Macro Musings with David Beckworth

Latest Episodes:

58 – David Schleicher on Local and State Regulation and Declining Mobility May 22, 2017

Show notes

David Schleicher is an Associate Professor of Law at Yale Law School and is an expert in election law, land use, local government law, urban development, transportation, and local regulation of the sharing economy. He joins the show to discuss his new journal article, "Stuck! The Law and Economics of Residential Stability," which argues that government regulations, such as occupational licensing and land-use laws, have led to a significant decline in inter-state mobility. Schleicher describes the negative macroeconomic implications of this trend and explains how we can reverse it. David's blog: http://macromarketmusings.blogspot.com/ David Schleicher's Yale profile: https://law.yale.edu/david-n-schleicher David Beckworth's Twitter: @DavidBeckworth David Schleicher's Twitter: @ProfSchleich Related links: "Stuck! The Law and Economics of Residential Stability" by David Schleicher https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2896309

57 – Paul Krugman on Liquidity Traps, the Great Recession, and Isaac Asimov May 15, 2017

Show notes

Paul Krugman is a Nobel Laureate in economics, a columnist at *The New York Times,* and a Distinguished Professor of Economics at the Graduate Center of the City University of New York. He joins the show to discuss his work on liquidity traps, Japan's Lost Decade, and lessons from the Great Recession. Paul also explains how Isaac Asimov's science fiction inspired him to become an economist. David's blog: http://macromarketmusings.blogspot.com/ Paul Krugman's CUNY profile: https://www.gc.cuny.edu/stonecenter/Paul-Krugman Paul Krugman's blog: https://krugman.blogs.nytimes.com/ Paul Krugman's NYT archive: https://www.nytimes.com/column/paul-krugman David's Twitter: @DavidBeckworth Paul Krugman's Twitter: @paulkrugman Related links: "It's Baaack: Japan's Slump and the Return of the Liquidity Trap" by Kathryn M. Dominguez, Kenneth S. Rogoff, and Paul R. Krugman https://www.brookings.edu/bpea-articles/its-baaack-japans-slump-and-the-return-of-the-liquidity-trap/ "Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo approach" by Gauti Eggertsson and Paul Krugman https://www.gc.cuny.edu/CUNY_GC/media/LISCenter/pkrugman/The-Quarterly-Journal-of-Economics-2012-Eggertsson-1469-513.pdf "The New York Economic Geography, Now Middle-Aged" by Paul Krugman https://www.princeton.edu/~pkrugman/aag.pdf *Global Inequality: A New Approach for the Age of Globalization* by Branko Milanovic http://www.hup.harvard.edu/catalog.php?isbn=9780674737136

56 – Ethan Ilzetzki on the U.S. Dollar as an Anchor Currency May 08, 2017

Show notes

Ethan Ilzetzki is an assistant professor of economics at the London School of Economics and a research affiliate at the Centre for Economic Policy Research. He joins the show to discuss exchange rate regimes, anchor currencies, and the new Triffin dilemma. Ethan points out how the U.S. dollar is connected to a staggering 70 percent of global GDP. David and Ethan discuss what the dollar's dominant role in the global economy means for U.S. monetary policy, both at home and abroad. David's blog: http://macromarketmusings.blogspot.com/ Ethan Ilzetzki's LSE profile: http://personal.lse.ac.uk/ilzetzki/index.htm/ David's Twitter: @DavidBeckworth Ethan Ilzetzki's Twitter: @ilzetzki Related links: "Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold?" by Ethan Ilzetzki (with Carmen Reinhart and Kenneth Rogoff) http://personal.lse.ac.uk/ilzetzki/index.htm/Research/Ilzetzki&Reinhart&Rogoff.pdf "How Big (Small?) are Fiscal Multipliers?" by Ethan Ilzetzki (with Enrique G. Mendoza and Carlos A. Vegh) http://www.sciencedirect.com/science/article/pii/S030439321200116X

55 – Daniel Griswold on the Basics of Trade May 01, 2017

Show notes

Daniel Griswold is a Mercatus Center Senior Research Fellow and Co-Director of the Program on the American Economy and Globalization at the Mercatus Center at George Mason University. He joins the show to discuss the theory of trade, dating back to Adam Smith, and his work on current US trade policy. Daniel and David discuss some of the misconceptions surrounding trade and why Americans should embrace free trade instead of protectionism. David's blog: http://macromarketmusings.blogspot.com/ Daniel Griswold's blog: https://madabouttrade.com/ David's Twitter: @DavidBeckworth Daniel Griswold's Twitter: @DanielGriswold Related links: "Plumbing America's Balance of Trade" by Daniel Griswold https://www.mercatus.org/publications/american-balance-of-trade *Mad About Trade: Why Main Street America Should Embrace Globalization* by Daniel Griswold https://www.amazon.com/Mad-About-Trade-America-Globalization/dp/193530819X "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade" by David Autor, David Dorn, & Gordon Hanson http://www.ddorn.net/papers/Autor-Dorn-Hanson-ChinaShock.pdf

54 – Josh Zumbrun on Challenges and Angst Facing the Economics Profession Apr 24, 2017

Show notes

Josh Zumbrun is a national economics correspondent for the Wall Street Journal. David and Josh discuss what seems to be the diminished status of economists in a populist era and what role economists will play in the Trump Administration. Josh also shares his thoughts on life as an economics journalist in the digital age. David's blog: http://macromarketmusings.blogspot.com/ Josh Zumbrun's WSJ archive: http://topics.wsj.com/person/Z/josh-zumbrun/7972 David's Twitter: @DavidBeckworth Josh Zumbrun's Twitter: @JoshZumbrun Related links: "How to Restore Faith in Economics" by Noah Smith https://www.bloomberg.com/view/articles/2017-03-15/how-to-restore-faith-in-economics "Donald Trump's Cabinet Won't Include Chairman of CEA" by Josh Zumbrun https://www.wsj.com/articles/donald-trumps-cabinet-wont-include-chairman-of-cea-1486670755?tesla=y

53 – James Bullard on Life as a Fed Bank President and Monetary Policy in 2017 Apr 17, 2017

Show notes

In this week's episode, Jim Bullard, the president and CEO of the Federal Reserve Bank of St. Louis, joins the show to discuss his work as a Federal Reserve executive and as a researcher in monetary policy. Bullard shares his thoughts on why inflation has been so persistently low since 2008 and whether the Fed should pursue a more symmetric inflation target. He and David also discuss the Fed's plans for monetary policy in 2017. In Bullard's view, the Fed should focus on reducing its balance sheet before it turns to raising rates further. (Note: this episode was recorded on April 5, 2017) Interview transcript: https://www.mercatus.org/podcasts/04172017/macro-musings-53-james-bullard-federal-reserve David's blog: http://macromarketmusings.blogspot.com/ Jim Bullard's Federal Reserve profile: https://www.stlouisfed.org/from-the-president David's Twitter: @DavidBeckworth St. Louis Fed's Twitter: @stlouisfed Related links: "Comments on the FOMC's Amendments to Its Statement on Longer-Run Goals" by James Bullard https://www.stlouisfed.org/on-the-economy/2016/february/bullard-comments-fomc-amendments-statement-longer-run-goals "Current Monetary Policy, the New Fiscal Policy and the Fed's Balance Sheet" by James Bullard https://www.stlouisfed.org/~/media/Files/PDFs/Bullard/remarks/Bullard_Economic_Club_of_Memphis_24_Mar_2017.pdf?la=en "Everything the Market Thinks About Inflation Might be Wrong" by Jon Sindreu (Wall Street Journal) https://www.wsj.com/articles/everything-the-market-thinks-about-inflation-might-be-wrong-1488796206 "As Debate Rages, Simple Analogy Shows How Fed Controls Inflation" by David Beckworth (The Hill) http://thehill.com/blogs/pundits-blog/economy-budget/324054-as-debate-rages-simple-analogy-shows-how-central-banks-still-control The Dallas Fed Trimmed Mean Inflation Rate https://www.dallasfed.org/research/pce

52 – Tyler Cowen on Complacency, Immobility, and Stagnation Apr 10, 2017

Show notes

Tyler Cowen is a professor of economics at George Mason University as well as the general director of the Mercatus Center at George Mason University. He joins the show to discuss his new book, *The Complacent Class: The Self-Defeating Quest for the American Dream.* Tyler argues that restlessness and willingness to take risks have been key traits throughout American history. However, in the last few decades, American society has become more risk-averse. While we may have become more comfortable with less risk-taking, this complacency has led to less innovation and dynamism in the economy. Such stasis is causing economic stagnation and other woes throughout the United States. David's blog: http://macromarketmusings.blogspot.com/ Tyler Cowen's blog: http://marginalrevolution.com/ David's Twitter: @DavidBeckworth Tyler Cowen's Twitter: @tylercowen Related links: *The Complacent Class: The Self-Defeating Quest for the American Dream* by Tyler Cowen https://www.amazon.com/Complacent-Class-Self-Defeating-Quest-American/dp/1250108691 *How Complacent Are You? Take the Quiz!* http://tylercowen.com/complacent-class-quiz/ "Why the Global Shortage of Safe Assets Matters" by David Beckworth http://macromarketmusings.blogspot.com/2011/12/why-global-shortage-of-safe-assets.html "The Making of Hawks and Doves: Inflation Experiences on the FOMC" by Ulrike Malmendier, Stefan Nagel, and Zhen Yan http://www.nber.org/papers/w23228

51 – George Selgin on Reforming Open Market Operations and Normalizing Fed Policy Apr 03, 2017

Show notes

George Selgin, director of the Cato Institute's Center for Monetary and Financial Alternatives, returns to *Macro Musings* to discuss his new proposal to reform how the Fed conducts open-market operations. He proposes abolishing the current primary dealer system and expanding the Fed's number of counterparties. David and George also discuss the Fed's plans for 2017 and whether it will seek to reduce its large balance sheet. David's blog: macromarketmusings.blogspot.com/ George Selgin's Cato archive: www.cato.org/people/george-selgin George Selgin's Alt-M archive: https://www.alt-m.org/author/selgin/ (contains George's monetary policy primer posts) David's Twitter: twitter.com/DavidBeckworth George Selgin's Twitter: twitter.com/georgeselgin Related links: *Money: Free and Unfree* by George Selgin https://www.amazon.com/Money-Free-Unfree-George-Selgin/dp/1944424296 "Reforming Last-Resort Lending: The Flexible Open-Market Alternative" by George Selgin (as part of *Prosperity Unleashed: Smarter Financial Regulation* published by the Heritage Foundation) http://www.heritage.org/sites/default/files/2017-02/13_ProsperityUnleashed_Chapter13.pdf

50 - Steve Hanke on Hyperinflations Mar 27, 2017

Show notes

Steve Hanke is a professor of applied economics and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at The Johns Hopkins University in Baltimore. He is also a senior fellow and director of the Troubled Currencies Project at the Cato Institute. Steve joins the show to discuss his work on the history of hyperinflations. David and Steve discuss what exactly constitutes hyperinflation as well as historical examples of hyperinflation from 1940s Hungary to present-day Venezuela. David's blog: http://macromarketmusings.blogspot.com/ Steve Hanke's Cato profile: https://www.cato.org/people/steve-hanke David's Twitter: @DavidBeckworth Steve Hanke's Twitter: @steve_hanke Related links: Venezuela Enters the Record Book: the 57th Entry in the Hanke-Krus World Hyperinflation Table (contains full list of world hyperinflations) https://object.cato.org/sites/cato.org/files/articles/hanke-sae-december-2016.pdf

49 - Jeffrey Frankel on Recession-Dating, the Plaza Accords, and Globalization Mar 20, 2017

Show notes

Jeffrey Frankel is a professor and economist at Harvard University and the director of the Program in International Finance and Macroeconomics at the National Bureau of Economic Research (NBER). He joins the show to discuss serving on the NBER's Business Cycle Dating Committee, which officially declares the start and end of recessions. David and Jeff also discuss the monetary history of the Plaza Accord, an international agreement in 1985 to devalue the U.S. dollar. Jeff also shares his thoughts on globalization in the past few decades and current-day challenges facing it. David's blog: http://macromarketmusings.blogspot.com/ Jeff Frankel's Harvard profile: https://www.hks.harvard.edu/about/faculty-staff-directory/jeffrey-frankel Jeff Frankel's NBER publications: http://www.nber.org/authors/jeffrey_frankel David's Twitter: @DavidBeckworth Related links: "Globalization of the Economy" by Jeffrey Frankel https://www.hks.harvard.edu/fs/jfrankel/NyeGlobWPwFigPost.pdf "Globalization and Chinese Growth: End of Trends" by Jeffrey Frankel http://scholar.harvard.edu/frankel/publications/globalization-and-chinese-growth-ends-trends "The Plaza Accord: 30 Years Later" by Jeffrey Frankel https://www.hks.harvard.edu/fs/jfrankel/PlazaAccord-PIIE2016.pdf

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