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
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Mortgage Rates Creep Higher, Carmax Stock Plunges | Yahoo! Finance Live
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q4 2023
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Julia Coronado on Productivity, Commercial Real Estate, and the Fed’s Soft Landing
As the Fed continues to seek a soft landing in 2024, election year politics and a shaky commercial real estate market are just a couple of the remaining challenges facing the central bank.

- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Buy the People: Why Everyone Loves To Hate the Fed | American Banker’s “Bank Shot”
- | 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
- | 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
- | 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
- | Research Papers Research Papers
Getting Monetary Policy Right: What Should the Federal Reserve Have Learned from Its Pandemic Response?
- | 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
- | Expert Commentary Expert Commentary
Inflation Wasn’t Transitory | City Journal
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Mortgage Rates Creep Higher, Carmax Stock Plunges | Yahoo! Finance Live
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q4 2023
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Julia Coronado on Productivity, Commercial Real Estate, and the Fed’s Soft Landing
As the Fed continues to seek a soft landing in 2024, election year politics and a shaky commercial real estate market are just a couple of the remaining challenges facing the central bank.

- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Buy the People: Why Everyone Loves To Hate the Fed | American Banker’s “Bank Shot”
- | 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
- | 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
- | 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
- | Research Papers Research Papers
Getting Monetary Policy Right: What Should the Federal Reserve Have Learned from Its Pandemic Response?
- | 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
- | Expert Commentary Expert Commentary