discuss the results of the payment protection program, why the prime age employment to population ratio should become the most important employment measure, the economic geography of remote work, and more.   Transcript for the episode can be found here.   Adam’s Twitter: @ModeledBehavior Adam’s website: https://adamozimek.com/   Related Links:   *The Future of Remote Work*by Adam Ozimek https://www.upwork.com/press/releases/the-future-of-remote-work   *COVID-19 and Remote Work: An Early Look at US Data* by Erik Byrnjolfsson, John Horton, Adam Ozimek, Daniel Rock, Garima Sharma, and Hong-Yi TuYe https://www.nber.org/papers/w27344   *Where Remote Work Saves Commuters Most* by Adam Ozimek https://www.upwork.com/press/releases/where-remote-work-saves-commuters-most   *When Work Goes Remote* by Adam Ozimek https://www.upwork.com/research/when-work-goes-remote   *How Many Jobs can be Done at Home?* by Jonathan Dingel and Brent Neiman https://bfi.uchicago.edu/wp-content/uploads/BFI_White-Paper_Dingel_Neiman_3.2020.pdf   *How Many U.S. Jobs Might be Offshorable?* by Alan Blinder https://www.princeton.edu/~ceps/workingpapers/142blinder.pdf   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
11/16/202051 minutes, 41 seconds
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Alan Cole on Monetary Policy for a Post-COVID Economy

Alan Cole is a senior economist at the Joint Economic Committee of Congress. Alan joins David on Macro Musings to discuss his work with the JEC and his thoughts on the economy. Specifically, Alan and David discuss the high savings rate during the COVID-19 crisis, the track record of US monetary policy from the 2008 financial crisis to the 2020 COVID-19 crisis, why the Fed’s commitment to average inflation targeting is an incremental step toward level targeting, and suggestions for the Fed moving forward.   Transcript for the episode can be found here.   Alan’s Twitter: @AlanMCole   Related Links:   The JEC’s Social Capital Project: https://www.jec.senate.gov/public/index.cfm/republicans/socialcapitalproject   *Saving and COVID-19* by Alan Cole https://www.jec.senate.gov/public/index.cfm/republicans/analysis?ID=754B52C6-04CD-458B-8755-98D1219398F1   *Stable Monetary Policy to Connect More Americans to Work* by Alan Cole https://www.jec.senate.gov/public/index.cfm/republicans/analysis?ID=051267FC-0147-4E31-BE80-946E0543AF82    *Bullard May Be More Right Than Wrong* by Tim Duy https://blogs.uoregon.edu/timduyfedwatch/2020/09/28/bullard-may-be-more-right-than-wrong/   *The Fed’s Mistake* by Adam Ozimek and Michael Ferlez https://www.economy.com/home/products/samples/2018-11-20-Feds-Mistake.pdf   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
11/9/202050 minutes, 37 seconds
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David French on Political Polarization in America and Its Impact on the 2020 Elections

David French is a senior editor of The Dispatch and has written widely on American politics. David has a new book out on the polarization in the United States titled, *Divided We Fall: America’s Secession Threat and How to Restore our Nation.* He joins Macro Musings for another special presidential election episode to discuss this book as well as what political polarization means for the election, this country, and the economy. Specifically, both Davids talk about the political geography of polarization, the national red state versus blue state dynamics, and how instituting more federalism might be the solution.   Transcript for the episode can be found here.   David French’s Twitter: @DavidAFrench David French’s Dispatch archive: https://thedispatch.com/people/5849328-david-french   Related Links:   *Divided We Fall: America’s Secession Threat and How to Restore our Nation* by David French https://us.macmillan.com/books/9781250201973   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
11/2/202058 minutes, 17 seconds
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Michael Strain on the Differing Economic Policies of Trump vs. Biden

Michael Strain is the Director of Economic Policy Studies at the American Enterprise Institute, and a previous guest of the show. Michael joins Macro Musings for a special presidential election episode to discuss President Trump's economic record and what a Biden presidency might mean for the economy compared to a second term for President Trump. Specifically, David and Michael discuss the presidential candidates’ past records and campaign goals for trade, taxes, regulations, immigration, and more.   Transcript for the episode can be found here.   Michael’s Twitter: @MichaelRStrain Michael’s AEI profile: https://www.aei.org/profile/michael-r-strain/   Related Links:   The Mercatus Center’s RegData databse:  https://www.mercatus.org/publications/regulation/regdata   *The triumph of the Trump tax cuts* by Joshua McCabe https://thehill.com/opinion/finance/522813-the-triumph-of-the-trump-tax-cuts   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
10/29/202038 minutes, 12 seconds
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Matt Yglesias on *One Billion Americans*: New Ideas to Revitalize the American Economy

Matt Yglesias is the co-founder of Vox, a senior correspondent who focuses on politics and economic policy, and a returning guest to the podcast. Matt once again joins Macro Musings to discuss his new book, *One Billion Americans: The Case for Thinking Bigger.* Specifically, David and Matt talk about how to reinvigorate the economy; through enacting better housing and transportation policies, dramatically increasing immigration, reviving America’s forgotten cities, and more. Finally, they also discuss the Fed’s new average inflation targeting regime, and what kind of direction the Fed will take over the new few years.   Transcript for the episode can be found here.   Matt’s Twitter: @mattyglesias Matt’s Vox profile: https://www.vox.com/authors/matthew-yglesias Matt’s podcast: https://www.vox.com/the-weeds   Related Links:   *One Billion Americans: The Case For Thinking Bigger* by Matt Yglesias https://www.penguinrandomhouse.com/books/636499/one-billion-americans-by-matthew-yglesias/   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
10/26/20201 hour, 1 minute, 4 seconds
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Shruti Rajagopalan on the Past, Present, and Future of the Indian Economy

Shruti Rajagopalan is a Senior Research Fellow at the Mercatus Center where she leads the programs Indian Political Economy Research and the Emergent Ventures India. Shruti joins David on Macro Musings to discuss the past, present and future of the Indian economy. Specifically, Shruti and David discuss India’s mid-20th century experiment with socialism, subsequent reforms from 1980 through the 2000s, and how further reforms to manufacturing and to land and labor markets can accelerate its economic development.   Transcript for the episode can be found here.   Shruti’s Twitter: @srajagopalan Shruti’s Mercatus profile: https://www.mercatus.org/scholars/shruti-rajagopalan Shruti’s podcast, *Ideas of India*: https://www.discoursemagazine.com/tag/ideas-of-india-podcast/https://www.mercatus.org/tags/ideas-india   Related Links:   *India Grows at Night* by Gurcharan Das https://www.amazon.com/India-Grows-At-Night-Liberal/dp/0670084700   *In India, Don’t Hate the Matchmaker* by Shruti Rajagopalan https://www.bloomberg.com/opinion/articles/2020-08-02/netflix-s-indian-matchmaking-is-only-too-accurate   *It’s Chiefly Rent Seekers Who Oppose Our Farm Reforms* by Shruti Rajagopalan https://www.livemint.com/opinion/columns/it-s-chiefly-rent-seekers-who-oppose-our-farm-reforms-11601304066126.html   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
10/19/20201 hour, 6 minutes, 41 seconds
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Roberto Perli on Average Inflation Targeting and Improving the Fed’s Framework

Roberto Perli is a partner and the head of global policy at Cornerstone Macro and is formerly a senior staffer at the Federal Reserve Board of Governors. Roberto joins Macro Musings to discuss the Fed’s new average inflation targeting framework and what it means for monetary policy, markets, and the economy going forward. Specifically, David and Roberto also discuss the current vague nature of FOMC forward guidance, the challenges and credibility concerns of AIT, and how to further improve the Fed’s framework in the future.   Transcript for the episode can be found here.   Roberto’s Twitter: @R_Perli Roberto’s Cornerstone Macro profile: https://www.cornerstonemacro.com/people/   Related Links:   FOMC September meeting press release: https://www.federalreserve.gov/newsevents/pressreleases/monetary20200916a.htm   *Temporary Price-level Targeting: An Alternative Framework for Monetary Policy* by Ben Bernanke https://www.brookings.edu/blog/ben-bernanke/2017/10/12/temporary-price-level-targeting-an-alternative-framework-for-monetary-policy/   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
10/12/202052 minutes, 54 seconds
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Megan Greene and Eric Lonergan on Dual Interest Rates and the Prospects of Average Inflation Targeting

Megan Greene is a global economist and Senior Fellow at Harvard University School, and Eric Lonergan is an economist and macro fund manager at M&G Investments. Both Megan and Eric are returning guests of the show, and they re-join Macro Musings to discuss dual interest rates and the potential power it brings to central banks. Specifically, they discuss the current constraints on central banks’ toolkit, how the example of the ECB targeting TLTRO’s illustrates the potential of dual interest rates, why the concern over fiscal versus monetary policy is misunderstood, and whether the Fed’s new average inflation targeting mandate can be successfully implemented.   Transcript for the episode can be found here.   Megan’s Twitter: @economistmeg Megan’s website: https://economistmeg.com/about/ Megan’s Financial Times archive: https://www.ft.com/megan-greene   Eric’s Twitter: @ericlonners Eric’s blog: https://www.philosophyofmoney.net/ Eric’s M&G Investments profile: https://www.mandg.co.uk/investor/fund-managers/eric-lonergan/   Related Links:   *Dual Interest Rates Give Central Banks Limitless Firepower* by Eric Lonergan and Megan Greene https://voxeu.org/article/dual-interest-rates-give-central-banks-limitless-fire-power   *A Misplaced Faith in the Power of Central Banks* by Greg Ip https://www.wsj.com/articles/a-misplaced-faith-in-the-power-of-central-banks-11583256163   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
10/5/202057 minutes, 58 seconds
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Thorvald Grung Moe on the Life of Marriner Eccles and His Lasting Macroeconomic Legacy

Thorvald Grung Moe is a 30 year veteran is of the Norges Bank, the central bank of Norway, and has also worked in the Norwegian Ministry of Finance, the World Bank, and the IMF. Thorvald joins Macro Musings to talk about Marriner Eccles and a paper he has written on him title, *Marriner Eccles in the 1950 Treasury-Federal Reserve Accord: Lessons for Central Bankers.* David and Thorvald specifically discuss Eccles’ views on countercyclical monetary policy and government finance, his role in reforming and centralizing the Fed, and the many other lessons that can be learned from his life, particularly in the realm of macroeconomics.   Transcript for the episode can be found here.   Thorvald’s Twitter: @finstab Thorvald’s Levy Economics Institute profile: http://www.levyinstitute.org/scholars/thorvald-grung-moe   Related Links:   *Marriner S. Eccles and the 1951 Treasury – Federal Reserve Accord: Lessons for Central Bank Independence* by Thorvald Grung Moe http://www.levyinstitute.org/pubs/wp_747.pdf   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
9/28/20201 hour, 2 minutes, 12 seconds
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Carolyn Sissoko on the Collateral Supply Effect and Other Concerns in the Money Market

Carolyn Sissoko is an associate professor of economics at the University of the West of England, and she has written widely on shadow banking, money markets, and the plumbing of the financial system. Carolyn joins Macro Musings to talk about the evolution of money markets over the past few decades, and its implication for both monetary and fiscal policy. Specifically, David and Carolyn discuss the collateral supply effect, the consequences of moving from LIBOR to SOFR, and solutions to other money market concerns.   Transcript for the episode can be found here.   Carolyn’s Twitter: @csissoko Carolyn’s UWE Bristol profile: https://people.uwe.ac.uk/Person/CarolynSissoko   Related Links:   *The Collateral Supply Effect on Central Bank Policy* by Carolyn Sissoko https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3545546   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
9/21/20201 hour, 1 minute, 44 seconds
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Robin Harding on Abenomics and the ‘Japanification’ of Monetary Policy

Robin Harding is the Tokyo Bureau chief for the Financial Times. Until 2015, he was based in Washington D.C., covering the U.S. Federal Reserve, the Treasury, and the IMF for the Financial Times. Robin Macro Musings to talk about the Japanese economy, Abenomics, and the evolution of monetary policy in advanced economies over the past decade. Specifically, Robin and David discuss what the Bank of Japan’s point inflation target has in common with the Fed’s average inflation target, how the Bank of Japan found itself on the frontlines of innovation in monetary policy, and what the legacy of Abenomics portends for the future of monetary policy.   Transcript for the episode can be found here.   Robin’s Twitter: @RobinBHarding Robin’s Financial Times profile: https://www.ft.com/robin-harding   Related Links:   *Six Abenomics Lessons for a World Struggling with ‘Japanification’* by Robin Harding https://www.ft.com/content/9f4b1656-95a2-41e0-9c86-70f5b063796d   *Abe’s Tenure Marked by Trade Successes and Thwarted Ambitions* by Robin Harding https://www.ft.com/content/125378c8-073c-41b6-9aef-42b985c24784   *Leave Public Debt Worries for Another Day* by Robin Harding https://www.ft.com/content/691cb9f4-b53d-4429-bba4-03ca623c0077   *Methods of Policy Accommodation at the Interest-Rate Lower Bound* by Michael Woodford https://www.kansascityfed.org/publicat/sympos/2012/mw.pdf?sm=jh083112-4   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
9/14/202053 minutes, 23 seconds
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George Selgin on Average Inflation Targeting and *The Menace of Fiscal QE*

George Selgin is the director of the Cato Institute’s Center for Monetary and Financial Alternatives and is a returning guest to Macro Musings. He joins again to talk about his views on the Fed’s new framework and his recent book titled, *The Menace of Fiscal QE.* Specifically, David and George discuss the Fed’s quantitative easing evolution, and how the move to a floor system helped pave the way for fiscal QE to become a more popular policy in the present.   Transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato Institute profile: https://www.cato.org/people/george-selgin   Related Links:   *The Menace of Fiscal QE* by George Selgin https://www.cato.org/books/menace-fiscal-qe   *Mission Creep at the Fed* by Greg Ip https://www.wsj.com/articles/mission-creep-at-the-fed-11598461446   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
9/7/20201 hour, 5 minutes, 9 seconds
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BONUS: Employ America’s Webcast Panel on the Federal Reserve’s Updated Framework and Its Implications for Monetary Policy

Macro Musings is back with another bonus episode, as Sam Bell and Skanda Amarnath (Employ America) are joined by Julia Coronado (Macro Policy Perspectives) and David Beckworth (Macro Musings) to talk through the announcement of the Fed’s framework transition towards average inflation targeting. Specifically, this panel of guests discuss the implications of moving to an average inflation targeting regime, whether the shift may cause credibility problems for the central bank, how to continue to improve the Fed’s toolkit, and more.   Special thanks to the Employ America team for allowing us to use their webcast audio for this special Macro Musings bonus content.   Transcript for the episode can be found here.   Employ America’s Twitter: @employamerica Employ America’s website: https://employamerica.org/ Sam Bell’s Twitter: @sam_a_bell Skanda Amarnath’s Twitter: @IrvingSwisher   Julia’s Twitter: @jc_econ Julia’s Macro Policy Perspectives profile: https://www.macropolicyperspectives.com/team   Related Links:   *A New Way to Manage Inflation* by David Beckworth https://www.mercatus.org/bridge/commentary/new-way-manage-inflation   *By Doubling Down On Inflation Targeting, the Fed Is At Risk of Forgetting Lessons from 2008 & 2011* by Skanda Amarnath https://medium.com/@skanda_97974/by-doubling-down-on-inflation-targeting-the-fed-is-at-risk-of-forgetting-lessons-from-2008-2011-f877f78acba2   *Securing Macroeconomic and Monetary Stability with a Federal Reserve–Backed Digital Currency* by Julia Coronado and Simon Potter https://www.piie.com/system/files/documents/pb20-4.pdf   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
9/2/202058 minutes, 40 seconds
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Scott Lincicome on the China Shock, Trade Policy, and US Labor Markets

