Macro Musings with David Beckworth

Latest Episodes:

Henry Curr on Inflation, the Phillips Curve, and A New Monetarism Nov 04, 2019

Show notes

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

Diego Zuluaga on Libra, Real-time Payments, and the Legacy of the Community Reinvestment Act Oct 28, 2019

Show notes

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

Frances Coppola on the Macroeconomics of Helicopter Drops Oct 21, 2019

Show notes

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

David Beckworth on the Facts, Fears, and Functionality of NGDP Level Targeting Oct 16, 2019

Show notes

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

Srinivas Thiruvadanthai on the Sectoral Financial Balance Approach to Macroeconomics Oct 14, 2019

Show notes

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

Bill Nelson on the Repo Market Stress, the Fed's Operating System, and the Prospects for a Standing Repo Facility Oct 07, 2019

Show notes

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

Jim Dorn on the History of Monetary Policy in Washington D.C. and its Future Sep 30, 2019

Show notes

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

Gregg Gelzinis on Reforming FSOC and How to Limit Future Financial Crises Sep 23, 2019

Show notes

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

Soumaya Keynes on Trade, Dollar Dominance, and the Highlights of Jackson Hole Sep 16, 2019

Show notes

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

Alex Tabarrok on the Elements of Economic Growth and the Decline of Dynamism Sep 09, 2019

Show notes

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