Monetary Policy
By minimizing the harm caused by recessions and high inflations, monetary policy can promote economic stability and create an environment in which individuals and businesses prosper and thrive. In pursuit of these goals, Mercatus research shows why and how the Federal Reserve should (a) follow a rules-based approach to making policy, (b) increase its transparency and accountability to the public, and (c) better utilize market signals.
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Latest work in Monetary Policy
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Veteran Federal Reserve Exec Thomas Hoenig Warns We’re on a Trajectory for Crisis | Thoughtful Money
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- | Radio Appearance Radio Appearance
Forget About an Economic Recession? | South Carolina Public Radio
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Isabel Schnabel on the ECB and its New Operational Framework
After conducting its most recent review, the ECB has made important changes to its operational framework that will ensure continued effectiveness, efficiency, flexibility, and robustness.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Andrew Levin and Christina Parajon Skinner on *Central Bank Undersight: Assessing the Fed’s Accountability to Congress*
Strengthening reporting requirements and implementing external reviews are just a couple of avenues that Congress could pursue to restore effective oversight of the Fed.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Fed Is Telling the Markets to ‘Curb Your Enthusiasm’ | Fox Business Network
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Anat Admati on the US Banking System and the Basel III Endgame
Requiring banks to fund with higher levels of capital is one way to promote a safer and healthier banking system.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts ‘Would Be a Surprise to Me’ at This Point | CNBC’s “Squawk Box”
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Steven Kamin and Mark Sobel on the Current State of Dollar Dominance
Given the liquidity, safety, and investor protections the dollar provides, its pivotal status as the world’s reserve currency provides numerous macroeconomic and geopolitical benefits.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Peter Williams on Interest Rates, Term Premium, and the Importance of Inflation Expectations
Adding additional macroeconomic data to factor models may help provide a more stable estimate of the neutral rate of interest, or R-star.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts This Year Would Be a Surprise | CNBC
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Bill Nelson on the Using the Discount Window for Liquidity Requirements and Its Implications for the Fed’s Balance Sheet
Removing the stigmatization associated with use of the discount window is one way for the Fed to improve its role as lender of last resort.
- | Financial Markets Financial Markets
- | Expert Commentary Expert Commentary
Is the Bank Secrecy Act Vulnerable to Constitutional Challenge Over Post January 6th Data Collection? | FinRegRag
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Getting Monetary Policy Right: What Should the Federal Reserve Have Learned from Its Pandemic Response?
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Monetary Policy: Narrowing Discretion, Improving Outcomes | FinRegRag
- | Monetary Policy Monetary Policy
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Monetary Policy at a Crossroads | The Concord Coalition’s “Facing the Future”
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Eric Leeper on *A Fiscal Accounting of COVID Inflation*
While many economists cite a range of different factors as the cause of the COVID inflation surge, a large increase in federal pandemic related spending may be the most likely culprit.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Behind the Fed | Double Take
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Jeffrey Lacker on Governance at the Federal Reserve
After falling behind the curve during the recent inflation episode, the Fed must consider reviewing its governance structure moving forward.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Questions on National Debt and Interest Rates | FinRegRag
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mark Koyama on *How the World Became Rich: The Historical Origins of Economic Growth*
Geography, institutions, and culture are just a few of the key drivers that help explain economic growth throughout history.
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Veteran Federal Reserve Exec Thomas Hoenig Warns We’re on a Trajectory for Crisis | Thoughtful Money
- | Monetary Policy Monetary Policy
- | Radio Appearance Radio Appearance
Forget About an Economic Recession? | South Carolina Public Radio
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Isabel Schnabel on the ECB and its New Operational Framework
After conducting its most recent review, the ECB has made important changes to its operational framework that will ensure continued effectiveness, efficiency, flexibility, and robustness.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Andrew Levin and Christina Parajon Skinner on *Central Bank Undersight: Assessing the Fed’s Accountability to Congress*
Strengthening reporting requirements and implementing external reviews are just a couple of avenues that Congress could pursue to restore effective oversight of the Fed.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Fed Is Telling the Markets to ‘Curb Your Enthusiasm’ | Fox Business Network
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Anat Admati on the US Banking System and the Basel III Endgame
Requiring banks to fund with higher levels of capital is one way to promote a safer and healthier banking system.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts ‘Would Be a Surprise to Me’ at This Point | CNBC’s “Squawk Box”
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Steven Kamin and Mark Sobel on the Current State of Dollar Dominance
Given the liquidity, safety, and investor protections the dollar provides, its pivotal status as the world’s reserve currency provides numerous macroeconomic and geopolitical benefits.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Peter Williams on Interest Rates, Term Premium, and the Importance of Inflation Expectations
Adding additional macroeconomic data to factor models may help provide a more stable estimate of the neutral rate of interest, or R-star.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts This Year Would Be a Surprise | CNBC
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Bill Nelson on the Using the Discount Window for Liquidity Requirements and Its Implications for the Fed’s Balance Sheet
Removing the stigmatization associated with use of the discount window is one way for the Fed to improve its role as lender of last resort.
- | Financial Markets Financial Markets
- | Expert Commentary Expert Commentary
Is the Bank Secrecy Act Vulnerable to Constitutional Challenge Over Post January 6th Data Collection? | FinRegRag
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Getting Monetary Policy Right: What Should the Federal Reserve Have Learned from Its Pandemic Response?
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Monetary Policy: Narrowing Discretion, Improving Outcomes | FinRegRag
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Monetary Policy at a Crossroads | The Concord Coalition’s “Facing the Future”
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Eric Leeper on *A Fiscal Accounting of COVID Inflation*
While many economists cite a range of different factors as the cause of the COVID inflation surge, a large increase in federal pandemic related spending may be the most likely culprit.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Behind the Fed | Double Take
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Jeffrey Lacker on Governance at the Federal Reserve
After falling behind the curve during the recent inflation episode, the Fed must consider reviewing its governance structure moving forward.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Questions on National Debt and Interest Rates | FinRegRag
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mark Koyama on *How the World Became Rich: The Historical Origins of Economic Growth*
Geography, institutions, and culture are just a few of the key drivers that help explain economic growth throughout history.
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts This Year Would Be a Surprise | CNBC
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Bill Nelson on the Using the Discount Window for Liquidity Requirements and Its Implications for the Fed’s Balance Sheet
Removing the stigmatization associated with use of the discount window is one way for the Fed to improve its role as lender of last resort.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Monetary Policy at a Crossroads | The Concord Coalition’s “Facing the Future”
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Eric Leeper on *A Fiscal Accounting of COVID Inflation*
While many economists cite a range of different factors as the cause of the COVID inflation surge, a large increase in federal pandemic related spending may be the most likely culprit.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Behind the Fed | Double Take
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Jeffrey Lacker on Governance at the Federal Reserve
After falling behind the curve during the recent inflation episode, the Fed must consider reviewing its governance structure moving forward.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mark Koyama on *How the World Became Rich: The Historical Origins of Economic Growth*
Geography, institutions, and culture are just a few of the key drivers that help explain economic growth throughout history.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Gauti Eggertsson on the Post-Pandemic Inflation Surge and its Implications for Monetary Policy
Heading into the next framework review, there are numerous policy changes that the Fed could consider to help avoid inflationary crises in the future.
- | Monetary Policy Monetary Policy
- | Radio Appearance Radio Appearance
Do Both Sides of the Aisle Have It Wrong on Inflation | Lars Larson Show
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Jonathon Hazell on Phillips Curves, Wage Rigidity, and How to Measure R-Star
Despite some popular commentary, the Phillips curve continues to be an important idea in understanding the inflation rate.
- | Monetary Policy Monetary Policy
- | Radio Appearance Radio Appearance
Inflation and Job Numbers | American Radio Journal
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Skanda Amarnath and Preston Mui on the Tribal Transitory Debate and the Future of the Fed’s Framework
Entering 2024, economists and policymakers should consider dropping tribalist attitudes when discussing the future path of inflation.
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- | Radio Appearance Radio Appearance
What’s the Difference Between the CPI and the PPI? | Marketplace Radio
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
CPI Inflation and the Broader Economy | American Ag Network
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Claudio Borio on the Future of Central Bank Operating Systems
Despite overestimated concerns surrounding balance sheet size and reserve demand instability, central banks should consider the possibility of returning to a scarce reserve operating system.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Colby Smith, Steven Kelly, and Gerard DiPippo on the Highlights of 2023 and Looking Ahead to the Future
An esteemed panel of guests join Macro Musings to reflect on the biggest surprises, themes, and stories of 2023 with an eye toward what 2024 may have in store.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Tyler Cowen on the Greatest Economist of All Time and Other Macro Awards
From Adam Smith to Milton Friedman, Tyler Cowen breaks down his evidence and reasoning for who should be considered the greatest economist of all time.
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- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Nicolas Cachanosky on Dollarization in Argentina
As hyperinflation and other macroeconomic concerns continue plague Argentina, committing to a policy of dollarization may offer a much needed remedy.
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- | TV Appearance TV Appearance
The Fed’s Decision on Interest Rates | BBC
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Charlie Evans on the Past, Present, and Future of U.S. Monetary Policy
Heading into the next framework review, policy messaging will be a crucial consideration for the Fed as it considers possible changes to the current FAIT regime.