Scott Lincicome is a senior fellow in Economic Studies at Cato Institute where he writes on international and domestic economic issues, including international trade, industrial policy and manufacturing and global supply chains. Scott joins David on Macro Musings to discuss what we've learned so far about the so-called China shock and where we are today in the trade war. Specifically, David and Scott discuss the historical rise of Chinese exports, its impact on US labor markets, how certain policies make it harder for US workers to adjust, and whether the Trump administration marks a genuine regime shift in international trade.   Transcript for the episode can be found here.   Scott’s Twitter: @scottlincicome Scott’s Cato Institute profile: https://www.cato.org/people/scott-lincicome   Related Links:   *Testing the ‘China Shock’: Was Normalizing Trade with China a Mistake?”*by Scott Lincicome https://www.cato.org/publications/policy-analysis/testing-china-shock-was-normalizing-trade-china-mistake#:~:text=However%2C%20champions%20of%20the%20emerging,with%20China%20for%20particular%20scorn.&text=It%20finds%20that%20PNTR%20and,that%20PNTR%20critics%20now%20repeat.   *Clashing over Commerce* by Douglas Irwin https://press.uchicago.edu/ucp/books/book/chicago/C/bo24475328.html   *Audaciously Hopeful: How President Obama Can Help Restore the Pro‐​Trade Consensus* by Dan Ikenson and Scott Lincicome https://www.cato.org/publications/trade-policy-analysis/audaciously-hopeful-how-president-obama-can-help-restore-protrade-consensus   *The 'China Shock', Exports and U.S. Employment: A Global Input-Output Analysis* by Robert Feenstra and Akira Sasahara https://www.nber.org/papers/w24022   *Executive Incentives, Import Restrictions, and Competition* by Brian Blank https://www.mercatus.org/publications/trade-and-immigration/executive-incentives-import-restrictions-and-competition   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
8/31/20201 hour, 1 minute, 35 seconds
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Jim Tankersley on the State of the Middle Class and How to Boost Economic Growth

Jim Tankersley is a tax and economics reporter for the New York Times and has written a new book on the middle class titled, *The Riches of This Land: The Untold, True Story of the American Middle Class.* Jim joins Macro Musings to talk about this book, and the state of the middle class in the US. David and Jim also discuss the history and golden era of the middle class as well as the steps policymakers can take to ensure we return to a path of robust economic growth.   Transcript for the episode can be found here.   Jim’s Twitter: @jimtankersley Jim’s New York Times archive: https://www.nytimes.com/by/jim-tankersley   Related Links:   *The Riches of This Land: The Untold, True Story of the American Middle Class* by Jim Tankersley https://www.publicaffairsbooks.com/titles/jim-tankersley/the-riches-of-this-land/9781541767836/   *The Allocation of Talent and U.S. Economic Growth* by Chang-Tai Hsieh, Erik Hurst, Charles Jones, and Peter Klenow https://www.nber.org/papers/w18693   *Populism in Place: The Economic Geography of the Globalization Backlash* by J. Lawrence Broz, Jeffry Freiden, and Stephen Weymouth https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3501263   *Testing the ‘China Shock’: Was Normalizing Trade with China a Mistake?* by Scott Lincicome https://www.cato.org/publications/policy-analysis/testing-china-shock-was-normalizing-trade-china-mistake   *The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade* by David Autor, David Dorn, and Gordon Hanson https://economics.mit.edu/files/12751   *The Complacent Class: The Self-Defeating Quest for the American Dream* by Tyler Cowen https://us.macmillan.com/books/9781250108708   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
8/24/20201 hour, 4 minutes, 34 seconds
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Vincent Grossmann-Wirth on the ECB in a Post-COVID Economy

Vincent Grossmann-Wirth is the Deputy Head of Monetary Policy Implementation Division at the Banque de France. Vincent joins Macro Musings to discuss the European Central Bank’s response to the COVID-19 crisis and what may lie ahead for the central bank. Specifically, Vincent and David discuss how the ECB’s structure and operating system compares to the US Federal Reserve System, the various dimensions of the ECB’s response to COVID-19, and what the ECB’s review of its operating framework portends for the future of monetary policy.   Transcript for the episode can be found here.   Vincent’s Twitter: @VinceGW Vincent’s Banque de France profile: https://www.banque-france.fr/en/economics/economists-and-researchers/vincent-grossmann-wirth   Related Links:   *Monetary policy measures taken by the Eurosystem in response to COVID-19* by Vincent Grossmann-Wirth https://blocnotesdeleco.banque-france.fr/en/blog-entry/monetary-policy-measures-taken-eurosystem-response-covid-19   *What Monetary Policy Operational Frameworks in the New Financial Environment? A Comparison of the US Fed and the Eurosystem Perspectives, 2007–2019* by Vincent Grossmann-Wirth https://ideas.repec.org/a/mes/ijpoec/v48y2019i4p336-352.html   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
8/17/202059 minutes, 42 seconds
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David Schleicher on the Municipal Trilemma and its Implications for the Current Crisis

David Schleicher is a professor at Yale Law School, and as a returning guest to Macro Musings, he joins to talk about the historical role that the federal government has played in responding to state and local budget crises, including the municipal trllemma it faces. This trilemma says the federal government can only avoid two of the three following harms: (1) moral hazard for state budgets; (2) worsening recessions; (3) reducing future state and local infrastructure investment. Specifically, they discuss this trilemma as well as its implications for the COVID-19 crisis.   Transcript for the episode can be found here.   David’s Twitter: @ProfSchleich David’s Yale profile: https://law.yale.edu/david-n-schleicher   Related Links:   *Stuck! The Law and Economics of Residential Stagnation* by David Schleicher https://www.yalelawjournal.org/article/stuck-the-law-and-economics-of-residential-stagnation   *Hands On! Part I: The Trilemma Facing the Federal Government During State and Local Budget Crises* by David Schleicher https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3649278   *David Schleicher on Local and State Regulation and Declining Mobility* by Macro Musings https://macromusings.libsyn.com/58-david-schleicher-on-local-and-state-regulation-and-declining-mobility   *The Future of Remote Work* by Adam Ozimek https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3638597   *States Continue to Face Large Shortfalls Due to COVID-19 Effects* by Elizabeth McNichol and Michael Leachman https://www.cbpp.org/research/state-budget-and-tax/states-continue-to-face-large-shortfalls-due-to-covid-19-effects   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
8/10/20201 hour, 4 minutes, 39 seconds
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Jon Sindreu on Global Financial Flows and the Balance of Trade

Jon Sindreu is a reporter for the Wall Street Journal where he covers financial markets and the global transportation industry for the Heard on the Street column. Jon joins David on Macro Musings to discuss the role of global financial flows in driving global trade patterns. Specifically, Jon and David discuss the Bernanke view, loanable funds view, and money view of global financial system, as well as the implications for policy.   Transcript for the episode can be found here.   Jon’s Twitter: @jonsindreu Jon’s Wall Street Journal profile: https://www.wsj.com/news/author/jon-sindreu?mod=rsswn   Related Links:   *Trade Wars Are Class Wars* by Matthew Klein and Michael Pettis https://yalebooks.yale.edu/book/9780300244175/trade-wars-are-class-wars   *Wages of Destruction* by Adam Tooze https://www.penguinrandomhouse.com/books/295490/the-wages-of-destruction-by-adam-tooze/   *Capital Flows, Asset Prices, and the Real Economy: A "China Shock" in the U.S. Real Estate Market* by Zhimin Li, Leslie Sheng Shen, and Calvin Zhang https://www.federalreserve.gov/econres/ifdp/capital-flows-asset-prices-and-the-real-economy-a-china-shock-in-the-us-real-estate-market.htm   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/
8/3/20201 hour, 3 minutes, 12 seconds
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David Beckworth on Nominal GDP Targeting in the Wake of the COVID-19 Crisis

In this special Macro Musings episode, David is back in the spotlight, as he is interviewed by Claudia Sahm, director of macroeconomic policy at the Washington Center for Equitable Growth, as a guest on her *Stay-at-Home Macro Podcast*. David and Claudia discuss nominal GDP targeting at length, as they dive into what it is, why it’s important, and how it could be implemented in the wake of COVID-19. They also talk about the communication problems related to introducing NGDP targeting as well as David’s proposal for reforming the Fed’s current policies.   Special thank you to Claudia for letting us air this episode as a part of the Macro Musings catalog!   Transcript for the episode can be found here.   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/ David’s Mercatus profile: https://www.mercatus.org/scholars/david-beckworth   Claudia’s Twitter: @Claudia_Sahm Claudia’s Equitable Growth profile: https://equitablegrowth.org/people/claudia-sahm/   Related Links:   Link to the original podcast: https://www.youtube.com/watch?v=1rHBQ-o8vDA Homepage for Claudia’s podcast: http://macromomblog.com/sahmpodcast/   *Facts, Fears, and Functionality of NGDP Level Targeting* by David Beckworth https://www.mercatus.org/publications/monetary-policy/facts-fears-and-functionality-ngdp-level-targeting   *Measuring Monetary Policy: the NGDP Gap* by David Beckworth https://www.mercatus.org/publications/monetary-policy/measuring-monetary-policy-ngdp-gap   *COVID-19 Pandemic, Direct Cash Transfers, and the Federal Reserve* by David Beckworth https://www.mercatus.org/publications/covid-19-policy-brief-series/covid-19-pandemic-direct-cash-transfers-and-federal   *NGDP Targeting and the Public* by Carola Binder https://www.cato.org/cato-journal/spring/summer-2020/ngdp-targeting-public
7/27/202044 minutes, 33 seconds
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Bill Nelson on the Fed’s Policy Tools in the Post-COVID Economy

Bill Nelson is a Chief Economist and Executive Vice President at the Bank Policy Institute, and formerly a Deputy Director of the Division of Monetary Affairs at the Federal Reserve Board, where his responsibilities included monetary policy analysis, discount window analysis, and financial institution supervision. Bill also worked closely with the Bank for International Settlements on liquidity regulations. Bill is a previous guest of Macro Musings, and he returns to the podcast to discuss the Fed’s increasing role in credit policy, the prospects for yield curve control and negative interest rates, and why makeup policy would be uniquely suited to the challenges presently facing the economy.   Transcript for the episode can be found here.   Bill’s SIFMA profile: https://www.sifma.org/people/bill-nelson/ Bill’s BPI archive: https://bpi.com/tag/bill-nelson/ Bill’s American Banker archive: https://www.americanbanker.com/author/william-nelson-ab3618   Related Links:   *Live Live Jay Powell, the New Monarch of the Bond Market* by Robin Wigglesworth https://www.ft.com/content/5db9d0f1-3742-49f0-a6cd-16c471875b5e   *Federal Reserve’s “Strategies for Targeting Interest Rates Out the Yield Curve”* prepared by David Bowman, Christopher Erceg, and Mike Leahy, with contributions from William English, Edward Nelson, David Reifschneider, Nathan Sheets, and David Wilcox of Board staff and Brian Sack, Spence Hilton, Allan Malz, Frank Keane, Matt Raskin, Julie Remache, Josh Frost, Nate Wuerffel, Angela O’Connor and Richard Dzina of FRBNY staff https://www.federalreserve.gov/monetarypolicy/files/FOMC20101013memo08.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/20/202059 minutes, 18 seconds
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Jens Van’t Klooster on ECB Bond Purchasing and the Myth of Central Bank Neutrality

Jens Van’t Klooster is a postdoctoral fellow at KU Leuven and is also a member of the research group, A New Normative Framework for Financial Debt at the University of Amsterdam. Jens has recently coauthored an article titled *The Myth of Market Neutrality: A Comparative Study of the European Central Bank’s and Swiss National Bank’s Corporate Security Purchases.* He joins Macro Musings to talk about this article and some of his other work on central bank purchases and what it may mean for the Fed’s purchase of corporate bonds.   Transcript for the episode can be found here.   Jens’s Twitter: @jvklooster Jens’s website: https://jensvantklooster.com/   Related Links:   *The Myth of Market Neutrality: A Comparative Study of the European Central Bank’s and Swiss National Bank’s Corporate Security Purchases* by Jens Van’t Klooster and Clement Fontan https://www.tandfonline.com/doi/full/10.1080/13563467.2019.1657077   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/13/20201 hour, 9 seconds
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Matthew Klein on Global Trade, Inequality, and International Conflict

Matthew Klein is an economics commentator at Barron’s and is the author of a new book with Michael Pettis titled, *Trade Wars are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace.* Matthew is a returning guest to Macro Musings and he joins once again to talk about his book and the domestic roots of international trade conflicts – in the past as well as today. Specifically, David and Matthew also discuss the history of how industrialized strategies, in countries such as China, have set the stage for trade conflicts in the present day.   Transcript for the episode can be found here.   Matthew’s Twitter: @M_C_Klein Matthew’s Barron’s profile: https://www.barrons.com/authors/8566   Related Links:   *Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace* by Matthew Klein and Michael Pettis https://yalebooks.yale.edu/book/9780300244175/trade-wars-are-class-wars   *The Great Rebalancing: Trade, Conflict, and the Perilous Road Ahead for the World Economy* by Michael Pettis https://press.princeton.edu/books/hardcover/9780691158686/the-great-rebalancing   *The Man Who Knew: The Life and Times of Alan Greenspan* by Sebastian Mallaby https://www.cfr.org/book/man-who-knew   *Imperialism: A Study* by John Hobson https://oll.libertyfund.org/titles/hobson-imperialism-a-study   *Communist China’s Capitalism: The Highest Stage of Capitalist Imperialism* by Kenneth Austin https://www.worldeconomics.com/Journal/ViewArticle.aspx?AID=455   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/6/20201 hour, 4 minutes, 8 seconds
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Stephen Kirchner on Australian Monetary Policy in the Wake of the Great Recession

Stephen Kirchner is a program director for trade and investment at the United States Center at the University of Sydney, and he was written widely on financial markets and economy policy in Australia. Stephen joins Macro Musings to talk about the journey of monetary policy in Australia that has transpired throughout the last few decades. Specifically, David and Stephen discuss the structure of the Reserve Bank of the Australia, the history of its inflation target, how Australia was able to avoid the worst of the Great Recession, and the actions they have taken to in response to the COVID crisis.   Transcript for the episode can be found here.   Stephen’s Twitter: @insteconomics Stephen’s US Studies Center profile: https://www.ussc.edu.au/people/stephen-kirchner Stephen’s Substack page: https://stephenkirchner.substack.com/   Related Links:   *Money Too Tight to Mention: The Reserve Bank of Australia’s Financial Stability Mandate and Low Inflation* by Stephen Kirchner http://www.institutional-economics.com/images/uploads/EAP.pdf   *Cost-Benefit Analysis of Leaning against the Wind* by Trent Saunders and Peter Tulip https://rba.gov.au/publications/rdp/2019/2019-05.html   *Twenty-five Years of Inflation Targeting in Australia: Are There Better Alternatives for the Next 25 Years?* by Warwick McKibbin and Augustus Panton https://www.brookings.edu/research/twenty-five-years-of-inflation-targeting-in-australia-are-there-better-alternatives-for-the-next-25-years/   *The RBA Needs a New Post-virus Monetary Policy Game* by Richard Holden, Warwick McKibbin, and John Quiggin https://www.afr.com/policy/economy/the-rba-needs-a-new-post-virus-monetary-policy-game-20200505-p54ptw   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/29/20201 hour, 12 seconds
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Daniela Gabor on Financial Globalization, Capital Controls, and the Critical Macrofinance Framework

