Macro Musings with David Beckworth

Paul Tucker is a 33-year veteran of the Bank of England where he served as both a member and deputy governor of the Monetary Policy Committee.  Currently, Paul is a senior fellow at Harvard and a chair at the Systemic Risk Council. He has also recently authored a book, *Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State* and joins the show today to discuss talk about it. David and Paul also discuss central bank independence and justifications for the existence of a regulatory state as well as Paul’s “principles for delegation” criteria.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/03252019/paul-tucker-central-bank-independence-and-unelected-power   Paul’s website: http://paultucker.me/ Paul’s Harvard University profile: https://ces.fas.harvard.edu/people/001970-paul-tucker   Related Links:   *Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State* by Paul Tucker https://press.princeton.edu/titles/11240.html   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth Chapters:  00:00:00-Intro 00:00:22-Skip Intro 01:02:26-Outro

25 Mars 20191h 2min

James Broughel is a senior research fellow at the Mercatus Center and an adjunct professor of law at George Mason University Law School. James specializes in state and federal regulatory procedures, cost-benefit analysis, and economic growth. He joins the show today to talk about a recent symposium he hosted on the social discount rate; what it is, its uses, and the controversy surrounding how to measure it. David and James also discuss cost-benefit analysis in the regulatory world and why the social discount rate matters for policy.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/03182019/discounting-future   James’ Twitter: @JamesBroughel James’ Mercatus profile: https://www.mercatus.org/james-broughel   Related Links:   *The Social Rate of Time Preference and the Social Discount Rate* by Mark Moore and Adam Vining https://www.mercatus.org/system/files/moore_and_vining_-_mercatus_research_-_a_social_rate_of_time_preference_approach_to_social_discount_rate_-_v1.pdf   *The Appropriate Measure of the Social Discount Rate and Its Role in the Analysis of Policies with Long-Run Consequences* by David Burgess https://www.mercatus.org/system/files/burgess_-_mercatus_research_-_the_appropriate_measure_of_the_social_discount_rate_and_its_role_in_the_analysis_of_policies_with_long-run_consequences_-_v1.pdf   *The Unsettled Matter of Discounting the Future* by James Broughel https://www.mercatus.org/publications/regulation/social-discount-rate/unsettled-matter-discounting-future   *Equity or Efficiency? The Battle for the Soul of Benefit-Cost Analysis* by James Broughel https://www.mercatus.org/publications/regulatory-analysis/equity-or-efficiency-battle-soul-benefit-cost-analysis   Amazon link to James’ former band *Levy*: https://www.amazon.com/Levy/e/B001LHXCE2/ref=dp_byline_cont_music_1   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

18 Mars 20191h

Ryan Avent is an economics columnist with The Economist magazine and is a previous guest of Macro Musings. He joins the show today to talk about some of his recent columns including work on hyperinflation, the Green New Deal, and Fed policy. David and Ryan also discuss the growing popularity of Modern Monetary Theory, the Fed’s dovish change in direction, and why hyperinflation is so devastating to a nation’s economy.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/03112019/hyperinflation-and-mmt   Ryan’s Twitter: @ryanavent Ryan’s Economist profile: http://mediadirectory.economist.com/people/ryan-avent/   Related Links:   *Hyperinflations Can End Quickly, Given the Right Sort of Regime Change* by Ryan Avent https://www.economist.com/finance-and-economics/2019/01/31/hyperinflations-can-end-quickly-given-the-right-sort-of-regime-change   *Taking the Fed at its Word: Direct Estimation of Central Bank Objectives using Text Analytics* by Adam Shapiro & Daniel Wilson https://www.frbsf.org/economic-research/files/wp2019-02.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

11 Mars 201955min

Michael Strain is the director of economic policy studies at the American Enterprise Institute. Previously, Michael worked in the Center for Economic Studies at the U.S. Census Bureau and in the Macroeconomics Research Group at the Federal Reserve Bank of New York. He joins the show today to talk about recent developments in U.S. economic policy and some of his work on that topic. David and Michael also discuss the consequences of rising populism, MMT’s impact on tax policy, and the issues Americans should be most worried about.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/03042019/populism-mmt-and-billionaires   Michael’s Twitter: @MichaelRStrain Michael’s AEI profile: https://www.aei.org/scholar/michael-r-strain/   Related Links:   *Economic Shocks and Clinging* by Michael Strain and Stan Veuger https://ideas.repec.org/p/aei/rpaper/1004842.html   *Wealth Inequality in the United States Since 1913: Evidence from Capitalized Income Tax Data* by Emmanuel Saez and Gabriel Zucman https://gabriel-zucman.eu/files/SaezZucman2014.pdf   *Going to Extremes, Politics After Financial Crisis: 1870-2014* by Manuel Funke, Moritz Schularick, and Christoph Trebesch https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2688897   *Modern Monetary Theory is a Joke That’s Not Funny* by Michael Strain https://www.bloomberg.com/opinion/articles/2019-01-17/modern-monetary-theory-would-sink-u-s-in-debt   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

