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

Ashoka Mody is a professor of international economic policy at Princeton University and formerly worked at the IMF and the World Bank. He joins the show today to discuss his new book, *EuroTragedy: A Drama in Nine Acts*. David and Ashoka also delve deep into the history of the Euro, as they discuss its complicated political origins and why its creation may have been a mistake. Ashoka’s Twitter: @AshokaMody Ashoka’s Princeton profile: https://scholar.princeton.edu/amody/home Related Links: *EuroTragedy: A Drama in Nine Acts* by Ashoka Mody https://global.oup.com/academic/product/eurotragedy-9780199351381?cc=us&lang=en& *EMU and International Conflict* by Martin Feldstein https://www.foreignaffairs.com/articles/europe/1997-11-01/emu-and-international-conflict David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

19 Juli 20181h 1min

Monica de Bolle is a senior fellow at the Peterson Institute for International Economics and an associate professor at Johns Hopkins University. Monica is published widely on the subject of Latin American economies, and she joins the show today to explain some of the recent financial and economic developments in Argentina and Venezuela. David and Monica also analyze the political atmosphere and policy environment that led to Argentina’s current economic hardships and discuss where the country might be if they had not pursued such policies. Monica’s Twitter: @bollemdb Monica’s PIIE profile: https://piie.com/experts/senior-research-staff/monica-de-bolle Related Links: *Argentina: Back to the Brink* by Monica de Bolle https://piie.com/blogs/realtime-economic-issues-watch/argentina-back-brink David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

16 Juli 201857min

Mark Copelovitch is an associate professor of political science at the University of Wisconsin-Madison and studies the politics of international trade, money, and finance. He joins the show today to discuss the politics of the global recession and the Eurozone Crisis. David and Mark dive deep into these topics, as they examine how policymakers failed during the Great Recession, and how effects of the Eurozone crisis varied across Europe. They also discuss whether the recent Italian elections can be viewed as a consequence of Eurozone failures. Mark’s Twitter: @mcopelov Mark’s University of Wisconsin-Madison profile: https://polisci.wisc.edu/people/faculty/mark-copelovitch Related Links: *This Time Should Have Been Different: The Causes and Consequences of Macroeconomic Policy Failure in the Great Recession* by Mark Copelovitch https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3059991 *The Monetary Policy Origins of the Eurozone Crisis* by David Beckworth https://www.mercatus.org/system/files/Beckworth-Eurozone-Crisis-v1.pdf *A Plan to Save the Euro* by Jeffry Frieden https://voxeu.org/article/plan-save-euro *Going to Extremes: Politics After Financial Crises, 1870–2014* by Manuel Funke, Moritz Schularick & Christoph Trebesch https://www.sciencedirect.com/science/article/pii/S0014292116300587 David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

9 Juli 20181h 5min

Dan Griswold is a research fellow and co-director for the Program on the American Economy and Globalization at the Mercatus Center. He is a nationally recognized expert on trade and immigration and is a previous guest on Macro Musings. He joins the show today to discuss his recent policy brief, *The Benefits of Immigration: Addressing the Key Myths* in addition to some of his other work on the issue. Some of the topics Dan and David explore include immigration’s positive effects on economic growth, the importance of immigrants in maintaining demographic stability, and other false narratives surrounding their perceived fiscal impact. Dan’s Twitter: @DanielGriswold Dan’s Mercatus profile: https://www.mercatus.org/daniel-griswold Related Links: *The Benefits of Immigration: Addressing the Key Myths* by Dan Griswold https://www.mercatus.org/publications/benefits-of-immigration-key-myths *The Economic and Fiscal Consequences of Immigration* by the National Academies of Sciences https://www.nap.edu/catalog/23550/the-economic-and-fiscal-consequences-of-immigration *The Integration of Immigrants into American Society* by the National Academies of Sciences https://www.nap.edu/catalog/21746/the-integration-of-immigrants-into-american-society *Reforming the U.S. Immigration System to Promote Growth* by Dan Griswold https://www.mercatus.org/publications/reforming-us-immigration-system-economic-growth *Immigrants and Conservatives are Cut from the Same Cloth* by Dan Griswold https://townhall.com/columnists/danielgriswold/2018/04/25/immigrants-and-conservatives-are-cut-from-the-same-cloth-n2474499 *What the June Rate Hikes Mean for the Future of the Fed* by David Beckworth https://www.mercatus.org/bridge/podcasts/06262018/what-june-rate-hikes-mean-future-fed?utm_source=soundcloud&utm_medium=referral&utm_campaign=macromusings David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

2 Juli 201858min

Larry Ball is a professor and department chair of economics at Johns Hopkins University. He is published widely in the field of macroeconomics and joins the show today to discuss his new book, *The Fed and Lehman Brothers: Setting the Record Straight on a Financial Disaster* and its implications for potential future crises. David and Larry also dive deep into the events leading up to the Lehman collapse, the effects it had on the broader economy, and the lessons that can be learned from the fallout ten years later. Larry’s Johns Hopkins profile: http://econ.jhu.edu/directory/laurence-m-ball/ Larry’s NBER archive: http://www.nber.org/people/laurence_ball Related Links: *The Fed and Lehman Brothers: Setting the Record Straight on a Financial Disaster* by Laurence Ball https://www.cambridge.org/core/books/fed-and-lehman-brothers/14BE6C2AD579DC4782EC27F2A6AF2FA6 David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

25 Juni 201858min

Nick Timiraos is a national economics correspondent for the Wall Street Journal and covers topics relating to the Federal Reserve. He also covered the housing bust and the government’s response to the mortgage crisis during the Great Recession as well as the government-sponsored enterprises, Fannie Mae and Freddie Mac. Nick joins the show today to discuss the long and controversial history surrounding the two GSEs on the 10 year anniversary of their conservatorship. David and Nick also discuss the evolution of the U.S. housing market as well as the advent and characteristics of securitization. Nick’s Twitter: @NickTimiraos Nick’s Wall Street Journal profile: https://www.wsj.com/news/author/5585 Related Links: *The U.S. Mortgage Market: Chart Edition* by David Beckworth (includes the market share chart referenced at 25:20 during the episode.) http://macromarketmusings.blogspot.com/2018/05/the-us-mortgage-market-chart-edition.html David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

18 Juni 20181h 4min

Brian Blackstone is a Switzerland bureau chief for the Wall Street Journal and previously covered the European Central Bank from the Wall Street Journal’s Frankfurt office as well as the Federal Reserve during the financial crisis. He joins the show today to talk about the Swiss referendum on sovereign money in addition to his insights on the European Central Bank. David and Brian also discuss the effects of an enlarged balance sheet at the Swiss National Bank, whether they should be the only national entity in control of money creation, and how the Swiss economy has fared since the Great Recession. Brian’s Twitter: @Blackstonebrian Brian’s WSJ profile: https://www.wsj.com/news/author/7515 Related Links: *How Switzerland Lost a Currency Battle, but Won the War* by Brian Blackstone and Pat Minczeski https://www.wsj.com/articles/how-switzerland-lost-a-currency-battle-but-won-the-war-1524216601 *Why Italy is Flirting with Euro Exit and Spain Isn’t* by Greg Ip https://www.wsj.com/articles/why-italy-is-flirting-with-euro-exit-and-spain-isnt-1528040526 David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

11 Juni 201855min

Christine McDaniel is a senior research fellow at the Mercatus Center with the Program on the American Economy and Globalization. Christine previously held several positions within the U.S. government including deputy assistant secretary at the Treasury Department and senior trade economist in the White House Council of Economic Advisors. She joins the show today to talk about the issues of intellectual property and trade. David and Christine also discuss the importance of reviving the Trans-Pacific Partnership, problems with patent systems across the globe, and the history and current scale of intellectual property theft. Christine’s Twitter: @christinemcdan Christine’s Mercatus profile: https://www.mercatus.org/christine-mcdaniel David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

4 Juni 201852min