Daniela Gabor is a professor of economics and macrofinance at the University of West England at Bristol, where she works on shadow banking, capital markets, and transnational banking. Daniela is also a returning guest to the podcast, and she has a new paper out on the burgeoning field of critical macrofinance and how it sheds light on the past great financial crisis (2007-2009) and the present COVID-19 crisis. She re-joins Macro Musings to discuss this paper and how it can offer important insight into the current global economic environment.   Transcript for the episode can be found here.   Daniela’s Twitter: @DanielaGabor Daniela’s UWE Bristol profile: https://people.uwe.ac.uk/Person/DanielaGabor   Related Links:   *Critical Macro-Finance: A Theoretical Lens* by Daniela Gabor http://financeandsociety.ed.ac.uk/article/view/4408   *The Role of Time-Critical Liquidity in Financial Markets* by David Marshall and Robert Steigerwald https://www.chicagofed.org/publications/economic-perspectives/2013/2q-marshall-steigerwald   *The Growth of Financial Banking* by Anna Youngman https://www.journals.uchicago.edu/doi/abs/10.1086/251239?mobileUi=0&   *Daniela Gabor on Safe Assets and Shadow Banking* https://macromusings.libsyn.com/103-daniela-gabor-on-safe-assets-and-shadow-banking   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/22/20201 hour, 4 minutes, 13 seconds
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Darrell Duffie on Treasury Markets and the Post-COVID Path to Financial Stability

Darrell Duffie is a professor of finance at Stanford University, and he joins Macro Musings to discuss the treasury market problems that emerged in March 2020 and what can be done to avoid them in the future. Specifically, Darrell and David lay out the current state of financial markets, the ability of treasury markets, as currently designed, to handle demand shocks, and how central banking reforms can better ensure financial stability in the future.   Register here for the Cato Institute/Mercatus Center Webinar Series - *A Fed for Next Time: Ideas for a Crisis‐​Ready Central Bank*: https://www.cato.org/events/fed-next-time-ideas-crisis-ready-central-bank   Transcript for the episode can be found here.   Darrell’s Twitter: @DuffieDarrell Darrell’s website: https://www.darrellduffie.com/ Darrell’s Stanford profile: https://www.gsb.stanford.edu/faculty-research/faculty/darrell-duffie   Related Links:   Bonus segment with Darrell: https://youtu.be/0Y3MTjgbP74   *Pass-through Efficiency in the Fed’s New Monetary Policy Setting* by Darrell Duffie and Arvind Krishnamurthy https://www.gsb.stanford.edu/faculty-research/publications/passthrough-efficiency-feds-new-monetary-policy-setting   *The Failure Mechanics of Dealer Banks* by Darrell Duffie https://www.aeaweb.org/articles?id=10.1257/jep.24.1.51   *Still the World’s Safe Haven? Redesigning the U.S. Treasury Market after the COVID-19 Crisis* by Darrell Duffie https://www.brookings.edu/research/still-the-worlds-safe-haven/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/15/202052 minutes, 42 seconds
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Peter Stella on the Fed’s Off-Balance Sheet Transactions and Public Financing of the COVID-19 Crisis

Peter Stella is a former IMF official, where he led the Central Banking and Monetary and Foreign Exchange divisions, and he now hosts a webpage titled *Central Bank Archeology*. Peter is also a former guest of Macro Musings, and rejoins to talk about the COVID-19 crisis, central bank balance sheets, and more. David and Peter also discuss the dangers and challenges of the Fed’s off-balance sheet transactions, how the government should approach crisis financing, and who should be managing the country’s public debt.   The transcript for the episode can be found here.   Peter’s Twitter: @Stellar_Consult Peter’s Voxeu profile: https://voxeu.org/users/peterstella0 Peter’s Research Gate archive: https://www.researchgate.net/profile/Peter_Stella   Related Links:   Peter's *Central Bank Archaeology* website: https://www.centralbankarchaeology.com/   *Macro Musings: Peter Stella on Debt, Safe Assets, and Central Bank Operations* https://macromusings.libsyn.com/144-peter-stella-on-debt-safe-assets-and-central-bank-operations   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/8/20201 hour, 2 minutes, 44 seconds
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Adam Tooze on Dollar Dominance, the Eurozone, and the Future of Global Finance

Adam Tooze is a professor of history at Columbia University, and is the author of many books, including his popular account of the 2007-2009 crisis, titled Crashed: How a Decade of Financial Crisis Changed the World. Adam joins David on Macro Musings to discuss the COVID-19 crisis, the Eurozone, and the future of central banking. Specifically, Adam and David break down recent events and risks in the global financial system, the future of the dollar as reserve currency, and the implications of the recent German-Franco debt deal for the Eurozone.   Transcript for the episode can be found here.   Adam’s Twitter: @adam_tooze Adam’s Columbia profile: https://history.columbia.edu/faculty/adam-tooze/ Adam’s website: https://adamtooze.com/   Related Links:   *How Coronavirus Almost Brought Down the Global Financial System* by Adam Tooze https://www.theguardian.com/business/2020/apr/14/how-coronavirus-almost-brought-down-the-global-financial-system)   *The Death of the Central Bank Myth* by Adam Tooze https://foreignpolicy.com/2020/05/13/european-central-bank-myth-monetary-policy-german-court-ruling/   *Still the World's Safe Haven?* by Darrell Duffie https://www.brookings.edu/wp-content/uploads/2020/05/WP62_Duffie_updated.pdf   *Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold?* by Ethan Ilzetzki, Carmen M. Reinhart, Kenneth S. Rogoff https://www.nber.org/papers/w23134   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
6/1/20201 hour, 44 seconds
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Alp Simsek on a Risk-Centric View of Demand, Recession, and Speculation

Alp Simsek is an associate professor of economics at MIT, and joins Macro Musings to talk about the link between financial markets, uncertainty and the COVID-19 crisis. Specifically, David and Alp discuss the dual absorption problem within financial markets, how supply shocks and demand shocks have inescapably become interwoven phenomenon, and why we should look to using macroprudential policy in the future.   The transcript for the episode can be found here.   Alp’s Twitter: @alpsimsek_econ Alp’s MIT profile: https://economics.mit.edu/faculty/asimsek   Related Links:   Bonus segment with Alp: https://youtu.be/eoGxYcWmH9E   *A Risk-centric Model of Demand Recessions and Speculation* by Ricardo Caballero and Alp Simsek https://www.nber.org/papers/w23614   *A Model of Asset Price Spirals and Aggregate Demand Amplification of a ‘COVID-19’ Shock* by Ricardo Caballero and Alp Simsek https://www.nber.org/papers/w27044   *Prudential Monetary Policy* by Ricardo Caballero and Alp Simsek https://www.nber.org/papers/w25977   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/27/202059 minutes, 48 seconds
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Thomas Hoenig on Bank Capitalization and Fed Policy after COVID-19

Thomas Hoenig is a former vice chair of the FDIC, former president of the Kansas City Federal Reserve Bank, and is currently a distinguished senior fellow at the Mercatus Center at George Mason University. Tom’s research has focused on the long-term impact of the politicization of financial services, as well as the effects of government grant privileges on market performance. Tom joins David on Macro Musings to talk about COVID-19, the Fed's response to its economic impact, and the current state of banking in the United States.   Transcript for the episode can be found here.   Thomas’s Twitter: @tom_hoenig Thomas’s Mercatus profile: https://www.mercatus.org/scholars/thomas-hoenig   Related Links:   Bonus segment with Thomas: https://youtu.be/CrA1WRtu0jc   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/25/202055 minutes, 56 seconds
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Scott Sumner on the Government’s Response to COVID-19 and the Future of Level Targeting

Scott Sumner is the Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center at George Mason University, Professor Emeritus of economics at Bentley University, and a research fellow at the Independent Institute. As a returning guest to the podcast, Scott joins Macro Musings to give his latest thoughts on the COVID-19 crisis and its implications for monetary policy. Specifically, David and Scott discuss how the Fed can conduct more aggressive monetary policy, what a level targeting regime should look like in the future, and the current progression toward negative interest rates.   Transcript for the episode can be found here.   Scott’s Mercatus profile: https://www.mercatus.org/scholars/scott-sumner Scott’s blog: https://www.themoneyillusion.com/   Related Links:   Scott's bonus segment: https://www.youtube.com/watch?v=z8DXU_1oIsg&feature=youtu.be   *Reforming the Fed’s Toolkit and Quantitative Easing Practices: A Plan to Achieve Level Targeting* by Scott Sumner and Patrick Horan https://www.mercatus.org/publications/covid-19-policy-brief-series/reforming-feds-toolkit-and-quantitative-easing-practices   *Negative Interest Rates and Negative IOER* by Scott Sumner https://www.econlib.org/negative-interest-rates-and-negative-ioer/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/20/202050 minutes, 28 seconds
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Lev Menand on the Fed’s Lending Facilities and the Legal Concerns Surrounding Them

Lev Menand is a legal scholar at Columbia Law School and has previously worked for the New York Fed, the US Treasury Department, and the Financial Stability Oversight Council (FSOC). Lev Joins Macro Musings to talk about his new paper, *Unappropriated Dollars: The Fed’s Ad Hoc Lending Facilities and the Rules that Govern Them*. Specifically, David and Lev discuss opening up public Fed bank accounts, the importance of liquidity and credit facilities, and how Congress is using the CARES Act to skirt the Fed’s current legal mandates.   Transcript for the episode can be found here.   Lev’s Twitter: @LevMenand Lev’s Columbia Law profile: https://www.law.columbia.edu/faculty/lev-menand   Related Links:   Bonus segment with Lev: https://youtu.be/N9qndjjju9A   *Unappropriated Dollars: The Fed’s Ad Hoc Lending Facilities and the Rules That Govern Them* by Lev Menand https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3602740   *FedAccounts* by Morgan Ricks, John Crawford, and Lev Menand https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3192162   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/18/20201 hour, 3 minutes, 39 seconds
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Martin Hellwig on the Recent German Constitutional Court Ruling and Its Potential Eurozone Implications

Martin Hellwig is the director of the Max Planck Institute for Research on Collective Goods, and he joins Macro Musings to talk about the Eurozone and the implications of the recent German Constitutional Court (GCC) ruling for the future of the monetary union. David and Martin specifically discuss the background of the perceived Eurozone crisis, the power struggle between the GCC and the European Court of Justice, and how this case may lead to a total breakdown of the Eurozone.   Transcript for the episode can be found here.   Martin’s MPI profile: https://www.coll.mpg.de/martin-hellwig   Related Links:   Bonus segment with Martin: https://youtu.be/1POrO_8VcM0   *The Leverage Ratchet Effect* by Anat Admati, Peter DeMarzo, Martin Hellwig and Paul Pfleiderer https://www.gsb.stanford.edu/faculty-research/working-papers/leverage-ratchet-effect   *German Court Has Set a Bomb Under the EU Legal Order* by Martin Sandbu https://www.ft.com/content/79484c01-b66b-4f81-bdc6-fd4def940821   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/13/202043 minutes, 18 seconds
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Nathan Tankus on Public Finance in the COVID-19 Crisis: A Consolidated Budget Balance View and its Implications for Policy

Nathan Tankus is the director of research at the Modern Money Network, and a research fellow at the Global Institute for Sustainable Prosperity. Nathan is also the author of a number of articles on the Fed's recent activity at his Substack page titled “Notes on the Crises.” Nathan joins Macro Musings to talk about the post-Keynesian view of money, central bank independence, and the consolidated view of public finance, as well as evaluate the policy responses by the Fed and Congress to COVID-19.   Transcript for the episode can be found here.   Nathan’s Twitter: @NathanTankus Nathan’s Substack page: https://nathantankus.substack.com/   Related Links:   Bonus segment with Nathan: https://youtu.be/VPl0LYgttYI   *Monetary, Credit, and Fiscal Policies: A Collection of Statements Submitted to the Subcommittee on Monetary, Credit, and Fiscal Policies by Government Officials, Bankers, Economists, and Others (specifically a comment made by Albert G. Hart) by the Joint Committee on the Economic Report https://fraser.stlouisfed.org/files/docs/historical/congressional/1949jec_mcfpstate.pdf#page=332   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/11/202053 minutes, 35 seconds
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Anat Admati on the Perils of Corporate Debt and How COVID-19 Relief Efforts Have Gone Wrong

Anat Admati is a professor of finance and economics at Stanford University, and is well-known for her work on leveraging debt in our financial system and how it makes our economy more susceptible to shocks. She’s also a co-author of the popular book, *The Banker’s New Clothes: What Went Wrong with Banking and What to Do About It*. Anat joins Macro Musings again to talk about the COVID-19 crisis from the debt perspective, how the Fed and Congress have responded so far, and how their relief efforts should have been focused differently.      The transcript for the episode can be found here.   Anat’s Twitter: @anatadmati Anat’s website: https://admati.people.stanford.edu/   Related Links:   Bonus segment with Anat: https://youtu.be/4xHmmgoURqg   *The Banker’s New Clothes: What’s Wrong with Banking and What to Do about It* by Anat Admati and Martin Hellwig https://press.princeton.edu/books/paperback/9780691162386/the-bankers-new-clothes   *The Leverage Ratchet Effect* by Anat Admati, Peter DeMarzo, Martin Hellwig, and Paul Pfleiderer https://onlinelibrary.wiley.com/doi/abs/10.1111/jofi.12588   *Macrofinancial History and the New Business Cycle Facts* by Oscar Jorda, Mortiz Schularick, and Alan Taylor https://www.frbsf.org/economic-research/files/wp2016-23.pdf   *Coronavirus Crisis Lays Bare the Risks of Financial Leverage, Again” by Martin Wolf https://www.ft.com/content/098dcd60-8880-11ea-a01c-a28a3e3fbd33   *House of Debt: How They (And You) Caused the Great Recession, and How We Can Prevent It from Happening Again* by Atif Mian and Amir Sufi https://press.uchicago.edu/ucp/books/book/chicago/H/bo20832545.html   *Collateral Frameworks: The Open Secret of Central Banks* by Kjell Nyborg https://www.cambridge.org/core/books/collateral-frameworks/DE8BACD87F364A66DD496F601BE92FE7   *Bankruptcy for Banks: A Sound Concept That Needs Fine-Tuning* by Mark Roe and David Skeel https://www.nytimes.com/2016/08/17/business/dealbook/bankruptcy-for-banks-a-sound-concept-that-needs-fine-tuning.html   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/6/202043 minutes, 43 seconds
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Kathryn Judge on the CARES Act and the Political Implications of Relief Efforts

Kathryn Judge is the Harvey J. Goldschmid Professor of Law at Columbia Law School, the editor of the Journal of Financial Regulation, and an expert on financial markets, financial regulation, and regulatory architecture. Kathryn joins Macro Musings to discuss the CARES Act, the Fed's role and its limitations regarding COVID-19 relief efforts, and the political implications of relief effort performance.   Transcript for the episode can be found here.   Kathryn's Twitter: @ProfKateJudge Kathryn's Columbia profile: https://www.law.columbia.edu/faculty/kathryn-judge   Related Links:   Bonus segment with Kathryn: https://youtu.be/iFub37lpq2c   *The Design Flaw at the Heart of the CARES Act* by Kathryn Judge   https://www.forbes.com/sites/kathrynjudge/2020/04/20/the-design-flaw-at-the-heart-of-the-cares-act/#21495f0e6bed   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
5/4/202057 minutes, 33 seconds
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Jesus Fernandez-Villaverde on Central Bank Digital Currency and the Current Economic Responses to COVID-19

Jesus Fernandez-Villaverde is a professor of economics at the University of Pennsylvania, a research associate with the National Bureau of Economic Research, a research affiliate with the Center for Economic Policy Research, and a returning guest to the podcast. Jesus specializes in macroeconomic modeling and economic history among other topics, and he joins Macro Musings to talk about COVID-19, central bank digital currency, and developments in the Eurozone. David and Jesus also discuss the history of central banks and the interacting public, how threatening inflation could become a useful tool for a central bank, and the value economic modeling could add to the epidemiological field.   Transcript for the episode can be found here.   Jesus’s UPenn profile: https://www.sas.upenn.edu/~jesusfv/ Jesus’s NBER archive: https://www.nber.org/people/jesus_fernandez-villaverde   Related Links:   Bonus segment with Jesus: https://youtu.be/CA6y9LqjDwQ   *Estimating and Simulating a SIRD Model of COVID-19 for Many Countries, States, and Cities* by Jesus Fernandez-Villaverde & Charles Jones https://web.stanford.edu/~chadj/sird-paper.pdf   *Central Bank Digital Currency: Central Banking For All?* by Jesus Fernandez-Villaverde, Daniel Sanches, Linda Schilling, & Harald Uhlig https://bfi.uchicago.edu/working-paper/central-bank-digital-currency-central-banking-for-all/   *Central Bank Digital Currency in a Nominal World* by Jesus Fernandez-Villaverde, Daniel Sanches, Linda Schilling, & Harald Uhlig https://www.sas.upenn.edu/~jesusfv/CBDC_Nominal.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/29/20201 hour, 1 minute, 3 seconds
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George Selgin on the Fed-Treasury Relationship, New Lending Facilities, and the Fed’s Evolving Role in Response to COVID-19

George Selgin is the Director of the Cato Institute Center for Monetary and Financial Alternatives and a returning guest to Macro Musings. He joins David to break down recent policy actions by the Federal Reserve and some of the resulting challenges, as they break down the Treasury’s recent $454 billion backstop on Federal Reserve lending, the complex array of new Fed lending facilities in response to COVID-19, and the Fed’s evolving role in the global economy.   The transcript for the episode can be found here.   George’s Twitter: @GeorgeSelgin George’s Cato profile: https://www.cato.org/people/george-selgin   Related Links:   Bonus segment with George: https://youtu.be/Q73pWOeldf4   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/27/20201 hour, 4 minutes, 29 seconds
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Mehrsa Baradaran on How COVID-19 is Exposing Existing Societal Wealth Gaps and Financial Access Challenges

Mehrsa Baradaran is a professor of law at the University of California Irvine and researches banking law, financial inclusion, inequality, and the racial wealth gap. Her scholarship includes the books, *How the Other Half Banks* and *The Color of Money: Black Banks and the Racial Wealth Gap.* Mehrsa joins Macro Musings to talk about the impact of COVID-19 and how existing wealth conditions and financial access challenges are exacerbating the crisis. David and Mehrsa also discuss the historical context for the racial wealth gap, why banking deserts are so consequential, and how a postal savings system may be a solution to the financial inclusion problem.   Transcripts for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Mehrsa’s Twitter: @MehrsaBaradaran Mehrsa’s UCI profile: https://www.law.uci.edu/faculty/full-time/baradaran/   Related Links:   Link to bonus segment with Mehrsa: https://youtu.be/AcH3c89ZtKY   *How the Other Half Banks: Exclusion, Exploitation, and the Threat to Democracy* by Mehrsa Baradaran https://www.hup.harvard.edu/catalog.php?isbn=9780674983960   *The Color of Money: Black Banks and the Racial Wealth Gap* by Mehrsa Baradaran https://www.hup.harvard.edu/catalog.php?isbn=9780674237476   *The U.S. Should Just Send Checks – But Won’t* by Mehrsa Baradaran https://www.theatlantic.com/ideas/archive/2020/04/the-us-should-just-write-checksbut-wont/609637/   *Rethinking Financial Inclusion: Designing an Equitable Financial System with Public Policy* by Mehrsa Baradaran https://rooseveltinstitute.org/rethinking-financial-inclusion-equitable-financial-system-public-policy/   *The Coronavirus Will Be a Catastrophe for the Poor* by Derek Thompson https://www.theatlantic.com/ideas/archive/2020/03/coronavirus-will-supercharge-american-inequality/608419/   Link to Aaron Klein Macro Musings episode: https://macromusings.libsyn.com/aaron-klein-on-real-time-payments-and-financial-regulation   Link to *Mapping Inequality* from the Digital Scholar Lab at the University of Richmond: https://dsl.richmond.edu/panorama/redlining/#loc=5/40.464/-94.592   JPMorgan Research: *Racial Gaps in Financial Outcomes* https://institute.jpmorganchase.com/institute/research/household-income-spending/report-racial-gaps-in-financial-outcomes#finding-1   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/22/20201 hour, 1 minute, 10 seconds
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Nicholas Bloom on Economic Impacts of COVID-19 in the Short-run and Long-run

Nicholas Bloom is a professor of economics at Stanford University and a leading scholar on management, productivity, innovation and economic uncertainty. Nick is a previous guest of Macro Musings and returns to share his thoughts on COVID-19 and what it means for the US economy, both in the short-run and in the long-run. David and Nick also discuss the impact of the virus on the future of urban living, on the economics profession as a whole, and who will bear the biggest brunt of these impacts.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Nick’s NBER archive: https://www.nber.org/people/nick_bloom Nick’s Stanford profile: https://www.gsb.stanford.edu/faculty-research/faculty/nicholas-bloom   Related Links:   Bonus segment with Nick: https://youtu.be/q2M0TLwV_Xw   *COVID-Induced Economic Uncertainty* by Scott R. Baker, Nicholas Bloom, Steven J. Davis, and Stephen J. Terry. https://www.nber.org/papers/w26983   *U.S. Economic Activity During the Early Weeks of the SARS-Cov-2 Outbreak* by Daniel J. Lewis, Karel Mertens, and Jim Stock. https://www.newyorkfed.org/research/staff_reports/sr920   *Depression Babies: Do Macroeconomic Experiences Affect Risk-Taking?* by Ulrike Malmendier and Stefan Nagel. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1369049   *Managing with Style* by Marianne Bertrand and Antoinette Schoar. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=376880   *Are Ideas Getting Harder to Find?* by Nicholas Bloom, Charles I. Jones, John Van Reenen, and Michael Webb. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3039019   *Does Working from Home Work? Evidence from a Chinese Experiment* by Nicholas A. Bloom, James Liang, John Roberts, Zhichun Jenny Ying https://nbloom.people.stanford.edu/sites/g/files/sbiybj4746/f/wfh.pdf   *How Many Jobs Can be Done at Home?* by Jonathan I. Dingel and Brent Neiman. https://bfi.uchicago.edu/wp-content/uploads/BFI_White-Paper_Dingel_Neiman_3.2020.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/20/202053 minutes, 31 seconds
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Brad Setser on Addressing the Global Dollar Shortage and COVID-19’s Implications for Worldwide Trade Imbalances

Brad Setser is a senior fellow for international economics at the Council on Foreign Relations, where he works on macroeconomics, global capital flows, and financial crisis issues. Brad has previously served as the deputy assistant secretary at the U.S. Treasury, working on Europe’s financial crisis, currency policy, financial sanctions, commodity shocks, and Puerto Rico’s debt crisis, and was the director for international economics on the staff of the National Economic Council and the National Security Council. As a returning guest to the show, Brad joins Macro Musings once again to discuss dollars swap lines and other solutions to the global dollar shortage, the recent implications of COVID-19 on global trade imbalances, and how China should respond to the effects of this crisis.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Brad’s Twitter: @Brad_Setser Brad’s CFR profile: https://www.cfr.org/expert/brad-w-setser   Related Links:   Bonus segment with Brad Setser: https://youtu.be/YsdynQgWHFg   *Addressing the Global Dollar Shortage: More Swap Lines? A New Repo Facility for Central Banks? More IMF Lending?* by Brad Setser https://www.cfr.org/blog/addressing-global-dollar-shortage-more-swap-lines-new-fed-repo-facility-central-banks-more-imf   *Why the Dollar Crunch is (mostly) a Rich World Problem* by Claire Jones https://ftalphaville.ft.com/2020/03/24/1585041854000/Why-the-dollar-crunch-is--mostly--a-rich-world-problem/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/15/202049 minutes, 48 seconds
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Alex Tabarrok on COVID-19 Response Efforts, Proposals for Continued Recovery, and Lessons for the Future

Alex Tabarrok is a professor of economics at George Mason University and a research fellow at the Mercatus Center. Alex joins David Beckworth on the podcast to discuss how best to deal with COVID-19 and what lessons we can learn from it moving forward.     Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Alex’s Twitter: @ATabarrok Alex’s GMU profile: https://mason.gmu.edu/~atabarro/   Related Links:   Bonus segment with Tabarrok: https://www.youtube.com/watch?v=tQUnnumgXvw&feature=youtu.be   *Pandemic Policy in Developing Countries: Recommendations for India* by Shruti Rajagopalan and Alex Tabarrok https://www.mercatus.org/publications/covid-19-policy-brief-series/pandemic-policy-developing-countries-recommendations-india   Chad Brown’s PIIE archive, which include a series of articles related to COVID-19 and its impact on trade: https://www.piie.com/experts/senior-research-staff/chad-p-bown   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/13/202054 minutes, 30 seconds
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Ashoka Mody on COVID-19’s Impacts on Global Trade, Credit Markets and the Broader Eurozone

Ashoka Mody is a professor of international economic policy at Princeton University, has formerly worked at the IMF and the World Bank, and is a returning guest to Macro Musings. In this episode, he joins David to discuss the global economic implications of COVID-19 and what it specifically means for Europe and the Eurozone.   Transcript for the episode: https://www.mercatus.org/bridge/tags/macro-musings   Ashoka’s Twitter: @AshokaMody Ashoka’s Princeton profile: https://scholar.princeton.edu/amody/home   Related Links:   Cover of Ashoka's new paperback book: https://i.imgur.com/1IYWBAk.jpg   Bonus segment with Ashoka Mody: https://www.youtube.com/watch?v=QZsAetHdzjA&feature=youtu.be   *Charting the Crisis* by Ashoka Mody http://econbrowser.com/archives/2020/03/guest-contribution-charting-this-crisis   *Euro Tragedy: A Drama in Nine Acts* by Ashoka Mody https://global.oup.com/academic/product/eurotragedy-9780199351381?cc=us&lang=en&   *Credit Booms Gone Bust: Monetary Policy, Leverage Cycles, and Financial Crises, 1870-2008* by Alan Taylor and Moritz Schularick https://www.aeaweb.org/articles?id=10.1257/aer.102.2.1029   *European Monetary Unification* by Barry Eichengreen https://www.jstor.org/stable/2728243?seq=1   *Pandemics Depress the Economy, Public Health Interventions Do Not: Evidence from the 1918 Flu* by Sergio Correia, Stephan Luck, and Emil Verner https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3561560   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/8/202055 minutes, 4 seconds
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Peter Conti-Brown on the CARES Act and the Expanding Fed-Treasury Relationship in Response to COVID-19

Peter Conti-Brown – a legal scholar and financial historian at the University of Pennsylvania, as well as a Nonresident Fellow in Economic Studies at the Brookings Institution – returns to Macro Musings to discuss the new Fed-Treasury relationship that is emerging in the wake of the war against COVID-19. Peter and David breakdown the CARES Act, the aggressive and extensive policies recently taken by the Fed, and the implications for monetary policy moving forward.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Peter’s Twitter: @PeterContiBrown Peter’s Brookings profile: https://www.brookings.edu/author/peter-conti-brown/ Peter’s Wharton profile: https://lgst.wharton.upenn.edu/profile/petercb/   Related Links:   *Explaining the New Fed-Treasury Emergency Fund* by Peter Conti-Brown https://www.brookings.edu/research/explaining-the-new-fed-treasury-emergency-fund/   *What’s the Fed Doing in Response to the COVID-19 Crisis? What More Could it Do?* by Jeffrey Cheng, Dave Skidmore, and David Wessel https://www.brookings.edu/research/fed-response-to-covid19/   *The Foreign Affairs of the Federal Reserve* by Peter Conti-Brown and David Zaring https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3169870   *Longer-Run Economic Consequences of Pandemics* by Oscar Jorda, Sanjay Singh, and Alan Taylor https://www.frbsf.org/economic-research/files/wp2020-09.pdf   Bonus segment featuring Peter Conti-Brown: https://youtu.be/GJF2RlQ8po4   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/6/20201 hour, 1 minute, 47 seconds
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Skanda Amarnath, Yakov Feygin, and Elizabeth Pancotti on Municipal Bond Market Intervention and the CARES Act as Responses to COVID-19

Skanda Amarnath is the Director of Research and Analysis at Employ America, Yakov Feygin is the Associate Director of the Future of Capitalism program at the Berggruen Institute, and Elizabeth Pancotti is a research assistant at the National Bureau of Economic Research and at Tufts University. Together, they have put together proposals on how to better address the challenges of the COVID-19 crisis at the state and local level. They join Macro Musings today to discuss these proposals, a municipal bond market and expanded unemployment insurance, as well as what it all means for making the US economy more of an optimal currency area. Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Skanda’s Twitter: @IrvingSwisher Skanda’s Medium profile: https://medium.com/@skanda_97974   Yakov’s Twitter: @BuddyYakov Yakov’s Berggruen Institute profile: https://www.berggruen.org/people/yakov-feygin/   Elizabeth’s Twitter: @ENPancotti Elizabeth’s website: https://sites.google.com/view/elizabethpancotti/home   Related Links:   *The Fed Can and Should Support State Government Efforts to Respond to COVID-19 Right Now* by Skanda Amarnath and Yakov Feygin https://medium.com/@skanda_97974/the-fed-can-and-should-support-state-government-efforts-to-respond-to-covid-19-right-now-5e5ecf7b7ed8   *Unemployment Benefit Expansions: A Guide for Policy Responses in the Wake of COVID-19* by Elizabether Pancotti https://medium.com/@employamerica/unemployment-benefit-expansions-a-guide-for-policy-responses-in-the-wake-of-covid-19-ec3da6e8701   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
4/1/202055 minutes, 37 seconds
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Jim Bianco on Policy Responses to the Coronavirus: Details, Implications, and Concerns Moving Forward

Jim Bianco, of Bianco Research, joins Macro Musings to discuss the latest on the economic impact from the coronavirus. David and Jim discuss the details and implications of the $2 Trillion Relief bill, the possibility of higher inflation, renewed threats to Fed independence, and implications for the Eurozone.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Jim’s Twitter: @biancoresearch Jim’s Bloomberg archive: https://www.bloomberg.com/opinion/authors/ABvwE0aTOvg/jim-bianco   Related Links: *The Fed's Cure Risks Being Worse Than the Disease* by Jim Bianco https://www.bloomberg.com/opinion/articles/2020-03-27/federal-reserve-s-financial-cure-risks-being-worse-than-disease   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/30/20201 hour, 1 minute, 23 seconds
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Robin Brooks on COVID-19’s Impact on Emerging Markets and the Domestic Policy Response to the Crisis

Robin Brooks is a chief economist at the Institute of International Finance and has previously worked for Goldman Sachs and the IMF. Robin joins Macro Musings to talk about the global economic implications of the novel coronavirus. David and Robin also discuss what is happening to output gap measures, where the global dollar cycle stands today, and the importance of dollar swap lines for emerging markets.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Robin’s Twitter: @RobinBrooksIIF Robin’s IIF profile: https://www.iif.com/About-Us/Our-Leadership   Related Links:   *Federal Reserve Announces Extensive New Measures to Support the Economy* https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/25/202053 minutes, 13 seconds
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Stan Veuger on Helping Businesses Survive in the Post-Coronavirus Economy

