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
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Inflation Wasn’t Transitory | City Journal
- | 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.

- | Monetary Policy Monetary Policy
- | 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
- | Policy Briefs Policy Briefs
Governance and Diversity at the Federal Reserve
- | 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.

- | Monetary Policy Monetary Policy
- | Announcements Announcements
Former Richmond Fed President Lacker Joins Mercatus
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Dollarization Won’t Solve Argentina’s Fiscal Problems | The Hill
- | Monetary Policy Monetary Policy
- | 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.

- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
The Fed’s Decision on Interest Rates | BBC
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Will the Economy Get Better in 2024? | Washington Examiner
- | 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.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Matteo Maggiori and Jesse Schreger on Geoeconomics and its Policy Implications
As geopolitical power struggles continue to unfold across the globe, the burgeoning field of geoeconomics is becoming increasingly crucial as a tool to help understand how nations leverage their economic strength in the political arena.

- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Argentina’s Best Hope: Dollarization | City Journal
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q3 2023
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Matthew Raskin on Treasury Market Stability, Interest Rates, and the Fed’s Balance Sheet
Increased central clearing and use of the Standing Repo Facility are just a few ways to improve the liquidity and stability of the Treasury market.

Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Inflation Wasn’t Transitory | City Journal
- | 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.

- | Monetary Policy Monetary Policy
- | 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
- | Policy Briefs Policy Briefs
Governance and Diversity at the Federal Reserve
- | 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.

- | Monetary Policy Monetary Policy
- | Announcements Announcements
Former Richmond Fed President Lacker Joins Mercatus
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Dollarization Won’t Solve Argentina’s Fiscal Problems | The Hill
- | Monetary Policy Monetary Policy
- | 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.

- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
The Fed’s Decision on Interest Rates | BBC
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Will the Economy Get Better in 2024? | Washington Examiner
- | 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.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Matteo Maggiori and Jesse Schreger on Geoeconomics and its Policy Implications
As geopolitical power struggles continue to unfold across the globe, the burgeoning field of geoeconomics is becoming increasingly crucial as a tool to help understand how nations leverage their economic strength in the political arena.

- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Argentina’s Best Hope: Dollarization | City Journal
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q3 2023
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Matthew Raskin on Treasury Market Stability, Interest Rates, and the Fed’s Balance Sheet
Increased central clearing and use of the Standing Repo Facility are just a few ways to improve the liquidity and stability of the Treasury market.

Latest work in Monetary Policy
- | Low Interest Rates and the Economy: A Mercatus Colloquium Low Interest Rates and the Economy: A Mercatus Colloquium
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Four Ways of Increasing Interest Rates
- | Low Interest Rates and the Economy: A Mercatus Colloquium Low Interest Rates and the Economy: A Mercatus Colloquium
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Low Interest Rates and Fiscal Policy
- | Low Interest Rates and the Economy: A Mercatus Colloquium Low Interest Rates and the Economy: A Mercatus Colloquium
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
What Low Interest Rates Mean for State and Local Government Pensions
- | Low Interest Rates and the Economy: A Mercatus Colloquium Low Interest Rates and the Economy: A Mercatus Colloquium
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
What Would Change Interest Rates?
- | Low Interest Rates and the Economy: A Mercatus Colloquium Low Interest Rates and the Economy: A Mercatus Colloquium
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Fiscal and Economic Implications of Higher Interest Rates
- | Low Interest Rates and the Economy: A Mercatus Colloquium Low Interest Rates and the Economy: A Mercatus Colloquium
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Are Low Interest Rates Natural or Artificial?
- | Low Interest Rates and the Economy: A Mercatus Colloquium Low Interest Rates and the Economy: A Mercatus Colloquium
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
The Fall and Future Rise of Interest Rates
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Low Interest Rates and the Economy: A Mercatus Colloquium
- | Monetary Policy Monetary Policy
- | Working Papers Working Papers
The Myth of Central Bank Independence
- | Monetary Policy Monetary Policy
- | Working Papers Working Papers
Nominal GDP Targeting and the Taylor Rule on an Even Playing Field
- | Monetary Policy Monetary Policy
- | Working Papers Working Papers
The Monetary Policy Origins of the Eurozone Crisis
- | Technology and Innovation Technology and Innovation
- | Books Books
Bitcoin: A Primer for Policymakers
Second Edition

- | Monetary Policy Monetary Policy
- | Journal Articles Journal Articles
Nudging the Fed Toward a Rules-Based Policy Regime
- | Monetary Policy Monetary Policy
- | Books Books
The Midas Paradox: Financial Markets, Government Policy Shocks, and the Great Depression

- | Monetary Policy Monetary Policy
- | Data Visualizations Data Visualizations
“Bailout Barometer” Shows the Growing Risk to Taxpayers
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
"Timely, Targeted, and Temporary?" An Analysis of Government Expansions over the Past Century
- | Academic & Student Programs Academic & Student Programs
- | Monetary Policy Monetary Policy
- | Working Papers Working Papers
An Introduction to Monetary Policy Rules
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
The Federal Reserve’s Exit Strategy: Looming Inflation or Controllable Overhang?
- | Financial Markets Financial Markets
- | Research Papers Research Papers
Inflation Targeting: A Monetary Policy Regime Whose Time Has Come and Gone
- | Technology and Innovation Technology and Innovation
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Bitcoin: Manual básico (para legisladores y diseñadores de políticas)

Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
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- | Macro Musings Macro Musings
Steven Kamin on the Global Influence of Fed Policy and the U.S. Dollar
Although the effects of Fed policy can be felt throughout the world, its impacts may not be as pronounced in most emerging markets.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Chris Hughes on the Legacy of Arthur Burns and its Implications for Macro Policy Today
Although monetary policy is known as the primary tool for combating inflation, Arthur Burns believed that broader policy measures could be useful for reliving price pressures throughout the economy.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Peter Stella on the Quasi-Fiscal Implications of Central Bank Crisis Intervention
Transferring liabilities from the Fed to the Treasury is one way the US could more effectively manage central bank debt during times of crises.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Christina Skinner on Central Bank Digital Currency as New Public Money
Sovereignty, property, and privacy are a few avenues through which CBDC may forever alter monetary rights.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Gianluca Benigno on the Basics and Policy Functionality of R** and the Dollar’s Imperial Circle
As financial stability considerations become more important, using r** as a policy tool could play a key role in measuring financial stress throughout the macroeconomy.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Dan McDowell on *Bucking the Buck: US Financial Sanctions and the International Backlash Against the Dollar*
Financial sanctions have become a powerful foreign policy tool for the US, but fears of dependence and coercion may cause an international pivot toward de-dollarization.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Jeanna Smialek on *Limitless: The Federal Reserve Takes on a New Age of Crisis*
The Federal Reserve has already evolved considerably throughout the 21st century, and the role it now plays in the macroeconomy is more critical than it has ever been.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Nathan Tankus on the Future of MMT and How to Avoid U.S. Debt Default
With the debt ceiling deadline fast approaching, there are a number of creative solutions the government could consider to avoid macroeconomic disaster.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Brian Sack on the Fed’s Balance Sheet and How to Improve the Floor Operating System
By making a few tweaks to the Overnight Reverse Repo Facility, the Fed could greatly improve the functioning of its current operating system.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mark Calabria on *Shelter From the Storm: How a COVID Mortgage Meltdown Was Averted*
Through a combination of mortgage and renter relief programs, the FHFA aided millions of individuals and families during the worst of the COVID crisis.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
BONUS: George Hall on Financing World War II and Managing Post-War Debt
As the US debt-to-GDP ratio continues to rise, the post-World War II period could offer important lessons for policymakers on how to reduce the national debt.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
George Hall on the History of the U.S. National Debt and Government Financing
Between the use of bonds, taxes, and debt, history can teach us many lessons about how to successfully and unsuccessfully finance government ventures.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Bill Nelson on the Fed’s Discount Window Lending, the Overnight Reverse Repo Facility, and the Shifting Size of the Fed’s Balance Sheet
One simple adjustment to the Overnight Reverse Repo Facility could help the Fed more effectively manage its balance sheet reduction moving forward.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Kate Judge and Peter Conti-Brown on the Lessons Learned from the 2023 Banking Panic
Improving bank supervision and reforming deposit insurance are just a few ways to enhance financial regulation and restore faith in the banking system.

- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Brian Riedl on the Current and Future Outlook for US Public Finance and Budget Reform
As the US continues to face higher interest rates, ballooning public debt, and runaway entitlement spending, budget reform must become a top policy priority.

- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Today’s Fed Decision on Interest Rates | MSNBC's "Meet the Press Now"
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Steven Kelly on the Silicon Valley Bank Collapse and Its Implications for Financial Policy
As the Fed and regulators deal with the Signature and Silicon Valley Bank failures, the future of financial stability policy now hangs in the balance.

- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Skyrocketing National Debt | American Radio Journal
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
The Failure of SVB | American Radio Journal
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Derek Tang on the Present and Future Landscape for Fed Policy and Politics
From personnel changes to the next framework review, the Fed has a lot on its plate for the remainder of 2023 and beyond.

Latest work in Monetary Policy
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Are Recessions about Employment?
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Please Abolish the Fed's Balance Sheet
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Block out the Noise: Here's the 2019 Economic Outlook
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Now You Want Easier Money
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Bad Advice from the Financial Times
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Bad Advice from the Financial Times
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Natural Interest Rate Bleg
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
How Close Is the Fed to a Corridor System?
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Is the Fed Holding Down Growth?
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Rate Hike Controversy Shows Why Monetary Policy Should Be Market-Driven

- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
A New Paper on the Fed's Floor System
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
No Matter How Mad President Trump Gets at Fed, the Bank Must Remain Independent
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
What About The TIPS Spread?
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
What Kind of Fed 'Put'?
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
David Beckworth on the Floor vs. Corridor System
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
When Should We Start Worrying About Inflation?
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Rules Would Make Monetary Policy More Transparent, Independent

- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Michael Derby Goes Behind-The-Scenes on Recent Fed News
A Macro Musings Transcript

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- | Expert Commentary Expert Commentary
Do Low Interest Rates Stimulate Housing?
- | Housing Housing
- | Expert Commentary Expert Commentary
Research Round-Up: North Dakota's Economic Success and Monetary Policy Futures Markets
