Macro Musings with David Beckworth
Hosted by David Beckworth of the Mercatus Center, Macro Musings pulls back the curtain on the important macroeconomic issues of the past, present, and future.
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James Bullard on FAIT, Nominal GDP Targeting, and the Fed’s Upcoming Framework Review
07/22/2024
James Bullard on FAIT, Nominal GDP Targeting, and the Fed’s Upcoming Framework Review
James Bullard was the president and CEO of the Federal Reserve Bank of St. Louis from 2008 to 2023, and he is currently the dean of the Mitchell E. Daniels Jr. School of Business at Purdue University. James is also a previous guest of the show, and he rejoins David on Macro Musings to talk about his time at the Fed, FAIT, and the upcoming Fed framework review. Specifically, James and David also discuss how to improve the FOMC’s economic reporting, the case for implementing nominal GDP targeting, the future of R-star, and much more. Transcript for this week’s James’s St. Louis Fed James’s Purdue University David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: - A presentation by James Bullard at the 34th Annual National Association for Business Economics (NABE) Economic Policy Conference by Yan Bai, Jose-Victor Rios-Rull, and Kjetil Storesletten Timestamps: (00:00:00) – Intro (00:03:10) – Defining the St. Louis Fed and Bullard’s Fed Tenure (00:09:58) – Comparing FAIT and Nominal GDP Targeting (00:15:55) – Assessing the Current FAIT Framework (00:25:37) – Evaluating the Recent V-Shaped Recovery (00:29:28) – What to Expect from the Upcoming Fed Framework Review (00:33:31) – Improving the FOMC’s Economic Reporting (00:37:46) – The Case for Nominal GDP Targeting (00:50:24) – The Future of R-Star (00:53:52) – Outro
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Josh Lipsky on Financial Statecraft, Cross-border Payments, and the Global Status of the Dollar
07/15/2024
Josh Lipsky on Financial Statecraft, Cross-border Payments, and the Global Status of the Dollar
Josh Lipsky is the senior director of the Atlantic Council’s GeoEconomics Center. Josh joins David on Macro Musings to talk about the tools of financial statecraft, how they have evolved over the years, and their implications for digital currencies moving forward. Specifically, David and Josh also discuss how financial statecraft would be applied to a possible conflict with China, the current state of the cross-border payments system, the future of wholesale CBDC in the US, and much more. Transcript for this week’s Josh’s Twitter: Josh’s Atlantic Council David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: by Charlie Vest, Agatha Kratz, Juliana Bouchaud, Josh Lipsky, Kimberly Donovan, Charles Lichfield, and Niels Graham. by Jordan Bleicher and Josh Lipsky by Timothy Massad Timestamps: (00:00:00) – Intro (00:04:02) – The Russia Sanctions as an Example of Financial Statecraft (00:10:14) – The Financing of the Russia-Ukraine War (00:14:08) – The Delicacy of Legal Precedents and the REPO Act (00:19:10) – Breaking Down the Tools of Financial Statecraft (00:22:08) – Applying Financial Statecraft to a Possible China Conflict (00:28:52) – Cross-border Payments and the Global Status of the US Dollar (00:34:05) – Breaking Down the Development and Geopolitical Importance of mBridge (00:38:34) – The Future and Importance of Wholesale CBDC in the US (00:43:28) – Private Sector Alternatives to CBDCs (00:45:05) – Where is the CBDC Conversation Headed? (00:49:25) – Closing Thoughts: The 80th Anniversary of Bretton Woods and the Future of Dollar Dominance (00:52:48) – Outro
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Steven Kelly on the Financial Stability Implications of the Discount Window
07/08/2024
Steven Kelly on the Financial Stability Implications of the Discount Window
Steven Kelly is the Associate Director of Research at the Yale Program on Financial Stability and is also a returning guest to the podcast. Steven rejoins David on Macro Musings to talk about the financial stability implications of the discount window. David and Steven also discuss the issues with FHLBs, how to fix the challenge of reporting requirements, restarting the term auction facility and committed liquidity facilities, and much more. Transcript for this week’s Steven’s Twitter: Steven’s blog: David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: - a panel discussion featuring Steven Kelly, Bill Nelson, Susan McLaughlin, and Luc Laeven at the Federal Reserve Bank of Atlanta’s 2024 Financial Markets Conference by Steven Kelly - an initiative by the Yale Program on Financial Stability by Bill Nelson Timestamps: (00:00:00) – Intro (00:01:02) – The Yale Program on Financial Stability and Steven’s Role (00:07:04) – Building a Resilient Regulatory Framework (00:12:45) – Addressing Issues in the Discount Window (00:21:37) – Responding to Criticism of Liquidity Regulations (00:27:22) – Fixing the Challenge of Reporting Requirements (00:33:29) – Restarting the Term Auction Facility and Committed Liquidity Facilities (00:37:24) – Addressing the Issue with FHLBs (00:45:26) – Additional Thoughts from the Atlanta Fed Conference Panel (00:50:59) – Could Increased Use of the Discount Window Cause a Shift in the Fed’s Operating System? (00:54:44) – Outro
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Ernie Tedeschi on Full Employment, the US Safe Harbor Premium, and the Current Path of R-Star
07/01/2024
Ernie Tedeschi on Full Employment, the US Safe Harbor Premium, and the Current Path of R-Star
Ernie Tedeschi is the Director of Economics at the Budget Lab and is a visiting fellow at the Psaros Center for Financial Markets and Policy. Recently, Ernie was a chief economist at the White House’s Council of Economic Advisors, and he is also a returning guest to the podcast. Ernie rejoins Macro Musings to talk about the CEA and some of his recent work on the political risks to the US safe harbor premium and R-star. David and Ernie also discuss the benefits and healing properties of a high employment economy, Ernie’s favorite measures of the labor market, the current and past trends in the path of R-Star, and more. Transcript for this week’s Ernie’s Twitter: Ernie’s Budget Lab David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: by Ernie Tedeschi by Ernie Tedeschi by the White House Council of Economic Advisers by Nick Timiraos by Craig Torres Timestamps: (00:00:00) – Intro (00:01:49) – Ernie’s Experience at the CEA (00:09:15) – The Benefits and Healing Properties of a High Employment Economy (00:15:28) – Ernie’s Favorite Measures of the Labor Market (00:20:17) – The Broader Debate Surrounding Labor Market Measures (00:24:07) – The Basics of a US Safe Harbor Premium (00:28:56) – Political Risk vs. Exorbitant Privilege (00:33:46) – Debt Ceiling Crises as a Political Risk Scenario (00:37:01) – Fiscal Dominance as a Political Risk Scenario (00:43:25) – Outlining the Distinction Between Different R-Stars (00:48:39) – Past and Current Trends in the Path of R-Stars (00:54:46) – Assessing the Sources of High Productivity (00:58:22) – Outro
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Jeffrey Lacker on Fed Governance and Learning from the Recent Inflation Surge
06/24/2024
Jeffrey Lacker on Fed Governance and Learning from the Recent Inflation Surge
Jeffrey Lacker is a senior affiliated scholar at the Mercatus Center, but has also previously worked at the Federal Reserve Bank of Richmond from 1989 to 2017, serving as its president from 2004 to 2017. Jeff is also a returning guest to podcast, and he rejoins Macro Musings to talk about Fed governance issues and the lessons learned from the recent inflation surge. Specifically, David and Jeffrey also discuss the issue of maximum employment, how the Fed could reform its governance structure, what the central bank should address during the next framework review, and more. Transcript for this week’s Jeffrey’s Mercatus Jeffrey’s Jeffrey’s Richmond Fed David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: by Jeffrey Lacker Presentation by Jeffrey Lacker at the 2024 UC San Diego Economics Roundtable Lecture Series by Andrew Levin and Christina Parajon Skinner by Dan Katz and Stephen Miran by Michael Belongia and Peter Ireland by Peter Conti-Brown by Macro Musings Timestamps: (00:00:00) – Intro (00:04:35) – Jeffrey’s View on “Monetary Federalism” (00:10:01) – Reducing the Number of Regional Fed Banks (00:13:11) – Addressing Peter Conti-Brown’s Proposals for Fed Governance Reform (00:18:23) – Addressing Andy Levin and Christina Skinner’s Proposals for Fed Governance Reform (00:23:07) – Altering the Fed’s Responsibilities as a Bank Regulator (00:29:21) – What Lessons Should the Federal Reserve Learn from the Recent Inflation Surge? (00:36:14) – The Issue of Maximum Employment (00:46:38) – Evaluating the Fed’s Response to the Recent Inflation Episode (00:50:45) – What Should the Fed Be Addressing During the Next Framework Review? (00:55:01) – Outro
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Mickey Levy on How to Reboot Fed Policy Ahead of its Upcoming Framework Review
06/17/2024
Mickey Levy on How to Reboot Fed Policy Ahead of its Upcoming Framework Review