Stan Veuger is a resident scholar at the American Enterprise Institute where he specializes in political economy and public finance. Stan joins us today to discuss his co-authored proposal to save American businesses and American jobs as well as his thoughts on how Europe is handling the crisis. Specifically, David and Stan discuss the Federal Reserve’s ability to support targeted business loans, how the crisis has been panning out in Europe, and the timeline to global recovery.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Stan’s Twitter: @stanveuger Stan’s AEI profile: https://www.aei.org/profile/stan-veuger/   Related Links:   *How to Help American Businesses Endure and Jobs Survive* by Stan Veuger and Steven Hamilton https://www.aei.org/economics/how-to-help-american-businesses-endure-and-jobs-survive/   *Throwing a COVID-19 Liquidity Life-Line* by Markus Brunnermeier, Jean-Pierre Landau, Marco Pagano, and Ricardo Reis https://scholar.princeton.edu/sites/default/files/markus/files/covid_liquiditylifeline.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/23/202053 minutes, 31 seconds
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Claudia Sahm on Direct Payments to Individuals and Other Policy Responses to the COVID-19 Crisis

Claudia Sahm is the Director of Macroeconomic Policy at the Washington Center for Equitable Growth and formerly was a section chief at the Board of Governors of the Federal Reserve System. Claudia specializes in macroeconomics and household finance, and joins the show today to talk about what the Fed has recently done and what fiscal policy can do in response to the economic meltdown caused by COVID-19. Specifically, David and Claudia discuss sending out direct payments to individuals, what the Fed’s remaining toolkit may look like, and how the freshly minted Sahm Rule may be of paramount importance as this crisis continues to develop.    Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Claudia’s Twitter: @Claudia_Sahm Claudia’s Equitable Growth profile: https://equitablegrowth.org/people/claudia-sahm/   Related Links:   *The Case for a Big Coronavirus Stimulus* by Jason Furman  https://www.wsj.com/articles/the-case-for-a-big-coronavirus-stimulus-11583448500?mod=rsswn   *Go Big Or Go Home* by Tim Duy https://blogs.uoregon.edu/timduyfedwatch/2020/03/16/go-big-or-go-home/   *COVID-19 Pandemic, Direct Cash Transfers, and the Federal Reserve* by David Beckworth https://www.mercatus.org/publications/monetary-policy/covid-19-pandemic-direct-cash-transfers-and-federal-reserve   David’s Twitter: @DavidBeckworth David’s Blog: http://macromarketmusings.blogspot.com/
3/18/202056 minutes, 29 seconds
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James Sweeney on the Money View Framework and COVID-19’s Implications for the Macro Economy

James Sweeney is the chief economist at Credit Suisse and joins us today as a part of our ongoing special coverage to talk about the coronavirus or COVID-19 and its implications for the economy. Specifically, David and James discuss what this pandemic means for the plumbing of the financial system, interest rates, and the type of recession we might experience.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   James’s Credit Suisse profile: https://www.credit-suisse.com/microsites/conferences/aic/en/speakers/cs-experts/james-sweeney.html   Related Links:   *Global Money Notes #27: Covid-19 and Global Dollar Funding* by Zoltan Pozsar and James Sweeney https://plus.credit-suisse.com/rpc4/ravDocView?docid=V7k0P32AC-WEqAJ7   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/16/202050 minutes, 16 seconds
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Megan Greene on How to Use Monetary and Fiscal Policy to Fight the Coronavirus Crisis

Megan Greene is a senior fellow at Harvard University’s Kennedy School and a senior fellow in international economics at Chatham House. Formerly, Megan was a chief economist on Wall Street and she currently has a bi-weekly column in the Financial Times on global macroeconomics. She joins the show today to talk about the coronavirus and the appropriate policy response to it as well as the future countercyclical macro policy in the United States. David and Megan also discuss the Fed’s future framework, arguments against the recent 50 basis point rate cut, and why the Fed should consider following the ECB’s lead on TLTROs as well as negative interest rates.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Megan’s Twitter: @economistmeg Megan’s website: https://economistmeg.com/about/   Related Links:   *Coronavirus May Be Worse Than Wall Street Is Wagering* by Megan Greene https://www.ft.com/content/44c9391c-5489-11ea-a1ef-da1721a0541e   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/11/202056 minutes, 14 seconds
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Ben Moll on the Basics of HANK Models and How They Can Be Applied to Policymaking

Ben Moll is a professor of economics at the London School of Economics, and is well known for his work on income and wealth distribution in macroeconomics and its implications for policy. Ben joins the show today to talk about this work and provide a look into the growing field of heterogeneous agent models. David and Ben also discuss the history of macro thought, the implications of different transmission mechanisms of monetary policy, and what HANK models mean for forward guidance and other more general makeup policies.   The transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Ben’s Twitter: @ben_moll Ben’s LSE website: https://benjaminmoll.com/   Related Links:   *Monetary Policy According to HANK* by Greg Kaplan, Ben Moll, and Giovanni Violante https://www.princeton.edu/~moll/HANK.pdf   *Household Balance Sheet Channels of Monetary Policy: A Back of the Envelope Calculation for the Euro Area* by Jiri Slacalek, Oreste Tristani, and Giovanni Violante https://cepr.org/active/publications/discussion_papers/dp.php?dpno=14245   *Heterogeneous Agents Macroeconomics Has a Long History, and it Raises Many Questions* by Beatrice Cherrier https://beatricecherrier.wordpress.com/2018/11/28/heterogeneous-agent-macroeconomics-has-a-long-history-and-it-raises-many-questions/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/9/202058 minutes, 30 seconds
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Scott Sumner on How Central Banks Should Respond to the Coronavirus Threat

Scott Sumner is the Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center at George Mason University, and a returning guest to Macro Musings. Scott joins the show today to talk about the recent market turmoil caused by the COVID-19 coronavirus and its implications for monetary policy.  David and Scott also discuss how the Fed should respond to a possible pandemic, why monetary policy is preferable to fiscal policy during a crisis, and how to approach the central bank credibility problem.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Scott’s blog: https://www.themoneyillusion.com/ Scott’s Mercatus profile: https://www.mercatus.org/scholars/scott-sumner   Related Links:   *It’s Time for the Fed to Take On the Coronavirus Threat* by David Beckworth https://www.nationalreview.com/2020/02/its-time-for-the-fed-to-take-on-the-coronavirus-threat/   *The Era of Fed Power is Over. Prepare for a More Perilous Road Ahead.* by Greg Ip https://www.wsj.com/articles/shrinking-influence-of-central-banks-ends-decades-of-business-as-usual-11579103829?mod=rsswn   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
3/2/202054 minutes, 9 seconds
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Paul Schmelzing on the ‘Suprasecular’ Decline of Global Real Interest Rates

Paul Schmelzing is an economic historian, a visiting scholar at the Bank of England and a postdoc at the Yale University School of Management. Paul has written an influential new paper on the long history of interest rates titled, "Eight centuries of global real interest rates, R-G, and the ‘suprasecular’ decline, 1311–2018." Specifically, Paul and David discuss the implications of this paper’s findings for secular stagnation theory, Thomas Piketty’s inegalitarian wealth spiral, and for macroeconomic policy more generally.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Paul’s Twitter: @paul_schmelzing Paul’s Harvard profile: https://scholar.harvard.edu/pfschmelzing/bio   Related Links:   * Eight Centuries of Global Real Interest Rates, R-G, and the ‘Suprasecular’ Decline, 1311–2018* by Paul Schmelzing https://www.bankofengland.co.uk/working-paper/2020/eight-centuries-of-global-real-interest-rates-r-g-and-the-suprasecular-decline-1311-2018   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
2/24/20201 hour, 6 seconds
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Ernie Tedeschi on Output Gaps, Labor Markets, and the State of the Economy

Ernie Tedeschi is a policy economist and the head of fiscal analysis at Evercore ISI, a macro advisory firm. He is also an occasional contributor to The Upshot section at The New York Times. Previously, Ernie was a senior advisor and an economist at the US Department of Treasury. His research interests include the federal budget, monetary policy, and labor markets. Ernie joins the show to talk about output gaps, full employment, labor markets, and the state of the economy. Specifically, Ernie and David discuss Ernie’s recent articles titled *Participation in the Hot Labor Market* and *Pay is Rising Fastest for Low Earners, One Reason? Minimum Wages.*   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/monetary-policy   Ernie’s Twitter: @ernietedeschi Ernie’s blog: https://medium.com/bonothesauro   Related Links:   *Participation and the Hot Labor Market* by Ernie Tedeschi https://medium.com/@employamerica/participation-and-the-hot-labor-market-a84ef77a3bb1   *Pay is Rising Fastest for Low Earners. One Reason? Minimum Wages.* by Ernie Tedeschi https://www.nytimes.com/2020/01/03/upshot/minimum-wage-boost-bottom-earners.html   *Labor Force Participation: Recent Developments and Future Prospects* by Stephanie Aaronson, Tomaz Cajner, Bruce Fallick, Felix Galbis-Reig, Christopher L. Smith, and William Wascher https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2495029   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
2/17/20201 hour, 5 minutes, 57 seconds
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Brent Skorup on Autonomous Vehicles, Flying Cars, and Airspace as a Scarce Resource

Brent Skorup is a senior research fellow at the Mercatus Center where he specializes in transportation technology, telecommunications, aviation, and wireless policy. Brent also serves on the FCC’s broadband deployment advisory committee and the Texas Department of Transportation’s autonomous vehicle task force, and he has recent spoke on the topic of airspace design at the Global Air Traffic Management Conference in Dubai. He joins the show today to talk about the future of transportation, including flying cars and highways in the sky. Brent and David also discuss the concept of auctioning airspace, the macroeconomic implications of technological innovation, and how to build or improve infrastructure for autonomous vehicles in the future.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/02102020/brent-skorup-autonomous-vehicles-flying-cars-and-airspace-scarce-resource   Brent’s Twitter: @bskorup Brent’s Mercatus profile: https://www.mercatus.org/scholars/brent-skorup   Related Links:   *Your Flying Car Will Be Here Sooner Than You Think* by Brent Skorup https://www.wsj.com/articles/your-flying-car-will-be-here-sooner-than-you-think-1542327046   *Auctioning Airspace* by Brent Skorup https://www.mercatus.org/system/files/skorup-auctioning-airspace-mercatus-working-paper-v1.pdf   *Smart Cities, Dumb Infrastructure* by Korok Ray & Brent Skorup https://www.mercatus.org/publications/technology-and-innovation/smart-cities-dumb-infrastructure   *Auto Purchase Trends, Mobility as a Service, and Autonomous Vehicle Adoption* by Brent Skorup https://www.mercatus.org/bridge/commentary/auto-purchase-trends-mobility-service-and-autonomous-vehicle-adoption   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
2/10/202055 minutes, 34 seconds
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Marc Lavoie on Canadian Central Bank Policy, Real-time Payments, and the Post-Keynesian Tradition

Marc Lavoie is a professor of economics at the University of Ottawa and an author a recent article on the Bank of Canada’s operating system. Marc is also the coauthor of a popular textbook titled, *Monetary Economics: An integrated Approach to Credit, Money, Income, Production, and Wealth.* He joins the show today to talk about these works and more. David and Marc also discuss differences between post-Keynesian and mainstream macroeconomics, the history and defining characteristics of Canada’s corridor operating system, and what ideal central bank policy might look like for Canada in the future.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/02032020/marc-lavoie-canadian-central-bank-policy-real-time-payments-and-post   Marc’s University of Ottawa profile: https://uniweb.uottawa.ca/members/942/profile Marc’s Institute for New Economic Thinking archive: https://www.ineteconomics.org/research/experts/mlavoie   Related Links:   *A System with Zero Reserves and with Clearing Outside of the Central Bank: The Canadian Case* by Marc Lavoie https://www.tandfonline.com/doi/abs/10.1080/09538259.2019.1616922   *Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth* by Wynne Godley and Marc Lavoie https://link.springer.com/book/10.1007/978-1-137-08599-3   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
2/3/20201 hour, 1 minute, 1 second
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Joseph Gagnon on Central Banks’ Ability to Fight the Next Recession

Joseph Gagnon is a senior fellow at the Peterson Institute for International Economics and formerly, a senior staffer at the Federal Reserve Board of Governors. Joseph is also a returning guest to Macro Musings, and he joins the show today to discuss his recent policy brief titled, “Are Central Banks Out of Ammunition to Fight a Recession? Not quite.” Specifically, David and Joseph discuss the variety of monetary policy tools available to central banks to combat the next recession (with special emphasis on the Federal Reserve, European Central Bank, and Bank of Japan). Joseph also makes the case that the ECB should adopt a formal review of its monetary policy framework.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/01242020/joseph-gagnon-central-banks%E2%80%99-ability-fight-next-recession   Joseph’s Twitter: @GagnonMacro Joseph’s PIIE profile: https://www.piie.com/experts/senior-research-staff/joseph-e-gagnon   Related Links:   *Are Central Banks Out of Ammunition to Fight a Recession? Not Quite.* by Joseph Gagnon & Christopher Collins https://www.piie.com/publications/policy-briefs/are-central-banks-out-ammunition-fight-recession-not-quite   *Priorities for Review of the ECB’s Monetary Policy Strategy* by Jeremie Cohen-Setton, Christopher Collins, and Joseph Gagnon https://www.piie.com/commentary/speeches-papers/priorities-review-ecbs-monetary-policy-strategy   *How Did Quantitative Easing Really Work? A New Methodology for Measuring the Fed's Impact on Financial Markets* by Ramin Toloui https://siepr.stanford.edu/sites/default/files/publications/19-032.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
1/27/202057 minutes, 16 seconds
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Macro Musings Producers’ Special – A Recap of 2019 and a Glimpse into the Future

Title: Macro Musings Producers’ Special – A Recap of 2019 and a Glimpse into the Future   Description:   To accompany the new year, David Beckworth is joined by the producers of Macro Musings, Marc and Carter, to talk about the highlights of the podcast throughout 2019, including their personal favorite episodes and the top episodes according to listener statistics. They also discuss some of the most important macroeconomic issues and events of the past year, including the yield curve inversion and ensuing recession speculation, the secular decline of interest rates, the Fed’s big 2019 review, and more.   A massive thank you to all of our listeners who have tuned in over the past few years, and we hope you continue to tune in for more exciting content as we navigate through 2020.   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth   Related Links:   Producers’ Top 3 Episodes:   Robert Graboyes: https://www.mercatus.org/bridge/podcasts/05132019/robert-graboyes-monetary-history-small-coins Bryan Cutsinger: https://www.mercatus.org/bridge/podcasts/03292019/civil-war-and-economics-seigniorage Salim Furth: https://www.mercatus.org/bridge/podcasts/06242019/land-use-regulations-rise-nimbyism-and-options-reform   Listeners’ Top 3 Episode:   Peter Stella: https://www.mercatus.org/bridge/podcasts/02182019/peter-stella-debt-safe-assets-and-central-bank-operations Tyler Cowen: https://www.mercatus.org/bridge/podcasts/07222019/tyler-cowen-culture-big-business-united-states Michael Strain: https://www.mercatus.org/bridge/podcasts/03042019/populism-mmt-and-billionaires   David’s Top 3 Episodes:   Donald Kohn: https://www.mercatus.org/bridge/podcasts/02012019/burns-powell Paul Tucker: https://www.mercatus.org/bridge/podcasts/03252019/paul-tucker-central-bank-independence-and-unelected-power Alex Tabarrok: https://www.mercatus.org/bridge/podcasts/09092019/alex-tabarrok-elements-economic-growth-and-decline-dynamism
1/20/202056 minutes, 14 seconds
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Eric Sims on New Keynesian Modelling and the Future of Macroeconomics in a Low Interest Rate Environment

Eric Sims is the chair of the economics department at the University of Notre Dame and is a research associate with the National Bureau of Economic Research and the Cleveland Federal Reserve Bank. Eric, along with his colleague, Cynthia Wu, have a number of recent papers addressing monetary policy in low interest rate environments, including a keynote paper presented this past summer at the Chicago Fed Conference that was part of the Fed's big review this year. He joins the show today to talk about this work, focusing on the latest developments in New Keynesian modelling and the current state of macroeconomic research. Specifically, David and Eric discuss the Four Equation New Keynesian Model, the Desirability of NGDP Targeting, and the welfare and cyclical implications of moderate trend inflation.   Transcript for the episode: https://www.mercatus.org/bridge/commentary/eric-sims-new-keynesian-modelling-and-future-macroeconomics-low-interest-rate   Eric’s Notre Dame profile: https://www3.nd.edu/~esims1/ Eric’s NBER archive: https://www.nber.org/people/eric_sims   Related Links:   *On the Desirability of Nominal GDP Targeting* by Julio Garin, Robert Lester, & Eric Sims https://www.nber.org/papers/w21420   *The Four Equation New Keynesian Model* by Eric Sims & Jing Cynthia Wu https://www.nber.org/papers/w26067   *Raise Rates to Raise Inflation? Neo-Fisherianism in the New Keynesian Model* by Julio Garin, Robert Lester, & Eric Sims* https://www.nber.org/papers/w22177   *On the Welfare and Cyclical Implications of Moderate Trend Inflation* by Guido Ascari, Louis Phaneuf, & Eric Sims* https://www.nber.org/papers/w21392   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
1/13/20201 hour, 29 seconds
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Peter Conti-Brown on *Restoring the Promise of Federal Reserve Governance*

Peter Conti-Brown is an assistant professor at the Wharton School at the University of Pennsylvania and a nonresident fellow at the Brookings Institution. Peter is also a historian and a legal scholar specializing in the study of the Federal Reserve and is a returning guest to Macro Musings. He joins the show today to talk about his new paper, *Restoring the Promise of Federal Reserve Governance*. Specifically, David and Peter discuss the institutional history of the Federal Reserve Board, the lack of transparency in the Fed appointment process, and why we should consider raising Fed governor salaries in the future.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/01062020/peter-conti-brown-restoring-promise-federal-reserve-governance   Peter’s Twitter: @PeterContiBrown Peter’s Wharton profile: https://lgst.wharton.upenn.edu/profile/petercb/   Related Links:   *Restoring the Promise of Federal Reserve Governance* by Peter Conti-Brown https://www.mercatus.org/system/files/conti-brown-fed-governance-mercatus-working-paper-v1.pdf   *John Williams May Be One of the Best Central Bankers – But That Doesn’t Mean He Should Run the New York Fed* by Peter Conti-Brown https://www.brookings.edu/research/john-williams-may-be-one-of-the-best-central-bankers-but-that-doesnt-mean-he-should-run-the-new-york-fed/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
1/6/202055 minutes, 50 seconds
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Josh Galper on the Current State of Repo Markets, Key Bottlenecks, and a Balanced Proposal to Restore Stability

Josh Galper is the managing principal of Finadium, an independent consultancy in capital markets based out of New York City. He joins the show today as part of a two week special on the Fed and repo markets, as he helps us take a look at recent repo market stress from the private sector. Specifically, David and Josh discuss the current state of US repo markets, key bottlenecks that have arisen in 2019, and a balanced proposal to restoring stability in capital markets.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12232019/josh-galper-current-state-repo-markets-key-bottlenecks-and-balanced   Josh’s Twitter: @Finadium Josh’s Finadium profile: https://finadium.com/josh-galper-mba/   Related Links:   Finadium’s homepage: http://finadium.com Finadium’s magazine: http://securitiesfinancemonitor.com   *US Repo at Year-End 2019: The Hard Choices Ahead* by Josh Galper https://finadium.com/finadium-us-repo-at-year-end-2019-the-hard-choices-ahead/   *Are New Repo Participants Gaining Ground?* by Adam Copeland, Ira Selig, & Anya Tarascina https://libertystreeteconomics.newyorkfed.org/2019/04/are-new-repo-participants-gaining-ground.html   Repo week episode one: *George Selgin on Repo Market Stress, Fed Balance Sheet Volatility, and a Standing Repo Facility* https://macromusings.libsyn.com/george-selgin-on-repo-market-stress-fed-balance-sheet-volatility-and-a-standing-repo-facility   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
12/23/201953 minutes, 35 seconds
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George Selgin on Repo Market Stress, Fed Balance Sheet Volatility, and a Standing Repo Facility

George Selgin is the director of the Cato Institute’s Center for Monetary and Financial Alternatives and is a returning guest to the Macro Musings podcast. He joins the show today as part of a two week special on the Fed and repo markets, as he helps us take a look at recent repo market stress from the Fed’s perspective. Specifically, David and George discuss the basics of the Fed’s balance sheet, the problematic nature of the Treasury General Account and foreign repo pools, and how George would tweak standing repo facility proposals to more directly address balance sheet volatility.    Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12162019/george-selgin-repo-market-stress-fed-balance-sheet-volatility-and-standing   George’s Twitter: @GeorgeSelgin George’s Cato profile: https://www.cato.org/people/george-selgin   Related Links:   *Stop the Presses! Or, How the Fed Can Avoid Reserve Shortages without Bulking-Up, Part 1* by George Selgin https://www.alt-m.org/2019/11/12/dtop-the-presses-or-how-the-fed-can-avoid-reserve-shortages-without-bulking-up-part-1/   *Stop the Presses! Or, How the Fed Can Avoid Reserve Shortages without Bulking-Up, Part 2* by George Selgin https://www.alt-m.org/2019/11/14/stop-the-presses-or-how-the-fed-can-avoid-reserve-shortages-without-bulking-up-part-2/   David’s Twitter thread on George’s proposal: https://twitter.com/DavidBeckworth/status/1202364853480017920   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
12/16/201958 minutes, 30 seconds
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RE-AIR: Robert Samuelson on Paul Volcker and the Great Inflation

Robert Samuelson is an economics columnist for the Washington Post and spent several decades working at Newsweek, where he wrote on various economic topics. Robert is the author of several books, including *The Good Life and Its Discontents: The American Dream in the Age of Entitlement* and *The Great Inflation and Its Aftermath: The Past and Future of American Affluence*. He joins the show today to talk about the latter and its implications for today. David and Robert go in-depth about the Great Inflation, as they discuss the disagreement within macroeconomics during the 60s and 70s, the history and significance of the period, and how Ronald Reagan and Paul Volcker sought to end the inflation.   Tributes to Paul Volcker:   *Remembering Paul Volcker, The Man Who Tamed Inflation* by Scott Sumner https://thehill.com/opinion/finance/473963-remembering-paul-volcker-the-man-who-tamed-inflation   *Paul Volcker’s Legacy* by Scott Sumner https://www.econlib.org/paul-volckers-legacy/   *How Paul Volcker Beat Inflation and Saved an Independent Fed* by Roger Lowenstein https://www.washingtonpost.com/business/economy/how-paul-volcker-beat-inflation-and-saved-an-independent-fed/2019/12/10/7e58d7ae-1b64-11ea-87f7-f2e91143c60d_story.html   *Paul Volcker Was Inflation’s Worst Enemy* by John Taylor https://www.wsj.com/articles/paul-volcker-was-inflations-worst-enemy-11575937617   *Paul A. Volcker, Fed Chairman Who Waged War on Inflation, Is Dead at 92* by Binyamin Appelbaum and Robert D. Hershey Jr. https://www.nytimes.com/2019/12/09/business/paul-a-volcker-dead.html   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12112019/robert-samuelson-paul-volcker-and-great-inflation   Robert’s Washington Post profile & bio: https://www.washingtonpost.com/people/robert-j-samuelson/?noredirect=on&utm_term=.6e300b47761d   Related Links:   *The Great Inflation and Its Aftermath: The Past and Future of American Affluence* by Robert J. Samuelson https://www.penguinrandomhouse.com/books/160295/the-great-inflation-and-its-aftermath-by-robert-j-samuelson/9780812980042/   *The Good Life and Its Discontents: The American Dream in the Age of Entitlement* by Robert J. Samuelson https://www.penguinrandomhouse.com/books/160294/the-good-life-and-its-discontents-by-robert-samuelson/9780679781523/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
12/11/201957 minutes, 48 seconds
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Jim Bianco on Negative Interest Rates, Low Inflation, and Yield Curve Expansion

Jim Bianco is the president of Bianco Research, a provider of data-driven insights into the global economy and financial markets, and is also a columnist for Bloomberg. Jim has 30-plus years of experience on Wall Street, and he joins the show today to talk about Fed policy, negative interest rates, and inflation. David and Jim also discuss the possibility of extending the yield curve, the Fed’s recent forays into the repo market, and what low interest rates mean for the economy moving forward.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12092019/jim-bianco-negative-interest-rates-low-inflation-and-yield-curve-expansion   Jim’s Twitter: @biancoresearch Jim’s Bloomberg profile: https://www.bloomberg.com/authors/ABvwE0aTOvg/jim-bianco   Related Links:   *A History of Interest Rates* by Dick Sylla and Sidney Homer https://www.wiley.com/en-us/A+History+of+Interest+Rates%2C+4th+Edition-p-9780471732839   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
12/9/201959 minutes, 24 seconds
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Claudia Sahm on the Sahm Rule and Using Big Data to Inform Policymaking

Claudia Sahm is the director of macroeconomic policy at the Washington Center for Equitable Growth, and was formerly at the Board of Governors as a section chief in the Consumer Community Affairs Division as well as serving on the staff macro forecast. Claudia specializes in macroeconomics and household finance, and she joins the show today to talk about some of her work. David and Claudia also discuss her experience working at the Federal Reserve Board of Governors, the conception of the Sahm Rule, and the importance of big data for economic research and policymaking.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12022019/claudia-sahm-sahm-rule-and-using-big-data-inform-policymaking   Claudia’s Twitter: @Claudia_Sahm Claudia’s Equitable Growth profile: https://equitablegrowth.org/people/claudia-sahm/   Related Links:   *Recession Ready: Fiscal Policies to Stabilize the American Economy* by the Brookings Institution https://www.brookings.edu/multi-chapter-report/recession-ready-fiscal-policies-to-stabilize-the-american-economy/   *Direct Stimulus Payments to Individuals* by Claudia Sahm https://www.brookings.edu/research/direct-stimulus-payments-to-individuals/   *Are We in a Recession? Experts Agree: Ask Claudia Sahm* by Kate Davidson https://www.wsj.com/articles/are-we-in-a-recession-experts-agree-ask-claudia-sahm-11572789602   *From Transactions Data to Economic Statistics: Constructing Real-Time, High-Frequency, Geographic Measures of Consumer Spending* by Aditya Aladangady, Shifrah Aron-Dine, Wendy Dunn, Laura Feiveson, Paul Lengermann, and Claudia Sahm https://www.nber.org/chapters/c14267   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
12/2/201957 minutes, 44 seconds
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Carola Binder on Political Pressure and the Twin Deficits of Central Banking

Carola Binder is an assistant professor of economics at Haverford College and is an associate editor of the Journal of Money, Credit, and Central Banking. Carola is also a member of the CEPR Research and Policy Network on Central Bank Communication, and joins the show today to discuss her work on central banking and populism. David and Carola also discuss the link between central bank credibility and popularity, the twin deficits of central banking, and why NGDP targeting could be an easy transition point from current inflation targeting regimes.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/11252019/carola-binder-political-pressure-and-twin-deficits-central-banking   Carola’s Twitter: @cconces Carola’s blog: https://carolabinder.blogspot.com/   Related Links:   *Political Pressure on Central Banks* by Carola Binder https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3244148   *Whose Expectations Augment the Phillips Curve?* by Carola Binder https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2789750   *Federal Reserve Communication and the Media* by Carola Binder https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2835574   *Comment on “Central Bank Accouncements: Big News for Little People” by Michael Lalma and Dmitri Vinogradov* by Carola Binder https://www.sciencedirect.com/science/article/abs/pii/S0304393219301461   *We Asked Fed Watchers to Rate the Fed’s Communications – Here’s What We Found* by Peter Olson and David Wessel https://www.brookings.edu/research/we-asked-fed-watchers-to-rate-the-feds-communications/   *The Optimal Degree of Commitment to an Intermediate Monetary Target* by Kenneth Rogoff https://scholar.harvard.edu/files/rogoff/files/51_qje85.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
11/25/201955 minutes, 23 seconds
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Binyamin Appelbaum on *The Economists’ Hour: False Prophets, Free Markets, and the Fracture of Society*

Binyamin Appelbaum is the lead writer on business and economics for the editorial board of The New York Times, and he was previously a Washington correspondent for The Times covering the Federal Reserve and other aspects of economic policy. Binyamin is also a returning guest to the show, and joins today to talk about his new book, *The Economists’ Hour: False Prophets, Free Markets, and the Fracture of Society*. David and Binyamin also discuss Milton Friedman’s influence on economic thought during the postwar era, the history of the emergence of supply side economics, and the consequences that have arisen from committing too strongly to free market principles.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/11182019/binyamin-appelbaum-economists%E2%80%99-hour-false-prophets-free-markets-and   Binyamin’s Twitter: @BCAppelbaum Binyamin’s New York Times profile: https://www.nytimes.com/by/binyamin-appelbaum   Related Links:   *The Economists’ Hour: False Prophets, Free Markets, and the Fracture of Society* by Binyamin Appelbaum https://www.littlebrown.com/titles/binyamin-appelbaum/the-economists-hour/9780316512329/   *Secrets of the Temple: How the Federal Reserve Runs the Country* by William Greider https://www.simonandschuster.com/books/Secrets-of-the-Temple/William-Greider/9780671675561   *More from Less: The Surprising Story of How We Learned to Prosper Using Fewer Resources - and What Happens Next* by Andrew McAfee https://www.simonandschuster.com/books/More-from-Less/Andrew-McAfee/9781982103576   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
11/18/201958 minutes, 6 seconds
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George Selgin on the Past, Present, and Future of a Real-time Payments System

George Selgin is the director of the Cato Institute’s Center for Monetary and Financial Alternatives and is a returning guest to the Macro Musings podcast. Today, George joins the show to talk about recent developments in the payment system. Specifically, George and David discuss the history of attempted payment system solutions, the challenges and costs facing the implementation of a real-time payment system, and why we should care about this issue today.      Transcript for the episode: https://www.mercatus.org/bridge/podcasts/11112019/george-selgin-past-present-and-future-real-time-payments-system   George’s Twitter: @GeorgeSelgin George’s Cato Institute profile: https://www.cato.org/people/george-selgin   Related Links:   *Federal Reserve Announces Plan to Develop a New Round-the-clock Real-time Payment and Settlement Service to Support Faster Payments* - Federal Reserve press release https://www.federalreserve.gov/newsevents/pressreleases/other20190805a.htm   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
11/11/201956 minutes, 52 seconds
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Henry Curr on Inflation, the Phillips Curve, and A New Monetarism

Henry Curr is the economics editor for The Economist magazine, and the author of a special report by the magazine on the phenomenon of low inflation now facing the global economy. Henry joins the show today to outline this report and the big questions surrounding low inflation. David and Curr also discuss the persistent low inflation of the present around the globe, why the Phillips Curve has broken down as a policy tool, and how technology may be causing inflation to miss its target set by central banks.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/11042019/henry-curr-inflation-phillips-curve-and-new-monetarism   Henry’s Twitter: @Henry_Curr Henry’s Economist profile: https://mediadirectory.economist.com/people/henry-curr/   Related Links:   *Inflation is Losing its Meaning as an Economic Indicator* A Special Report by Henry Curr (note that this link includes many of the various pieces discussed during the episode) https://www.economist.com/special-report/2019/10/10/inflation-is-losing-its-meaning-as-an-economic-indicator   *Alexa, How Much is it? Technology is Making Inflation Statistics an Unreliable Guide to the Economy* by Henry Curr https://www.economist.com/special-report/2019/10/10/technology-is-making-inflation-statistics-an-unreliable-guide-to-the-economy   *Inflation in Emerging and Developing Economies: Evolution, Drivers, and Policies* Edited by Jongrim Ha, M. Ayhan Kose, and Franziska Ohnsorge https://www.worldbank.org/en/research/publication/inflation-in-emerging-and-developing-economies   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
11/4/20191 hour, 3 minutes, 41 seconds
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Diego Zuluaga on Libra, Real-time Payments, and the Legacy of the Community Reinvestment Act

Diego Zuluaga is a policy analyst at the Cato Institute’s Center for Monetary and Financial Alternatives where he covers financial technology and consumer credit, and before joining Cato, Diego was head of financial services and tech policy at the Institute of Economic Affairs in London. He joins the show today to talk about his work within this policy area. David and Diego also discuss the future of cryptocurrencies, the fragmented nature of the US banking system, and the growing importance of fintech in our daily lives.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/10282019/diego-zuluaga-libra-real-time-payments-and-legacy-community-reinvestment   Diego’s Twitter: @DiegoZuluagaL Diego’s Cato Institute profile: https://www.cato.org/people/diego-zuluaga   Related Links:   *New York’s Bank: The National Monetary Commission and the Founding of the Fed* by George Selgin https://www.cato.org/publications/policy-analysis/new-yorks-bank-national-monetary-commission-founding-fed   *Fintech, Regulatory Arbitrage, and the Rise of Shadow Banks* by Greg Buchak, Gregor Matvos, Tomasz Piskorski, and Amit Seru https://www.nber.org/papers/w23288   *Of Libras and Zebras, Part One: What Are the True Financial Risks of the Facebook-Led Digital Currency? (Systemic Risk)* by Diego Zuluaga https://www.alt-m.org/2019/07/11/of-libras-and-zebras-part-one/   *Of Libras and Zebras, Part Two: What Are the True Financial Risks of the Facebook-Led Digital Currency? (Monopoly Risk)* by Diego Zuluaga https://www.alt-m.org/2019/07/16/of-libras-and-zebras-part-two/   *Of Libras and Zebras: What Are the True Financial Risks of the Facebook-Led Digital Curency? (Part III: National Security Risk)* by Diego Zuluaga https://www.cato.org/blog/libras-zebras-what-are-true-financial-risks-facebook-led-digital-currency-part-iii-national   *The Community Reinvestment Act in the Age of Fintech and Bank Competition* by Diego Zuluaga https://www.cato.org/publications/policy-analysis/community-reinvestment-act-age-fintech-bank-competition   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
10/28/201959 minutes, 22 seconds
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Frances Coppola on the Macroeconomics of Helicopter Drops

Frances Coppola is a former banker, financial writer, and an author of a recent book titled, *The Case for People’s Quantitative Easing*, and she joins the show today to talk about it.  David and Frances also discuss the overall potential effectiveness of helicopter drops, how they would be deployed during future recessions, and the criticisms and concerns that have been levied against them.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/10212019/frances-coppola-macroeconomics-helicopter-drops   Frances’s Twitter: @Frances_Coppola Frances’s website: http://www.coppolacomment.com/   Related Links:   *The Case for People’s Quantitative Easing* by Frances Coppola https://www.wiley.com/en-me/The+Case+For+People's+Quantitative+Easing-p-9781509531301   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
10/21/20191 hour, 1 minute, 29 seconds
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David Beckworth on the Facts, Fears, and Functionality of NGDP Level Targeting

In this special episode of Macro Musings, the roles are reversed, and David Beckworth joins guest host Cardiff Garcia, host of NPR’s “The Indicator from Planet Money”, to talk about his newest paper, *Facts, Fears, and Functionality of NGDP Level Targeting: A Guide to a Popular Framework for Monetary Policy*. David and Cardiff conduct a deep dive into the plumbing of this potential monetary regime, as they discuss some of the most the important questions surrounding it. Some of these questions include: what is nominal GDP level targeting, and how does it differ from the Fed's current inflation targeting framework? How does NGDP targeting deal with economic downturns and in a more effective manner than inflation targeting? How can this framework be properly communicated and explained to the public? David answers these questions and addresses further concerns and criticisms of NGDP targeting in this unique installment of Macro Musings.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/10182019/david-beckworth-facts-fears-and-functionality-ngdp-level-targeting   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/ David’s Mercatus profile: https://www.mercatus.org/scholars/david-beckworth   Cardiff’s Twitter: @CardiffGarcia Cardiff’s NPR profile: https://www.npr.org/people/567164716/cardiff-garcia   Related Links:   *Facts, Fears, and Functionality of Nominal GDP Level Targeting: A Guide to a Popular Framework for Monetary Policy* by David Beckworth https://www.mercatus.org/publications/monetary-policy/facts-fears-and-functionality-ngdp-level-targeting   *The Financial Stability Case for a Nominal GDP Target* by David Beckworth https://www.cato.org/cato-journal/springsummer-2019/financial-stability-case-nominal-gdp-target
10/16/20191 hour, 8 seconds
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Srinivas Thiruvadanthai on the Sectoral Financial Balance Approach to Macroeconomics

Srinivas Thiruvadanthai is a managing director and the director of research at the Jerome Levy Forecasting Center. Sri joins the show today to talk about the sectoral financial balance approach to macroeconomics as well as the safe asset supply challenge. David and Sri also discuss the fallacy of composition in macroeconomics, post-Keynesianism and how it differs from mainstream economic thought, and potential solutions to help ease the cost of being the banker to the world.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/10172019/srinivas-thiruvadanthai-sectoral-financial-balance-approach-macroeconomics   Sri’s Twitter: @teasri Sri’s JLFC profile: https://www.levyforecast.com/about-us/srinivas-thiruvadanthai/   Related Links:   *Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth* by Wynne Godley and Marc Lavoie http://dl4a.org/uploads/pdf/Monetary+Economics+-+Lavoie+Godley.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
10/14/201957 minutes, 43 seconds
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Bill Nelson on the Repo Market Stress, the Fed's Operating System, and the Prospects for a Standing Repo Facility

Bill Nelson is a chief economist at the Bank Policy Institute and was previously a deputy director of the Division of Monetary Affairs at the Federal Reserve Board, where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. Bill has written widely on the Fed’s operating system, and he joins the show today to talk about it, as well as the recent turmoil in money markets. David and Bill also discuss the possibility of the Fed moving back to a corridor system, the stigma surrounding banks using the discount window, and the story of recent supply and demand dislocation in repo markets.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/10072019/bill-nelson-repo-market-stress-feds-operating-system-and-prospects-standing   Related Links:   Link to supply and demand curves mentioned in the episode: http://macromarketmusings.blogspot.com/2019/09/the-repo-man-cometh.html   *Two Little-Noticed and Self-Inflicted Causes of the Fed’s Current Monetary Policy Implementation Predicament* by Bill Nelson https://bpi.com/two-little-noticed-and-self-inflicted-causes-of-the-feds-current-monetary-policy-implementation-predicament/   *Fed at a Crossroads* by Bill Nelson https://bpi.com/fed-at-a-crossroad/   *Bank Regulations and Turmoil in Repo Markets* by Francisco Covas & Bill Nelson https://bpi.com/bank-regulations-and-turmoil-in-repo-markets/   *What Just Happened in Money Markets, and Why it Matters* by Bill Nelson https://bpi.com/what-just-happened-in-money-markets-and-why-it-matters/   *Impending Money Market Volatility Prompts Warning Light for LCR Tune-Up* by Bill Nelson & Brett Waxman https://bpi.com/impending-money-market-volatility-prompts-warning-light-for-lcr-tune-up/   *Design Challenges for a Standing Repo Facility* by Bill Nelson https://bpi.com/design-challenges-for-a-standing-repo-facility/   *A Former Fed Insider Explains the Internal Debate over QE3* by Bill Nelson https://ftalphaville.ft.com/2018/02/16/2198845/guest-post-a-former-fed-insider-explains-the-internal-debate-over-qe3/   *Get Up Off The Floor* By Bill Nelson https://www.hoover.org/sites/default/files/research/docs/cochranepalermotaylor_currencies_ch9.pdf   *FOMC Go Home* by Bill Nelson https://bpi.com/fomc-go-home/   *Understanding the Fed’s Implementation Framework Debate* by Bill Nelson https://bpi.com/wp-content/uploads/2018/11/Understanding_the_Fed’s_implementation_framework_debate_Review05.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
10/7/201958 minutes, 21 seconds
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Jim Dorn on the History of Monetary Policy in Washington D.C. and its Future

Jim Dorn is the Vice President for Monetary Studies at the Cato Institute and is the director of Cato’s annual Monetary Policy Conference. Jim has written widely on Federal Reserve policy and monetary reform, and has also edited more than 10 books including *The Search for Stable Money* and *The Future of Money in the Information Age*.  He joins the show today to talk about the history of monetary policy in Washington D.C. over the past four decades as well as some of his own recent work. David and Jim also discuss the issues covered at the most recent Cato Institute monetary policy conference, the recent mystery of low inflation, and Jim’s idea of an optimal monetary policy regime.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/10022019/jim-dorn-history-monetary-policy-washington-dc-and-its-future   Jim’s Cato Institute profile: https://www.cato.org/people/james-dorn   Related Links:   Registration for the Cato Institute Monetary Policy Conference: https://www.cato.org/events/37th-annual-monetary-conference   *The Search for Stable Money: Essays on Monetary Reform* edited by James Dorn and Anna Schwartz https://www.amazon.com/Search-Stable-Money-Essays-Monetary/dp/0226158292   *The Future of Money in the Information Age* edited by James Dorn https://www.amazon.com/Future-Money-Information-Age/dp/1882577523   *the Political Economy of Inflation* by Fritz Machlup https://www.cato.org/sites/cato.org/files/serials/files/cato-journal/1983/5/cj3n1-3.pdf   *Has Monetarism Failed?* by Karl Brunner https://pdfs.semanticscholar.org/803d/c8632bec26142f4c6b54f9e692c6acf2fe72.pdf   *Should the Fed Be Constrained?* by Jeffrey Frankel https://www.cato.org/cato-journal/springsummer-2019/should-fed-be-constrained   *Improving the Monetary Regime: The Case for U.S. Digital Cash* by Michael Bordo and Andrew Levin https://www.cato.org/cato-journal/springsummer-2019/improving-monetary-regime-case-us-digital-cash   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
9/30/201956 minutes, 56 seconds
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Gregg Gelzinis on Reforming FSOC and How to Limit Future Financial Crises

Gregg Gelzinis is a policy analyst at the Center for American Progress where he focuses his work on financial institutions, financial markets, consumer finance policy, and financial regulation more broadly, and he joins the show today to talk about these issues. David and Gregg also discuss the Financial Stability Oversight Council’s (FSOC) inception, the tradeoffs between financial regulation and capital requirements, how the Fed could improve its stress testing.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/09232019/gregg-gelzinis-reforming-fsoc-and-how-limit-future-financial-crises   Gregg’s Twitter: @FinGregg Gregg’s Center for American Progress profile: https://www.americanprogress.org/about/staff/gelzinis-gregg/bio/   Related Links:   *Strengthening the Regulation and Oversight of Shadow Banks: Revitalizing the Financial Stability Oversight Council* by Gregg Gelzinis https://www.americanprogress.org/issues/economy/reports/2019/07/18/471564/strengthening-regulation-oversight-shadow-banks/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
9/23/20191 hour, 2 minutes, 34 seconds
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Soumaya Keynes on Trade, Dollar Dominance, and the Highlights of Jackson Hole

Soumaya Keynes is the US economics editor for The Economist magazine, and she is also the co-host of *Trade Talks*, a podcast on all things trade, including trade policy, trade wars, and the future of trade. Soumaya joins the show today to talk about the general topic of trade, but also some other recent economic developments. David and Soumaya also discuss dollar dominance, the effects of trade policy on economic uncertainty, and the highlights, and major themes of the Kansas City Fed’s Jackson Hole Economic Policy Symposium.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/09162019/soumaya-keynes-trade-dollar-dominance-and-highlights-jackson-hole   Soumaya’s Twitter: @SoumayaKeynes Soumaya’s website: https://soumayakeynes.com/ Soumaya’s Economist profile: https://mediadirectory.economist.com/people/soumaya-keynes/   Related Links:   *Soumaya Keynes Says Trump Trade Tweets Have Unleashed 'Bigger Uncertainty' Beyond Tariffs* https://www.mercatus.org/bridge/commentary/soumaya-keynes-says-trump-trade-tweets-have-unleashed-bigger-uncertainty-beyond   *Trade Talks Podcast* hosted by Soumaya Keynes and Chad P. Brown (PIIE) https://www.piie.com/trade-talks   *18th Street Singers Website* http://www.18thstreetsingers.com/   *Riders on the Storm* by Oscar Jorda and Alan M. Taylor https://www.kansascityfed.org/~/media/files/publicat/sympos/2019/20190806taylorjorda.pdf?la=en   *Discussion of “Riders on the Storm” by Oscar Jorda and Alan Taylor* by Kristin Forbes https://www.kansascityfed.org/~/media/files/publicat/sympos/2019/forbes_remarks_jh_2019_08_23.pdf?la=en   *Mind the Gap in Sovereign Debt Markets: The U.S. Treasury Basis and the Dollar Risk Factor* by Arvind Krishnamurthy and Hanno Lustig https://www.kansascityfed.org/~/media/files/publicat/sympos/2019/ak%20jacksonhole%20conference%20paper%20on%20sovereign%20debt%20markets%20krishnamurthylustig.pdf?la=en   *U.S. Monetary Policy and International Risk Spillovers* by Sebnem Kalemli-Ozcan https://www.kansascityfed.org/~/media/files/publicat/sympos/2019/jh_paper_final_sep6.pdf?la=en   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
9/16/201949 minutes, 28 seconds
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Alex Tabarrok on the Elements of Economic Growth and the Decline of Dynamism

Alex Tabarrok is a professor of economics at George Mason University and holds the Bartley J. Madden Chair in Economics at the Mercatus Center. Alex has written widely on long run economic growth and joins the show today to talk about it. David and Alex also discuss how capital relates to economic growth, the impact of regulation on dynamism, and the important distinction between “catch-up” and “cutting edge” growth.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/09092019/alex-tabarrok-elements-economic-growth-and-decline-dynamism   Alex’s Twitter: @ATabarrok Alex’s Mercatus profile: https://asp.mercatus.org/alexander-tabarrok Alex and Tyler’s blog: https://marginalrevolution.com/   Related Links:   *Modern Principles of Economics* by Alex Tabarrok and Tyler Cowen https://www.macmillanlearning.com/college/us/product/Loose-leaf--Version-for--Modern-Principles-of-Economics-4E--FlipIt-for-Survey-of-Economics-Six-Months-Access-4E-Online/p/131909872X   *Is Regulation to Blame for the Decline in American Entrepreneurship?* by Alex Tabarrok and Nathan Goldschlag https://academic.oup.com/economicpolicy/article/33/93/5/4833996   *Population Growth and Technological Change: One Million B.C. to 1990* by Michael Kremer https://www.ssc.wisc.edu/~walker/wp/wp-content/uploads/2012/01/kremer1993.pdf   *Why are the Prices so Damn High?* by Alex Tabarrok and Eric Helland https://www.mercatus.org/publications/healthcare/why-are-prices-so-damn-high   *The Value of Health and Longevity* by Kevin Murphy and Robert Topel https://www.nber.org/papers/w11405   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
9/9/201957 minutes, 48 seconds
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Judge Glock on the Riefler-Keynes Doctrine and Monetary Policy During the Great Depression

