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
7 Okt 201958min
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
30 Sep 201956min
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
23 Sep 20191h 2min
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
16 Sep 201949min
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 Sep 201957min
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
2 Sep 201959min
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
26 Aug 201959min
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
19 Aug 201958min