Mickey Levy is Chief Economist for the Americas and Asia for Berenberg Capital Markets, a Wall Street veteran, and a longstanding member of the Shadow Open Market Committee. He and his co-author, Charles Plosser, also have a new paper out titled, *The Fed’s Strategic Approach to Monetary Policy Needs a Reboot.* Mickey joins David on Macro Musings to discuss this paper and its implications for the upcoming Federal Reserve framework review. David and Mickey also discuss the impact and importance of a flat Phillips curve, the Fed’s policy mistakes in the wake of its new flexible average inflation targeting (FAIT) framework, recommendations for how the central bank should approach the next framework review, and much more. Transcript for this week’s Mickey’s Twitter: Mickey’s David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: by Mickey Levy and Charles Plosser Timestamps: (00:00:00) – Intro (00:01:50) – Mickey Levy’s Career Path and Takeaways from the Most Recent Hoover Monetary Policy Conference (00:07:24) – What Shaped the First Framework Review? (00:11:56) – The Fed’s Addition of “Symmetric” Inflation (00:16:32) – Price Level Drift, Deflationary Fears, and Inflation Expectations at the Fed (00:23:33) – The Impact and Importance of a Flat Phillips Curve (00:27:34) – Breaking Down the Elements of FAIT and the Fed’s Policy Mistakes (00:42:11) – Recommendations for the Fed’s Upcoming Framework Review (00:57:54) – Outro
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Lars Christensen on AI and its Impact on Monetary Policy and the Broader Field of Economics
06/10/2024
Lars Christensen on AI and its Impact on Monetary Policy and the Broader Field of Economics
Lars Christensen is a founding member of the market monetarist tradition, an entrepreneur in the AI space, and is also a returning guest to Macro Musings. Lars rejoins the podcast to talk about AI and its implications for the economy and for monetary policy. David and Lars also discuss the basics and implications of dynamic pricing, AI’s growing use within econometric analysis, how AI will impact the Fed and its policymaking, and much more. Transcript for this week’s Lars’s Twitter: Lars’s David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: by Lars Christensen by George Selgin Timestamps: (00:00:00) – Intro (00:01:16) – Lars’s Move from Macro to AI (00:08:02) – The Basics and Implications of Dynamic Pricing (00:16:17) – Using AI for Econometric Analysis (00:23:54) – The Implications of AI for the Economics Field (00:35:45) – How Will AI Impact the Federal Reserve and its Policymaking (00:38:55) – Deflation as a Response to an AI Driven Productivity Shock (00:52:08) – Outro Photo Credit: Nordnet Bank
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Ryan Bourne on *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy*
06/03/2024
Ryan Bourne on *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy*
Ryan Bourne is the R. Evan Scharf Chair for Public Understanding of Economic at the Cato Institute, and he is also the editor and contributor to a new book titled, *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy.* Ryan joins Macro Musings to talk about this new book, and specifically, the history and functionality of rent and price controls, the basics of dynamic pricing, the root causes of inflation, and a lot more. Transcript for this week’s Ryan’s Twitter: Ryan’s Cato David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: by Ryan Bourne et al. by Leonard Read by Robert Schuettinger and Eamonn Butler by Carola Binder Timestamps: (00:00:00) – Intro (00:01:05) – The Background Motivation for “The War on Prices* (00:06:32) – The Definition and Importance of Prices (00:12:41) – The Parable of “I, Pencil” (00:18:39) – Rationing on Quality or Quantity: Rent Control (00:26:39) – The World War II Experience with Price Controls (00:32:58) – Price and Wage Controls During the Nixon Administration (00:35:48) – The Effects of a Minimum Wage (00:38:38) – The Basics of Dynamic Pricing (00:44:03) – Defining Inflation and Establishing its Sources (00:56:08) – Was the Recent Inflation Surge Actually Optimal? (00:59:51) – Outro
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George Selgin on Fed Master Accounts, Central Bank Independence, and the Fed’s Balance Sheet
05/27/2024
George Selgin on Fed Master Accounts, Central Bank Independence, and the Fed’s Balance Sheet
George Selgin is a senior fellow and director emeritus of the Center for Monetary and Financial Alternatives at the Cato Institute. George is also a frequent guest of the podcast, and he rejoins Macro Musings to talk about some of the recent developments in the monetary and fiscal policy space. Specifically, David and George discuss recent updates regarding Fed master accounts, the problematic aspects of the Fed’s balance sheet, why a second Trump term would threaten central bank independence, and much more. Transcript for this week’s George’s Twitter: George’s Cato David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: by George Selgin Court documents from the Wyoming District Court by the Federal Reserve Bank of New York by Andrew Restuccia, Nick Timiraos, and Alex Leary by Saleha Mohsin, Jennfier Jacobs, and Nancy Cook by George Selgin by George Selgin by Macro Musings Timestamps: (00:01:36) – Intro (00:06:26) – Updates on Fed Master Accounts and the Custodia Case (00:17:57) – Problematic Aspects of the Fed’s Balance Sheet (00:22:50) – The Importance of the Overnight Unsecured Interbank Lending Market (00:34:26) – Responding to the Jared Bernstein Incident (00:46:33) – Donald Trump, Central Bank Independence, and Dollar Dominance (00:56:54) – Outro
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Roberto Perli on the Past, Present, and Future of the Fed’s Balance Sheet
05/20/2024
Roberto Perli on the Past, Present, and Future of the Fed’s Balance Sheet
Roberto Perli is the manager of the System Open Market Account (SOMA) and a senior leader in the New York Fed’s Markets Group. In his role, Roberto is responsible for implementing monetary policy at the direction of the Federal Open Market Committee (FOMC). Roberto is also a returning guest to the podcast, and he rejoins Macro Musings to talk about a recent speech he made titled, *Balance Sheet Reduction: Progress to Date and a Look Ahead.* Specifically, David and Roberto discuss the Fed’s recent balance sheet activities, the basics and functionality of the overnight reverse repo facility, the importance of slowing down the Fed’s balance sheet runoff, and much more. Transcript for this week’s Roberto’s NY Fed Roberto’s Twitter: David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: - Remarks by Roberto Perli at the 2024 Annual Primary Dealer Meeting, Federal Reserve Bank of New York Timestamps: (00:00:00) – Intro (00:04:49) – Breaking Down the Role of SOMA Manager (00:08:43) – Recapping the Fed’s Balance Sheet Activities (00:11:04) – How to Think About Quantitative Tightening (00:13:19) – Breaking Down the Overnight Reverse Repo Facility (00:20:42) – Slowing Down the Runoff and the Future of QT (00:26:48) – How to Determine the Critical Level of Reserves (00:33:03) – The Structural Demand for Bank Reserves Over Time (00:38:55) – The Advantages of the Floor Operating System (00:47:49) – Reserve Supply Focus Moving Forward (00:49:44) – Outro
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Mary Daly on Fed Policy, the Economic Impacts of AI, and the Future of the Fed’s Framework
05/13/2024
Mary Daly on Fed Policy, the Economic Impacts of AI, and the Future of the Fed’s Framework
Mary Daly is the president and CEO of the Federal Reserve Bank of San Francisco, a voting member of the Federal Open Market Committee (FOMC), and is also a 28-year veteran of the Federal Reserve System. President Daly joins David for this special live episode of Macro Musings to talk about her non-linear career path to the world of monetary policy, the long-term economic impacts of AI, the future outlook for Fed policy and the Fed’s framework, and much more. Transcript for this week’s Mary’s Twitter: Mary’s San Francisco Fed David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: by David Beckworth Timestamps: (00:00:00) – Intro (00:01:30) – Mary Daly’s Background (00:06:09) – Recent Inflationary Trends and the Future of Fed Policy (00:15:39) – The Trajectory of R-Star Over the Medium to Long-Run (00:19:06) – The Long-Term Economic Impacts of AI (00:29:51) – Expectations for the Upcoming Fed Framework Review (00:33:35) – Prospects for Nominal GDP Targeting at the Fed (00:36:58) – Fed Policymaking During an Election Year (00:38:16) – Audience Q&A Period (01:01:09) – Outro
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Dan Katz and Stephen Miran on Reforming the Federal Reserve’s Governance
05/06/2024
Dan Katz and Stephen Miran on Reforming the Federal Reserve’s Governance
Dan Katz and Stephen Miran are former senior advisors for the US Treasury Department and are currently adjunct fellows at the Manhattan Institute. Dan and Stephen have also written a new paper titled, *Reform the Federal Reserve’s Governance to Deliver Better Monetary Outcomes,* and they join Macro Musings to talk about this paper and the proposed reforms for the Federal Reserve outlined in it. Specifically, Dan, Steve, and David discuss the ever-expanding reach of the Fed, its role as debt manager and bank regulator, the current issue with the central bank’s personnel, and a lot more. Transcript for this week’s Stephen’s Twitter: Stephen’s Manhattan Institute Dan’s Twitter: Dan’s Manhattan Institute David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings Check out our Macro Musings Related Links: by Dan Katz and Stephen Miran Timestamps: (00:00:00) – Intro (00:04:20) – The Fed’s Issue of Picking Winners and Losers (00:09:17) – The Fed’s Role as Bank Regulator (00:12:53) – The Ever-Expanding Reach of the Fed (00:17:50) – The Fed as a Debt Manager (00:23:33) – What Should the Fed Do in a Zero Lower Bound Environment (00:27:26) – Personnel is Policy: The Issue with Fed Personnel (00:29:55) – Options for Personnel Reform at the Fed (00:38:22) – Making the Fed President Selection Process More Robust (00:47:28) – The Nature of Debate at the Fed (00:50:53) – The Scope for Change at the Fed (00:53:21) – Outro
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BONUS: Richard Clarida on His Musical Interests and *Time No Changes*
05/01/2024
BONUS: Richard Clarida on His Musical Interests and *Time No Changes*
Richard Clarida is a professor of economics at Columbia University, a managing director at PIMCO, and was most recently the Vice Chair of the Federal Reserve Board of Governors. Richard rejoins David for this special bonus segment to talk about his interest in music and his first studio album, *Time No Changes.* Richard’s Federal Reserve Richard’s PIMCO David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings ! Check out our Macro Musings Related Links: by Richard Clarida by Macro Musings
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Richard Clarida on FAIT, R-Star, and the Future of the Fed’s Framework
04/29/2024
Richard Clarida on FAIT, R-Star, and the Future of the Fed’s Framework
Richard Clarida is a well-known academic and policymaker who most recently was the Vice Chair of the Federal Reserve Board of Governors. Richard is currently a professor of economics at Columbia university and is also a managing director at PIMCO. Richard joins David on Macro Musings to talk about his academic and policy work, as well as his outlook for FAIT, the Fed’s framework review, the future of R-Star, and more. Transcript for this week’s Richard’s Federal Reserve Richard’s PIMCO David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings ! Check out our Macro Musings Related Links: by Richard Clarida and Mark Gertler by Richard Clarida, Jordi Gali, and Mark Gertler by Richard Clarida, Jordi Gali, and Mark Gertler by Richard Clarida, Jordi Gali, and Mark Gertler Timestamps: (00:00:00) – Intro (00:03:04) – Richard Clarida’s Background (00:11:37) – Bridging the Gap Between Academic Economics and Real-World Markets (00:21:50) – Richard’s Journey Through the Policy World (00:36:29) – Constructing the Fed’s FAIT Framework (00:40:53) – Evaluating the Results of the FAIT Framework (00:54:17) – The Future of the Fed’s Framework (00:57:08) – The Future of R-Star (01:00:50) – Outro
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Saleha Mohsin on *Paper Soldiers: How the Weaponization of the Dollar Changed the World Order*
04/22/2024
Saleha Mohsin on *Paper Soldiers: How the Weaponization of the Dollar Changed the World Order*
Saleha Mohsin is a senior Washington correspondent for Bloomberg News, where she covers policy, politics, and power in Washington, DC. Saleha is also the author of a new book titled, *Paper Soldiers: How the Weaponization of the Dollar Changed the World Order,* and she joins David on Macro Musings to talk about it. Specifically, David and Saleha also discuss the intelligence and enforcement tools of the US Treasury, the basics and importance of SWIFT, the effectiveness of US sanctions, and a lot more. Transcript for this week’s Saleha’s Twitter: Saleha’s Bloomberg David Beckworth’s Twitter: Follow us on Twitter: Check out our new AI chatbot: the ! Join the new Macro Musings ! Join the Macro Musings ! Check out our Macro Musings Related Links: by Saleha Mohsin hosted by Saleha Mohsin Timestamps: (00:00:00) – Intro (00:03:43) – The Weaponization of the Dollar on the Global Stage (00:08:55) – The Intelligence and Enforcement Tools of the US Treasury Department (00:13:10) – Breaking Down SWIFT and Its Importance (00:18:27) – Sanctioning Russian Oligarchs (00:22:42) – The Importance and Significance of Robert Rubin (00:25:29) – The George W. Bush of the Treasury Department (00:37:42) – Breaking Down the Joint Comprehensive Plan of Action (00:41:06) – The Trump Administration, China, and the Rise of Populism (00:45:30) – Evaluating the Effectiveness of the Russia Sanctions (00:51:18) – Threats to the US in the Future (00:52:48) – Outro
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Josh Hendrickson on the Treasury Standard and Global Dollar Dominance
04/15/2024
Josh Hendrickson on the Treasury Standard and Global Dollar Dominance
Josh Hendrickson is the chair of the department of economics at the University of Mississippi and is the author of a new paper that looks at dollar dominance through the broad historical perspective of what is called the “Treasury Standard.” Josh is also a returning guest to Macro Musings, and he rejoins the podcast to talk about this paper and the Treasury Standard concept. David and Josh also discuss the state’s monopoly over money, the path to global dollar dominance, the path dependency of the dollar system, and a lot more. Transcript for this week’s Josh’s Twitter: Josh’s Ole Miss Josh’s joint David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings ! Check out our Macro Musings Related Links: by Joshua Hendrickson by Josh Hendrickson by Marijn Bolhuis, Judd Cramer, Karl Schulz, and Lawrence Summers by Armen Alchian and Benjamin Klein
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Julia Coronado on Productivity, Commercial Real Estate, and the Fed’s Soft Landing
04/08/2024
Julia Coronado on Productivity, Commercial Real Estate, and the Fed’s Soft Landing
Julia Coronado is the president and founder of MacroPolicy Perspectives, a Wall Street research firm. Julia was also recently the president of the National Association of Business Economists, and she has served as an economist on Wall Street and at the Federal Reserve Board of Governors. Julia is also a returning guest to Macro Musings, and she rejoins the podcast to talk about the prospects of a productivity surge, the Fed’s journey to a soft landing, the state of the commercial real estate market, and more. Transcript for this week’s Julia’s Twitter: Julia’s MacroPolicy Perspectives David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings ! Check out our Macro Musings
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Isabel Schnabel on the ECB and its New Operational Framework
04/01/2024
Isabel Schnabel on the ECB and its New Operational Framework
Isabel Schnabel is a Member of the Executive Board of the European Central Bank, and she joins David on Macro Musings to talk about the ECB and its new operational framework. Specifically, David and Isabel also discuss the structure, operations, and monetary policy instruments of the ECB, the history of its operating framework, the details surrounding its new regime, and more. Transcript for this week's Isabel’s Twitter: Isabel’s ECB David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings ! Check out our Macro Musings Related Links: - Speech by Isabel Schnabel at the Money Market Contact Group meeting by Isabel Schnabel - Speech by Isabel Schnabel at an event organized by Columbia University and SGH Macro Advisors by Isabel Schnabel
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Andrew Levin and Christina Parajon Skinner on *Central Bank Undersight: Assessing the Fed’s Accountability to Congress*
03/25/2024
Andrew Levin and Christina Parajon Skinner on *Central Bank Undersight: Assessing the Fed’s Accountability to Congress*
Andy Levin is a professor of economics at Dartmouth University and a former senior staffer at the Federal Reserve Board of Governors. Christina Parajon Skinner is a legal scholar at the University of Pennsylvania and formerly was legal counsel to the Bank of England. Andy and Christina have co-authored a new article titled, *Central Bank Undersight: Assessing the Fed’s Accountability to Congress,* and they rejoin David on Macro Musings to talk about it. Specifically, they discuss the Fed’s power under a constitutional authority, the three sources of Fed undersight, proposals for reform, and more. Transcript for this week’s Andrew’s Twitter: Andrew’s Dartmouth Christina’s Twitter: Christina’s UPenn David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings ! Check out our Macro Musings Related Links: * by Andrew Levin and Christina Parajon Skinner by Macro Musings
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Anat Admati on the US Banking System and the Basel III Endgame
03/18/2024
Anat Admati on the US Banking System and the Basel III Endgame
Anat Admati is a professor of finance and economics at Stanford University and is the coauthor of the 2013 book, *The Bankers’ New Clothes: What’s Wrong With Banking and What to Do About It.* Anat is also a returning guest to Macro Musings and she rejoins the podcast to talk about the 2024 expanded edition of the same book, as well as the most recent developments in banking. David and Anat also discuss the effectiveness of post-financial crisis regulations, the design and impact of Basel III Endgame, the fallout from the most recent regional banking crisis, and a lot more. Transcript for this week’s Anat’s Twitter: Anat’s Stanford David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings ! Check out our Macro Musings Related Links: by Anat Admati and Martin Hellwig by Anat Admati and Martin Hellwig by Macro Musings by Macro Musings by Jed Rakoff
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Steven Kamin and Mark Sobel on the Current State of Dollar Dominance
03/11/2024
Steven Kamin and Mark Sobel on the Current State of Dollar Dominance
Steven Kamin is a senior fellow at the American Enterprise Institute, was previously the director of the Division of International Finance at the Federal Reserve Board, and is a returning guest to the podcast. Mark Sobel is the US Chairman at the Official Monetary and Financial Institutions Forum, and he previously served at the US Department of the Treasury for nearly four decades, including as Deputy Assistant Secretary for International Monetary and Financial Policy from 2000 to early 2015. Also, from 2015 through 2018, Mark served as a US representative at the IMF. Steven and Mark join Macro Musings to talk about dollar dominance and whether or not it is here to stay. Specifically, Steven and Mark also discuss current debates surrounding dollarization, the threat that China poses to dollar dominance, the weaponization of the dollar in the global economy, and a lot more. Transcript for this week’s Steven’s Twitter: Steven’s AEI Mark’s Twitter: Mark’s CSIS David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings ! Check out our Macro Musings Related Links: by Steven Kamin and Mark Sobel by Macro Musings by Michael Dooley, David Folkerts-Landau, and Peter Garber
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Peter Williams on Interest Rates, Term Premium, and the Importance of Inflation Expectations
03/04/2024
Peter Williams on Interest Rates, Term Premium, and the Importance of Inflation Expectations
Peter Williams is a managing director of macroeconomic research at 22V Research and was formerly at the IMF and the World Bank. Peter joins David on Macro Musings to provide a market perspective on interest rates, Treasury markets, and monetary policy. Specifically, David and Peter discuss the dos and don’ts of estimating term premiums, the importance and future of R-star, the usefulness of inflation expectations, and a lot more. Transcript for this week’s Peter's Twitter: Peter’s LinkedIn Peter’s 22V David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings Check out our Macro Musings Related Links: by Emanuel Kopp and Peter Williams by Peter Williams, Yasser Abdih, and Emanuel Kopp by Peter Williams
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Bill Nelson on the Using the Discount Window for Liquidity Requirements and Its Implications for the Fed’s Balance Sheet
02/26/2024
Bill Nelson on the Using the Discount Window for Liquidity Requirements and Its Implications for the Fed’s Balance Sheet
Bill Nelson is the chief economist and an executive vice president at the Bank Policy Institute. Bill previously was 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 also worked closely with the BIS working groups in the design of liquidity regulations. As a returning guest to Macro Musings, he rejoins David to talk about the recent proposals to improve the Fed’s lender of last resort role via the discount window, as well as recent developments related to the Fed’s balance sheet. Transcript for this week’s Bill’s BPI BPI’s Twitter: David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings Check out our Macro Musings Related Links: by Bill Nelson by the Group of Thirty
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Eric Leeper on *A Fiscal Accounting of COVID Inflation*
02/19/2024
Eric Leeper on *A Fiscal Accounting of COVID Inflation*
Eric Leeper is a professor of economics at the University of Virginia, a former advisor to central banks around the world, and a distinguished visiting scholar at the Mercatus Center. Eric is also a returning guest to the podcast, and he rejoins Macro Musings to talk about his work on the fiscal accounting of the COVID inflation surge. Specifically, David and Eric discuss fiscal dominance during the pandemic period, how the fiscal theory of the price level explains inflationary trends, the backward and forward-looking fiscal accounting exercises, and more. Transcript for this week’s . Eric’s Twitter: Eric’s UVA Eric’s Mercatus David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings Check out our Macro Musings Related Links: by Eric Leeper and Joe Anderson by Eric Leeper by George Hall and Thomas Sargent by Markus Brunnermeier, Sebastian Merkel, and Yuliy Sannikov by Macro Musings
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Jeffrey Lacker on Governance at the Federal Reserve
02/12/2024
Jeffrey Lacker on Governance at the Federal Reserve
Jeffrey Lacker is a former president of the Federal Reserve Bank of Richmond, where he served as its head from 2004 to 2017. Jeffrey is now a senior affiliated scholar at the Mercatus Center and is also a returning guest to the podcast. He rejoins David on Macro Musings to talk about a wide range of Fed governance issues, including the evolving nature of governance at the Fed, the increasing politicization of the central bank, its continuing relationship with Congress, and a lot more. Transcript for this week’s Jeffrey’s Mercatus Jeffrey’s Jeffrey’s Richmond Fed David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings Check out our Macro Musings Related Links: by Jeffrey Lacker by Jeffrey Lacker an event hosted by the Mercatus Center by Macro Musings by Greg Ip
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Mark Koyama on *How the World Became Rich: The Historical Origins of Economic Growth*
02/05/2024
Mark Koyama on *How the World Became Rich: The Historical Origins of Economic Growth*
Mark Koyama is an associate professor of economics at George Mason University and is a senior fellow with the F.A. Hayek Program for Advanced Study in Philosophy, Politics, and Economics at the Mercatus Center. Mark is also a returning guest to the podcast, and he rejoins Macro Musings to talk about his recent book that he co-authored with Jared Rubin titled, *How the World Became Rich: The Historical Origins of Economic Growth.* Specifically, David and Mark discuss the key drivers of long-run economic growth throughout history and what we might be able to expect in the future. Transcript for this week’s Mark’s Twitter: Mark’s GMU Mark’s Mercatus David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings Check out our new Macro Musings Related Links: by Mark Koyama and Jared Rubin
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Gauti Eggertsson on the Post-Pandemic Inflation Surge and its Implications for Monetary Policy
01/29/2024
Gauti Eggertsson on the Post-Pandemic Inflation Surge and its Implications for Monetary Policy
Gauti Eggertsson is a professor of economics at Brown University and is the author of several recent papers on the causes of the 2021-22 inflation surge and the lessons to be drawn from it for monetary policy going forward. Gauti is also a returning guest to Macro Musings, and he rejoins the show to talk about these papers and their findings. Specifically, David and Gauti discuss the role of the Fed’s FAIT framework in the post-pandemic inflation surge, the return of the non-linear Phillips curve, the merits of nominal GDP targeting and average nominal output targeting, Gauti’s policy suggestions for the Fed, and a lot more. Transcript for this week’s Gauti’s Twitter: Gauti’s Gauti’s Brown University David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings Check out our new Macro Musings Related Links: by Gauti Eggertsson and Donald Kohn by Pierpaolo Benigno and Gauti Eggertsson by Pierpaolo Benigno and Gauti Eggertsson by Gauti Eggertsson, Sergey Egiev, Alessandro Lin, Josef Platzer, and Luca Riva by Gauti Eggertsson, Sergey Egiev, Alessandro Lin, Josef Platzer, and Luca Riva by Scott Sumner by Ben Bernanke
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Jonathon Hazell on Phillips Curves, Wage Rigidity, and How to Measure R-Star
01/22/2024
Jonathon Hazell on Phillips Curves, Wage Rigidity, and How to Measure R-Star
Jonathon Hazell is an assistant professor of economics at the London School of Economics. Jonathon joins Macro Musings to talk about Phillips curves, R-stars, and nominal wage rigidity. Specifically, Jonathon and David also discuss the how to view the recent inflation experience, how to measure the natural rate using natural experiments, the downward nature of wage rigidity, and a lot more. Transcript for this week’s Jonathon’s Twitter: Jonathon’s Jonathon’s LSE David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings Check out our new Macro Musings Related Links: by Jonathon Hazell, Veronica Backer-Peral, and Atif Mian by Jonathon Hazell, Juan Herreno, Emi Nakamura, and Jon Steinsson by Veronica Backer-Peral, Jonathon Hazell, and Atif Mian by Jonathon Hazell and Bledi Taska by Jonathon Hazell, Christina Patterson, Heather Sarsons, and Bledi Taska by Christopher Pissarides
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Skanda Amarnath and Preston Mui on the Tribal Transitory Debate and the Future of the Fed’s Framework
01/15/2024
Skanda Amarnath and Preston Mui on the Tribal Transitory Debate and the Future of the Fed’s Framework
Skanda Amarnath is the executive director of Employ America, a think tank that promotes full employment in the American economy, and Preston Mui is also a senior economist at Employ America. Skanda and Preston join Macro Musings to talk about U.S. disinflation and the debates surrounding it, as well as what we can expect from Fed policy in 2024 and beyond, and finally, the Fed’s framework review that is set to begin later this year. Transcript for this week’s Skanda’s Twitter: Skanda’s Medium Preston’s Twitter: Preston’s Github Skanda and Preston’s Employ America David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings Check out our new Macro Musings Related Links: by Skanda Amarnath by Preston Mui and Skanda Amarnath Jerome Powell’s at Monetary Policy Challenges in a Global Economy, a policy panel at the 24th Jacques Polak Annual Research Conferences, hosted by the IMF
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Claudio Borio on the Future of Central Bank Operating Systems
01/08/2024
Claudio Borio on the Future of Central Bank Operating Systems
Claudio Borio is the head of the Monetary and Economic Department at the Bank for International Settlements, or BIS. Claudio is also a returning guest to the podcast, and he rejoins Macro Musings to talk about central bank operating systems and the challenge of large balance sheets at central banks. David and Claudio also discuss the basics and uniqueness of the scarce reserve system, the arguments in favor of an abundant reserve system, the politics of large central bank balance sheets, the possibility of a tiered reserve system, and a lot more. Transcript for this week’s Claudio’s BIS David Beckworth’s Twitter: Follow us on Twitter: Join the Macro Musings Check out our new Macro Musings Related Links: by Claudio Borio by Jon Sindreu by Daniel Hinge
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