Judge Glock is an economic historian and a scholar at the Cicero Institute in San Francisco. Judge’s research is focused on the Great Depression, and he has recently published a paper on an important idea shaping Federal Reserve policy during this time; the Riefler-Keynes Doctrine.  He joins the show today to talk about this paper and the Great Depression.  David and Judge also discuss the key ideas behind the Riefler-Keynes Doctrine, how it differs from the Real Bills Doctrine, and how this relates to the Fed’s response to the Great Depression.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/09022019/judge-glock-riefler-keynes-doctrine-and-monetary-policy-during-great   Judge’s Twitter: @judgeglock Judge’s AIER profile: https://www.aier.org/staff/judge-glock   Related Links:   *The ‘Riefler-Keynes’ Doctrine and Federal Reserve Policy in the Great Depression* by Judge Glock https://read.dukeupress.edu/hope/article-abstract/51/2/297/137129/The-Riefler-Keynes-Doctrine-and-Federal-Reserve?redirectedFrom=fulltext   *Pressuring the Fed is No Surefire Electoral Solution, Says Economic Historian* by Frank Fuhrig https://www.mercatus.org/bridge/commentary/pressuring-fed-no-surefire-electoral-solution-says-economic-historian   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
9/2/201959 minutes, 53 seconds
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Thomas Hoenig on the Federal Reserve and the State of Banking in the US

Thomas Hoenig was vice-chair of the FDIC from 2012-2018 and in the 20 years prior to that he was also president of the Kansas City Federal Reserve Bank. Thomas is currently a distinguished senior fellow at the Mercatus Center at George Mason University where he focuses on the long-term impact of the politicization of financial services, as well as the effects of government granted privileges and market performance. He joins the show today to talk about his career and some of the current issues in banking. David and Thomas also assess the effectiveness of quantitative easing, the advantages and disadvantages of opening up the Fed’s balance sheet to the public, and the debate between establishing an orderly liquidation authority vs a bankruptcy code.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/08262019/thomas-hoenig-federal-reserve-and-state-banking-us   Thomas’ Twitter: @tom_hoenig Thomas’ Mercatus profile: https://www.mercatus.org/people/thomas-hoenig   Related Links:   *"Enormous" Pressure in Next Recession for Wider QE Purchases, Former FOMC Voter Predicts* by Frank Fuhrig  https://www.mercatus.org/bridge/commentary/%E2%80%9Cenormous%E2%80%9D-pressure-next-recession-wider-qe-purchases-former-fomc-voter-predicts   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/26/201959 minutes, 31 seconds
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Chris Crowe on Hedge Fund Perspectives and the Economic Implications of Brexit

Chris Crowe is head of economic research at Capula Investment Management, a London-based hedge fund, where he covers global economics, primarily the G10 countries plus China. Chris was previously UK economist at Barclays and prior to that he worked at the International Monetary Fund (IMF). He joins the show today to give us the perspective of a macroeconomist from inside a hedge fund on markets, Brexit, and other current events as well as some of his own research. David and Chris also discuss central bank independence, the overall economic impacts of Brexit, and the implications of Jay Powell’s testimony at the Humphrey Hawkins.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/08192019/chris-crowe-hedge-fund-perspectives-and-economic-implications-brexit   Related Links:   *Safe Asset Supply Failing to Meet Demand, Economist Crowe Says* by Frank Fuhrig https://www.mercatus.org/bridge/commentary/safe-asset-supply-failing-meet-demand-economist-crowe-says   *The International Impact of the Fed When the United states is a Banker to the World* by David Beckworth and Christopher Crowe https://www.hoover.org/sites/default/files/research/docs/rulesforinternationalmonetarystability-ch2.pdf   *Central Bank Independence and Transparency: Evolution and Effectiveness* by Christopher Crowe and Ellen Meade https://www.imf.org/external/pubs/ft/wp/2008/wp08119.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/19/201958 minutes, 1 second
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Aaron Klein on Real-time Payments and Financial Regulation

Aaron Klein is the director of the Center on Markets and Regulations at the Brookings Institution where, among other things, he focuses on financial regulations and real time payments. Aaron has written widely on real time payments and he joins the show today to talk about this issue, as they discuss the definition of real-time payments, how they could have a positive impact on limiting income inequality, and why the Fed is now interested in setting up its own real-time payments system.  David and Aaron also discuss banking reform after the recession, the shadow banking system, and why a lack of bank failures may be a worrying signal.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/08122019/aaron-klein-real-time-payments-and-financial-regulation   Aaron’s Twitter: @Aarondklein Aaron’s Brookings profile: https://www.brookings.edu/experts/aaron-klein/   Related Links:   *Is China’s New Payment System the Future?* by Aaron Klein https://www.brookings.edu/research/is-chinas-new-payment-system-the-future/   *Round One: What Role Should the Federal Reserve Play in Developing a Faster Payments System?* Symposium featuring James Angel, Aaron Klein and George Selgin https://www.mercatus.org/bridge/commentary/round-one-what-role-should-federal-reserve-play-developing-faster-payments-system   *Round Two: What Role Should the Federal Reserve Play in Developing a Faster Payments System?* Symposium featuring James Angel, Aaron Klein and George Selgin https://www.mercatus.org/bridge/commentary/round-two-what-role-should-federal-reserve-play-developing-faster-payments-system   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/12/201958 minutes, 31 seconds
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Bonus Episode – Watch Party for the Fed’s Historic Interest Rate Cut

In this special bonus episode of Macro Musings, David Beckworth joins Employ America and several other monetary policy enthusiasts on the day of the July FOMC meeting to discuss what would be an historic event –  the first interest rate cut executed by the Fed since December 2008, and the market reactions to this event.  In addition to their discussion of this eventual rate cut, David and the other Fed watchers also get a chance to talk about Judy Shelton’s nomination to the Fed Board of Governors, the significance and aftermath of the recent Humphrey Hawkins hearing, how the Fed’s decision to cut parallels the European Central Bank, and more.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/08072019/bonus-episode-watch-party-fed%E2%80%99s-historic-interest-rate-cut   Related Links:   Employ America’s home page: https://employamerica.org/   Sam Bell’s Twitter: @sam_a_bell Skanda Amarnath’s Twitter: @IrvingSwisher Sam & Skanda’s bios: https://employamerica.org/about/   Soumaya Keynes’ Twitter: @SoumayaKeynes Soumaya’s website: https://soumayakeynes.com/ Soumaya’s Economist profile: http://mediadirectory.economist.com/people/soumaya-keynes/   Ryan Avent’s Twitter: @ryanavent Ryan’s Economist profile: https://mediadirectory.economist.com/people/ryan-avent/   Nick Bunker’s Twitter: @nick_bunker Nick’s Indeed profile: https://www.hiringlab.org/author/nbunker/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/7/201937 minutes, 27 seconds
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Evan Koenig on the Fed’s Review Period, Monetary Regimes, and Yield Curves

Evan Koenig is a senior vice president and a principal policy advisor for the Federal Reserve Bank of Dallas where he has been since 1988. Evan joins the show today to talk about his time at the Fed and some of his research. David and Evan also discuss where the Federal Reserve’s review is going in the next six months, Evan’s preferred version of nominal GDP targeting, and how important the yield curve is relative to other credit indicators.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/08052019/evan-koenig-feds-review-period-monetary-regimes-and-yield-curves   Evan’s Dallas Fed bio: https://www.dallasfed.org/research/economists/koenig.aspx Evan’s research profile: https://ideas.repec.org/f/pko435.html   Related Links:   *Like a Good Neighbor: Monetary Policy, Financial Stability, and the Distribution of Risk* by Evan Koenig https://www.ijcb.org/journal/ijcb13q2a3.pdf   *Credit Indicators as Predictors of Economic Activity: A Real-Time VAR Analysis* by N Kundan Kishor and Evan Koenig https://econpapers.repec.org/article/wlyjmoncb/v_3a46_3ay_3a2014_3ai_3a2-3_3ap_3a545-564.htm   *Methods of Policy Accommodation at the Interest-Rate Lower Bound* by Michael Woodford https://www.kansascityfed.org/publicat/sympos/2012/mw.pdf?sm=jh083112-4   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
8/5/201952 minutes, 37 seconds
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Ulrich Bindseil on Central Bank Operating Systems

Ulirch Bindseil is currently the director general of the Directorate General Market Operations at the European Central Bank (ECB), and in November he will become the director general of Market Infrastructure and Payments at the ECB. Ulrich has written widely on central banking operative frameworks, including a textbook, and is considered one of the world’s leading authorities on operating systems. He joins the show today to talk about these frameworks and much more. David and Ulrich also discuss the debate between floor and corridor systems, the principles for evaluating operating frameworks, and the big lessons central bankers have learned from the past decade.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/07292019/ulrich-bindseil-central-bank-operating-systems   Ulrich’s ECB paper archive: https://www.ecb.europa.eu/pub/research/authors/profiles/ulrich-bindseil.en.html Ulrich’s ResearchGate profile: https://www.researchgate.net/profile/Ulrich_Bindseil   Related Links:   *Evaluating Monetary Policy Frameworks* by Ulrich Bindseil https://www.kansascityfed.org/~/media/files/publicat/sympos/2016/econsymposium-bindseil-paper2.pdf?la=en   *Central Banking Before 1800: A Rehabilitation* by Ulrich Bindseil https://global.oup.com/academic/product/central-banking-before-1800-9780198849995?prevNumResPerPage=60&lang=en&cc=gb   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/29/201959 minutes, 48 seconds
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Tyler Cowen on the Culture of Big Business in the United States

Tyler Cowen is a professor of economics at George Mason University and is the co-author of the popular economics blog, Marginal Revolution. Tyler has published widely in economics and is the author of numerous books including his 2017 book, *The Complacent Class: The Self-Defeating Quest for the American Dream.* As a returning guest to the show, however, he joins today to talk about his newest book, *Big Business: A Love Letter to an American Anti-Hero.* David and Tyler also discuss many aspects of big business, including its common critiques, the fallacy of the monopoly in America, and how income inequality has become tied to the firm.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/07222019/tyler-cowen-culture-big-business-united-states   Tyler’s Twitter: @tylercowen Tyler’s Mercatus profile: https://www.mercatus.org/tyler-cowen Tyler and Alex’s blog: https://marginalrevolution.com/   Related Links:   *Big Business: A Love Letter to an American Anti-Hero* by Tyler Cowen https://us.macmillan.com/books/9781250110541   *The Complacent Class: The Self-Defeating Quest for the American Dream* by Tyler Cowen https://read.macmillan.com/lp/the-complacent-class/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/22/201958 minutes, 41 seconds
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Joe Gagnon on Currency Manipulation, Trade Imbalances, and Libra

Joe Gagnon is a senior fellow at the Peterson Institute for International Economics where he has been since September 2009. Previously, Joe worked for the Federal Reserve Board of Governors as a senior economist and the associate director of both the Division of International Finance and the Division of Monetary Affairs, and he has also served at the US Treasury Department.  Joe is a returning guest to Macro Musings and joins the show today to talk about the growing interest among U.S. politicians in managing the currency to help facilitate trade imbalances. David and Joe also discuss the policy implications of trade imbalances, the new Libra currency, and how to us countervailing currency intervention to combat currency manipulation.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/07152019/currency-manipulation-trade-imbalances-and-libra   Joe’s Twitter: @GagnonMacro Joe’s PIIE profile: https://www.piie.com/experts/senior-research-staff/joseph-e-gagnon?author_id=653   Related Links:   *Currency Conflict and Trade Policy: A New Strategy for the United States* by Joe Gagnon and Fred Bergsten https://www.piie.com/bookstore/currency-conflict-and-trade-policy-new-strategy-united-states   *The Financial Market Effects of the Federal Reserve’s Large-Scale Asset Purchases* by Joe Gagnon, Matthew Raskin, Julie Remache, and Brian Sack https://www.ijcb.org/journal/ijcb11q1a1.htm   *A Plan for Economic Patriotism* proposal by Elizabeth Warren https://medium.com/@teamwarren/a-plan-for-economic-patriotism-13b879f4cfc7   *Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold?* by Ethan Ilzetzki, Carmen Reinhart, and Kenneth Rogoff* https://www.nber.org/papers/w23134   *Did France Cause the Great Depression* by Douglas Irwin https://www.nber.org/papers/w16350   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/15/201953 minutes, 45 seconds
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Heather Boushey on Income Inequality and Automatic Stabilizers

Heather Boushey is the executive director at the Washington Center for Equitable Growth, a think tank founded to accelerate cutting edge analysis into whether and how structural changes in the US economy affect economic growth. Heather recently co-edited a book titled, *Recession Ready: Fiscal Policies to Stabilize the American Economy,* and she joins the show today to discuss it. David and Heather also discuss income inequality, automatic stabilizers for fiscal policy, and how monetary policy intersects with these issues.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/07082019/income-inequality-and-automatic-stabilizers   Heather’s Twitter: @HBoushey Heather’s Equitable Growth profile: https://equitablegrowth.org/people/heather-boushey/   Related Links:   Equitable Growth’s funded research page: https://equitablegrowth.org/elevating-research/funded-research/   *Recession Ready: Fiscal Policies to Stabilize the American Economy* by Heather Boushey, Ryan Nunn, and Jay Shambaugh https://www.brookings.edu/wp-content/uploads/2019/05/ES_THP_AutomaticStabilizers_FullBook_web_20190513.pdf   *Public Infrastructure Investments, Productivity and Welfare in Fixed Geographic Areas* by Andrew Haughwout https://www.newyorkfed.org/research/staff_reports/sr104.html   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth
7/8/201956 minutes
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Jeffry Frieden on the Rise of Populism, Labor Mobility, and the Eurozone

Jeffry Frieden is a professor of government at Harvard University where he specializes in the politics of international monetary and financial relations. Jeff is the author of many articles and books including *Currency Politics: The Political Economy of Exchange Rate Policy* and *Lost Decades: The Making of America’s Debt Crisis and the Long Recovery*. He joins the show today to talk about some of his work. David and Jeff also explore what has led to the recent rise in populism across the nation, the difficulty of interregional labor mobility and its economic effects, and current issues within the Eurozone.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/07012019/rise-populism-labor-mobility-and-eurozone   Jeff’s Twitter: @jafrieden Jeff’s Harvard profile: https://scholar.harvard.edu/jfrieden   Related Links:   *Currency Politics: The Political Economy of Exchange Rate Policy* by Jeffry Frieden https://press.princeton.edu/titles/10364.html   *Lost Decades: The Making of America’s Debt Crisis and the Long Recovery* by Jeffry Frieden https://scholar.harvard.edu/jfrieden/publications/lost-decades-making-americas-debt-crisis-and-long-recovery   *Populism in Place: The Economic Geography of the Globalization Backlash* by J. Lawrence Broz, Jeffry Frieden, and Stephen Weymouth https://scholar.harvard.edu/files/jfrieden/files/populism_in_place_v1.3_0.pdf   *Wall Street is Desperate for Wonks Who Can Explain the Rise of Populism* by Craig Torres https://www.bloomberg.com/news/articles/2019-06-04/wall-street-is-desperate-for-wonks-who-can-explain-the-rise-of-populism   *Why Has Regional Income Convergence in the U.S. Declined?* by Peter Ganong and Daniel Shoag https://www.nber.org/papers/w23609   *Going to Extremes: Politics After Financial Crises, 1870-2014* by Manuel Funke, Moritz Schularick, and Christoph Trebesch https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2688897   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth