Macro Musings with David Beckworth

Latest Episodes:

Judge Glock on the Riefler-Keynes Doctrine and Monetary Policy During the Great Depression Sep 02, 2019

Show notes

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

Thomas Hoenig on the Federal Reserve and the State of Banking in the US Aug 26, 2019

Show notes

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

Chris Crowe on Hedge Fund Perspectives and the Economic Implications of Brexit Aug 19, 2019

Show notes

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

Aaron Klein on Real-time Payments and Financial Regulation Aug 12, 2019

Show notes

Aaron Klein is the director of the Center on Markets and Regulations at the Brookings Institution where, among other things, he focuses on financial regulations and real time payments. Aaron has written widely on real time payments and he joins the show today to talk about this issue, as they discuss the definition of real-time payments, how they could have a positive impact on limiting income inequality, and why the Fed is now interested in setting up its own real-time payments system. David and Aaron also discuss banking reform after the recession, the shadow banking system, and why a lack of bank failures may be a worrying signal.

Transcript for the episode: https://www.mercatus.org/bridge/podcasts/08122019/aaron-klein-real-time-payments-and-financial-regulation

Aaron's Twitter: @Aarondklein

Aaron's Brookings profile: https://www.brookings.edu/experts/aaron-klein/

Related Links:

*Is China's New Payment System the Future?* by Aaron Klein

https://www.brookings.edu/research/is-chinas-new-payment-system-the-future/

*Round One: What Role Should the Federal Reserve Play in Developing a Faster Payments System?* Symposium featuring James Angel, Aaron Klein and George Selgin

https://www.mercatus.org/bridge/commentary/round-one-what-role-should-federal-reserve-play-developing-faster-payments-system

*Round Two: What Role Should the Federal Reserve Play in Developing a Faster Payments System?* Symposium featuring James Angel, Aaron Klein and George Selgin

https://www.mercatus.org/bridge/commentary/round-two-what-role-should-federal-reserve-play-developing-faster-payments-system

David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Bonus Episode – Watch Party for the Fed's Historic Interest Rate Cut Aug 07, 2019

Show notes

In this special bonus episode of Macro Musings, David Beckworth joins Employ America and several other monetary policy enthusiasts on the day of the July FOMC meeting to discuss what would be an historic event – the first interest rate cut executed by the Fed since December 2008, and the market reactions to this event. In addition to their discussion of this eventual rate cut, David and the other Fed watchers also get a chance to talk about Judy Shelton's nomination to the Fed Board of Governors, the significance and aftermath of the recent Humphrey Hawkins hearing, how the Fed's decision to cut parallels the European Central Bank, and more.

Transcript for the episode: https://www.mercatus.org/bridge/podcasts/08072019/bonus-episode-watch-party-fed%E2%80%99s-historic-interest-rate-cut

Related Links:

Employ America's home page: https://employamerica.org/

Sam Bell's Twitter: @sam_a_bell

Skanda Amarnath's Twitter: @IrvingSwisher

Sam & Skanda's bios: https://employamerica.org/about/

Soumaya Keynes' Twitter: @SoumayaKeynes

Soumaya's website: https://soumayakeynes.com/

Soumaya's Economist profile: http://mediadirectory.economist.com/people/soumaya-keynes/

Ryan Avent's Twitter: @ryanavent

Ryan's Economist profile: https://mediadirectory.economist.com/people/ryan-avent/

Nick Bunker's Twitter: @nick_bunker

Nick's Indeed profile: https://www.hiringlab.org/author/nbunker/

David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Evan Koenig on the Fed's Review Period, Monetary Regimes, and Yield Curves Aug 05, 2019

Show notes

Evan Koenig is a senior vice president and a principal policy advisor for the Federal Reserve Bank of Dallas where he has been since 1988. Evan joins the show today to talk about his time at the Fed and some of his research. David and Evan also discuss where the Federal Reserve's review is going in the next six months, Evan's preferred version of nominal GDP targeting, and how important the yield curve is relative to other credit indicators.

Transcript for the episode: https://www.mercatus.org/bridge/podcasts/08052019/evan-koenig-feds-review-period-monetary-regimes-and-yield-curves

Evan's Dallas Fed bio: https://www.dallasfed.org/research/economists/koenig.aspx

Evan's research profile: https://ideas.repec.org/f/pko435.html

Related Links:

*Like a Good Neighbor: Monetary Policy, Financial Stability, and the Distribution of Risk* by Evan Koenig

https://www.ijcb.org/journal/ijcb13q2a3.pdf

*Credit Indicators as Predictors of Economic Activity: A Real-Time VAR Analysis* by N Kundan Kishor and Evan Koenig

https://econpapers.repec.org/article/wlyjmoncb/v_3a46_3ay_3a2014_3ai_3a2-3_3ap_3a545-564.htm

*Methods of Policy Accommodation at the Interest-Rate Lower Bound* by Michael Woodford

https://www.kansascityfed.org/publicat/sympos/2012/mw.pdf?sm=jh083112-4

David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Ulrich Bindseil on Central Bank Operating Systems Jul 29, 2019

Show notes

Ulirch Bindseil is currently the director general of the Directorate General Market Operations at the European Central Bank (ECB), and in November he will become the director general of Market Infrastructure and Payments at the ECB. Ulrich has written widely on central banking operative frameworks, including a textbook, and is considered one of the world's leading authorities on operating systems. He joins the show today to talk about these frameworks and much more. David and Ulrich also discuss the debate between floor and corridor systems, the principles for evaluating operating frameworks, and the big lessons central bankers have learned from the past decade.

Transcript for the episode: https://www.mercatus.org/bridge/podcasts/07292019/ulrich-bindseil-central-bank-operating-systems

Ulrich's ECB paper archive: https://www.ecb.europa.eu/pub/research/authors/profiles/ulrich-bindseil.en.html

Ulrich's ResearchGate profile: https://www.researchgate.net/profile/Ulrich_Bindseil

Related Links:

*Evaluating Monetary Policy Frameworks* by Ulrich Bindseil

https://www.kansascityfed.org/~/media/files/publicat/sympos/2016/econsymposium-bindseil-paper2.pdf?la=en

*Central Banking Before 1800: A Rehabilitation* by Ulrich Bindseil

https://global.oup.com/academic/product/central-banking-before-1800-9780198849995?prevNumResPerPage=60&lang=en&cc=gb

David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Tyler Cowen on the Culture of Big Business in the United States Jul 22, 2019

Show notes

Tyler Cowen is a professor of economics at George Mason University and is the co-author of the popular economics blog, Marginal Revolution. Tyler has published widely in economics and is the author of numerous books including his 2017 book, *The Complacent Class: The Self-Defeating Quest for the American Dream.* As a returning guest to the show, however, he joins today to talk about his newest book, *Big Business: A Love Letter to an American Anti-Hero.* David and Tyler also discuss many aspects of big business, including its common critiques, the fallacy of the monopoly in America, and how income inequality has become tied to the firm.

Transcript for the episode: https://www.mercatus.org/bridge/podcasts/07222019/tyler-cowen-culture-big-business-united-states

Tyler's Twitter: @tylercowen

Tyler's Mercatus profile: https://www.mercatus.org/tyler-cowen

Tyler and Alex's blog: https://marginalrevolution.com/

Related Links:

*Big Business: A Love Letter to an American Anti-Hero* by Tyler Cowen

https://us.macmillan.com/books/9781250110541

*The Complacent Class: The Self-Defeating Quest for the American Dream* by Tyler Cowen

https://read.macmillan.com/lp/the-complacent-class/

David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Joe Gagnon on Currency Manipulation, Trade Imbalances, and Libra Jul 15, 2019

Show notes

Joe Gagnon is a senior fellow at the Peterson Institute for International Economics where he has been since September 2009. Previously, Joe worked for the Federal Reserve Board of Governors as a senior economist and the associate director of both the Division of International Finance and the Division of Monetary Affairs, and he has also served at the US Treasury Department. Joe is a returning guest to Macro Musings and joins the show today to talk about the growing interest among U.S. politicians in managing the currency to help facilitate trade imbalances. David and Joe also discuss the policy implications of trade imbalances, the new Libra currency, and how to us countervailing currency intervention to combat currency manipulation.

Transcript for the episode: https://www.mercatus.org/bridge/podcasts/07152019/currency-manipulation-trade-imbalances-and-libra

Joe's Twitter: @GagnonMacro

Joe's PIIE profile: https://www.piie.com/experts/senior-research-staff/joseph-e-gagnon?author_id=653

Related Links:

*Currency Conflict and Trade Policy: A New Strategy for the United States* by Joe Gagnon and Fred Bergsten

https://www.piie.com/bookstore/currency-conflict-and-trade-policy-new-strategy-united-states

*The Financial Market Effects of the Federal Reserve's Large-Scale Asset Purchases* by Joe Gagnon, Matthew Raskin, Julie Remache, and Brian Sack

https://www.ijcb.org/journal/ijcb11q1a1.htm

*A Plan for Economic Patriotism* proposal by Elizabeth Warren

https://medium.com/@teamwarren/a-plan-for-economic-patriotism-13b879f4cfc7

*Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold?* by Ethan Ilzetzki, Carmen Reinhart, and Kenneth Rogoff*

https://www.nber.org/papers/w23134

*Did France Cause the Great Depression* by Douglas Irwin

https://www.nber.org/papers/w16350

David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Heather Boushey on Income Inequality and Automatic Stabilizers Jul 08, 2019

Show notes

Heather Boushey is the executive director at the Washington Center for Equitable Growth, a think tank founded to accelerate cutting edge analysis into whether and how structural changes in the US economy affect economic growth. Heather recently co-edited a book titled, *Recession Ready: Fiscal Policies to Stabilize the American Economy,* and she joins the show today to discuss it. David and Heather also discuss income inequality, automatic stabilizers for fiscal policy, and how monetary policy intersects with these issues.

Transcript for the episode: https://www.mercatus.org/bridge/podcasts/07082019/income-inequality-and-automatic-stabilizers

Heather's Twitter: @HBoushey

Heather's Equitable Growth profile: https://equitablegrowth.org/people/heather-boushey/

Related Links:

Equitable Growth's funded research page: https://equitablegrowth.org/elevating-research/funded-research/

*Recession Ready: Fiscal Policies to Stabilize the American Economy* by Heather Boushey, Ryan Nunn, and Jay Shambaugh https://www.brookings.edu/wp-content/uploads/2019/05/ES_THP_AutomaticStabilizers_FullBook_web_20190513.pdf

*Public Infrastructure Investments, Productivity and Welfare in Fixed Geographic Areas* by Andrew Haughwout

https://www.newyorkfed.org/research/staff_reports/sr104.html

David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth