02 - John Taylor on the Taylor Rule, the 2008 Crisis, and Fed Reform

Julia Coronado is the president and founder of Macro Policy Perspectives, a Wall Street research firm. Previously, she was a chief economist for Graham Capital Management and a senior economist at BNP Paribas. Julia also served on the Federal Reserve Board of Governors for over a decade, and she joins the show today to talk about the Fed’s latest rate hikes and other recent economic developments. David and Julia also discuss the Fed’s recent financial stability report, why inflation has been persistently low, and ways to improve communications between the Fed and the market.   Julia’s Twitter: @jc_econ Julia’s Macropolicy Perspectives profile: https://www.macropolicyperspectives.com/about/   Related Links:    Transcript for the episode: https://www.mercatus.org/bridge/podcasts/01072019/micro-foundations-macro-questions(link forthcoming)   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

7 Tammi 201952min

Brian Goff is the distinguished professor of economics at the Gordon Ford College of Business at Western Kentucky University. He is the author of the Econosports blog at Forbes and most recently the author of a new book titled, *Sports Economics Uncut*. Brian joins the show today to talk about the economics behind professional and collegiate sports across the United States. David and Brian also discuss stadium subsidies, the relationship between salary caps and dynasties, and why there may need to be serious reform at the collegiate sports level.   Brian’s blog: https://www.forbes.com/sites/briangoff/#393eb9d01647 Brian’s WKU profile: https://www.wku.edu/economics/staff/brian_goff   Related Links:   *Sports Economics Uncut* by Brian Goff https://www.e-elgar.com/shop/sports-economics-uncut   *eBooks link: https://www.ebooks.com/96329982/sports-economics-uncut/goff-brian/   *Football Still Americans’ Favorite Sport to Watch* by Jim Norman https://news.gallup.com/poll/224864/football-americans-favorite-sport-watch.aspx   *Happy 10th Birthday to the Most-Subsidized NFL Stadium in America* by Anne Philpot and Michael Farren https://www.mercatus.org/bridge/commentary/happy-10th-birthday-most-subsidized-nfl-stadium-america   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

31 Joulu 20181h 1min

Felix Salmon is a financial journalist at Axios and the host of the Slate Money podcast. In this special holiday episode, Felix joins the show to discuss the economics of charitable giving and one of his other favorite topics, sovereign debt. David and Felix also discuss debt contract innovations, effective altruism, and ways to improve charitable giving across the U.S. and the globe.   Felix’s Twitter: @felixsalmon Felix’s website: http://www.felixsalmon.com/   Related Links:   Axios Edge newsletter: https://www.axios.com/newsletters/axios-edge Recipe for Disaster: The Formula that Killed Wall Street by Felix Salmon https://www.wired.com/2009/02/wp-quant/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

24 Joulu 20181h 1min

Matt Mitchell is the director and senior research fellow at the Equity Initiative at the Mercatus Center. He joins the show today to talk about rent seeking and how it affects long term economic growth and prosperity. David and Matt also discuss regulatory capture, the rise of patent trolls, and the economics of public choice theory.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12172018/macroeconomics-rent-seeking   Matt’s Twitter: @MattMitchell80 Matt’s Mercatus profile: https://www.mercatus.org/matthew-mitchell   Related Links:   *Why Nations Fail: The Origins of Power, Prosperity, and Poverty* by Daron Acemoglu and James Robinson https://scholar.harvard.edu/jrobinson/publications/why-nations-fail-origins-power-prosperity-and-poverty   *The Political Economy of the Rent-Seeking Society* by Anne Krueger https://www.jstor.org/stable/1808883?seq=1#page_scan_tab_contents   *Entrepreneurship: Production, Unproductive, and Destructive* by William Baumol https://www.jstor.org/stable/2937617   *Uncontestable Favoritism* by Matt Mitchell https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3210953   *40 Years of Research on Rent Seeking* by Roger Congleton, Arye Hillman, and Kai Konrad https://www.springer.com/us/book/9783540791881   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

17 Joulu 201856min

Josh Galper is the managing principal of Finadium, an independent consultancy in capital markets with unique expertise in securities, finance, collateral, and derivatives. He joins the show today to talk about money markets, overnight interest rates, and some of the big issues in this area. David and Josh also discuss the Lehman Brothers collapse, the “Narrow Bank,” and what we should know about key interest rates; namely the repo rate, LIBOR, interest on excess reserves rate, and SOFR.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12072018/plumbing-monetary-policy   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   *Second Report of the Alternative Reference Rates Committee* by the New York Fed https://www.newyorkfed.org/medialibrary/Microsites/arrc/files/2018/ARRC-Second-report   *The SOFR Transition: Benchmarks, Futures, and P&L* by Finadium https://finadium.com/finadium-report-desc/sofr-transition-benchmarks-futures-profit-loss/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

