04 - Cardiff Garcia on Economics Journalism, Safe Assets, and Inflation

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

25 Marras 201955min

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

18 Marras 201958min

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 Marras 201956min

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

4 Marras 20191h 3min

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

28 Loka 201959min

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

21 Loka 20191h 1min

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

16 Loka 20191h

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

14 Loka 201957min