Macro Musings with David Beckworth Scott Sumner on Monetary Policy Confusion in Our Current Policy Debates
Feb 2, 2026
Scott Sumner, monetary economist known for advocating nominal GDP targeting, shares his post-Mercatus work and blogging. He discusses why nominal GDP matters, how QE and Fed strategy shaped recoveries, and critiques the Fed's framework and risks to central bank independence. Short, sharp takes on level targeting, pandemic policy, and why some QE moves were more effective than others.
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Life After Mercatus: Travel And Blogging
- Scott Sumner described travel and his new Substack, The Pursuit of Happiness.
- He said he blogs on monetary macro plus movie reviews and other topics.
Simpler Fed Operating System Improves Policy
- Sumner favors the pre-2008 Fed operating system with a small balance sheet for simplicity and predictability.
- He warns the post-2008 abundant-reserves regime added complexity that contributed to policy mistakes.
Cross-Country Comparison Shows Fed Power
- Comparing U.S. and Europe shows monetary policy differences drove divergent recoveries after the Great Recession.
- Sumner uses that contrast to highlight monetary policy's power even against fiscal headwinds.