10 Joulu 201850min

Victoria Guida is a reporter for Politico where she covers monetary policy and financial regulation, including extensive coverage of the Federal Reserve, the FDIC, the Treasury Department, and Congress. She joins the show today to talk about some of the big developments in monetary policy and financial regulation over the past few years and what kind of policy changes may be on the horizon. David and Victoria also discuss the Financial CHOICE Act, the accomplishments and failures of the current lame duck Congress, and what to expect from the new appointees at the Fed.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12032018/victoria-guida-politics-monetary-policy   Victoria’s Twitter: @vtg2 Victoria’s Politico profile: https://www.politico.com/staff/victoria-guida   Related Links:   *Big Banks, Feeling Unloved in Trump’s Washington, Shake Up Lobbying* by Zachary Warmbrodt https://www.politico.com/story/2018/07/09/banks-lobbying-donald-trump-669706   *A Bank’s Activities, Not Its Assets, Should Decide Regulatory Status* by Thomas Hoenig https://www.americanbanker.com/opinion/a-banks-activities-not-its-assets-should-decide-regulatory-status   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

3 Joulu 201859min

Neil Irwin is a senior economics correspondent for the New York Times and was formerly a columnist at the Washington Post. He is the author of the book, *The Alchemist: Three Central Bankers and a World on Fire*, and he joins the show today to talk about his work as an economics correspondent. David and Neil also discuss the invisible recession of 2016, how monopsony power affects labor market wage setting, and the political fallout from the Great Recession.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/11262018/economic-journalism-recession-economics-and-international-monetary-policies   Neil’s Twitter: @Neil_Irwin Neil’s New York Times profile: https://www.nytimes.com/by/neil-irwin   Related Links:   *The Alchemists: Three Central Bankers and a World on Fire* by Neil Irwin https://www.amazon.com/Alchemists-Three-Central-Bankers-World/dp/0143124994   *The Policymakers Saved the Financial System. And America Never Forgave Them* by Neil Irwin https://www.nytimes.com/2018/09/12/upshot/financial-crisis-recession-recovery.html   *The Most Important Least Noticed Economic Event of the Decade* by Neil Irwin https://www.nytimes.com/2018/09/29/upshot/mini-recession-2016-little-known-big-impact.html   *Are Superstar Firms and Amazon Effects Reshaping the Economy?* by Neil Irwin https://www.nytimes.com/2018/08/25/upshot/big-corporations-influence-economy-central-bank.html   *Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold?* https://www.nber.org/papers/w23134.pdf   *What Recovery? The Case for Continued Expansionary Policy at the Fed* by J.W. Mason http://rooseveltinstitute.org/what-recovery/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

26 Marras 201856min

Adam Ozimek is a senior economist at Moody’s Analytics where he covers U.S. labor markets and demographics while actively blogging and tweeting about a wide range economic issues. He joins the show today to discuss mistakes in Fed policy and demographics. David and Adam also discuss the role demand played in the Great Recession, the link between population growth and inflation, and why the economy is experiencing weak productivity growth.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/11192018/adam-ozimek-inflation-migration-and-productivity   Adam’s Twitter: @ModeledBehavior Adam’s blog: https://www.economy.com/dismal/analysis/datapoints Adam’s website: https://www.adamozimek.com   Related Links:   If you would like access to *The Fed’s Mistake*, you can email Adam at Adam.Ozimek@moodys.com to request the paper.   *Population Growth and Inflation* by Adam Ozimek https://www.economy.com/getlocal?q=a7c139c0-2b8c-4abf-9b65-bd8b11392939&app=eccafile   *Declining Business Dynamism in the United States: A Look at States and Metros* by Ian Hathaway and Robert Litan https://www.brookings.edu/wp-content/uploads/2016/06/declining_business_dynamism_hathaway_litan.pdf   *The role of Entrepreneurship in US Job Creation and Economic Dynamism* by Ryan Decker et. al http://econweb.umd.edu/~haltiwan/JEP_DHJM.pdf   *The Migration Accelerator: Labor Mobility, Housing, and Aggregate Demand* by Greg Howard http://economics.mit.edu/files/12236   *Aging and the Productivity Puzzle* by Mark Zandi, Adam Ozimek, and Dante DeAntonio https://www.economy.com/dismal/analysis/commentary/300374/Aging-and-the-Productivity-Puzzle/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

19 Marras 201859min