4 Mars 20191h

George Selgin is the director of the Cato Institute’s Center for Monetary and Financial Alternatives, professor emeritus of economics at the University of Georgia, and a returning guest to show.  For this special live episode, George joins Macro Musings to talk about his new book, *Floored: How a Misguided Fed Experiment Deepened and Prolonged the Great Recession.* David and George also discuss the liquidity coverage ratio, the Fed’s transition from a corridor to a floor system, and the arguments for and against such an operating system.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/02252019/floors-and-corridors   George’s Twitter: @GeorgeSelgin George’s Cato Institute profile: https://www.cato.org/people/george-selgin   Related Links:   *The Fed Marches On* by George Selgin https://www.alt-m.org/2019/01/31/the-fed-marches-on/   *Balance Sheet News* blog post by Stephen Williamson http://newmonetarism.blogspot.com/2019/02/balance-sheet-news_21.html   David Beckworth’s Twitter thread on the Fed’s decision to stick with a floor system: https://twitter.com/DavidBeckworth/status/1098956723501576192   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

25 Feb 20191h 13min

Peter Stella is the managing director of Stellar Consulting and was formerly an IMF official where he led the central banking and monetary and foreign exchange divisions. Peter has researched and written extensively on safe assets, collateral, and central banking operations, and he joins the show today to discuss this work.  David and Peter also discuss the Fed’s large scale asset purchases, money and payment systems in advanced economies, and why the U.S. Treasury should start issuing bills to the Fed.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/02182019/peter-stella-debt-safe-assets-and-central-bank-operations   Peter’s Voxeu profile: https://voxeu.org/users/peterstella0 Peter’s Research Gate archive: https://www.researchgate.net/profile/Peter_Stella   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

18 Feb 20191h 1min

Rohan Grey is a legal scholar and the research director of the Digital Fiat Currency Institute. He joins the show today to make the case for digital legal tender. David and Rohan also discuss privacy issues related to digital currency, getting the public onboard with a digital currency proposal, modern monetary theory, and how it is different than mainstream economics.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/02112019/future-digital-fiat-currency    Rohan’s Twitter: @rohangrey Rohan’s Cornell profile: https://www.lawschool.cornell.edu/admissions/degrees/graduate-legal-studies/JSD-Student-Profiles-Rohan-Grey.cfm   Related Links:   *Central Bank Digital Currency and the Future of Monetary Policy* by Michael Bordo and Andrew Levin https://www.nber.org/papers/w23711   *Winds of Change: The Case for New Digital Currency* by Christine Lagarde https://www.imf.org/en/News/Articles/2018/11/13/sp111418-winds-of-change-the-case-for-new-digital-currency   *The Case for Digital Legal Tender: The Macroeconomic Policy Implications of Digital Fiat Currency* by Rohan Grey and Jonathan Dharmapalan https://www.ecurrency.net/static/resources/201802/TheMacroeconomicImplicationsOfDigitalFiatCurrencyEVersion.pdf   *Banking in a Digital Fiat Currency Regime* by Rohan Grey https://custom.cvent.com/20310C03166C4C11B1AA63B0D6300264/files/Event/6230e8320cad4d97a45b8dcdc6c44200/aaeeabdc5cee41f5a8ad0a7e869faed8.pdf   *Mobile Finance in Developing Countries: Macroeconomic Implications and Potential* by Rohan Grey http://www.binzagr-institute.org/wp-content/uploads/2017/06/WP-116.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

11 Feb 201959min

Donald Kohn is a senior fellow at the Brookings Institution and currently serves as an external member of the Financial Policy Committee at the Bank of England. Donald is also a 40-year veteran of the Federal Reserve System, serving previously as a governor and then as vice-chair of the Board of Governors from 2002 to 2010. He joins the show today to talk about his journey through the Federal Reserve System in addition to some of his recent work. David and Donald also discuss Fed policy during the ‘80s, expanding the types of assets the Fed could purchase, and the challenges it faces today.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/02012019/burns-powell   Donald’s Brookings profile: https://www.brookings.edu/experts/donald-kohn/ Donald’s Federal Reserve History biography: https://www.federalreservehistory.org/people/donald_l_kohn   Related Links:   *The Anguish of Central Banking* by Arthur Burns http://www.perjacobsson.org/lectures/1979.pdf   *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   *Keeping At It: The Quest for Sound Money and Good Government* by Paul Volcker https://www.publicaffairsbooks.com/titles/paul-volcker/keeping-at-it/9781541788299/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

4 Feb 201959min