Macro Musings with David Beckworth

Ed Nelson is a Senior Advisor in the Monetary Affairs Division of the Board of Governors of the Federal Reserve System. Ed has also previously been a professor and has worked at the St. Louis Federal Reserve Bank, as well as the Bank of England. Returning to the podcast, Ed re-joins Macro Musings to talk about his new book, *Milton Friedman and the Economic Debate in the United States: 1932-1972*. Ed and David specifically discuss the life and work of Milton Friedman, as they explore his journey into monetarism, his contributions to the quantity theory of money, how he envisioned a money supply growth rule, and more. Transcript for the episode can be found here. Ed's website: https://sites.google.com/site/edwardnelsonresearch/ Ed's Fed profile: https://www.federalreserve.gov/econres/edward-nelson.htm Related Links: *Milton Friedman and the Economic Debate in the United States, 1932-1972: Volume 1* by Edward Nelson https://press.uchicago.edu/ucp/books/book/chicago/M/bo47674126.html *Milton Friedman and the Economic Debate in the United States, 1932-1972: Volume 2* by Edward Nelson https://press.uchicago.edu/ucp/books/book/chicago/M/bo47674466.html *A Monetary and Fiscal Framework for Economic Stability* by Milton Friedman https://www.jstor.org/stable/1810624?seq=1 *Some Unpleasant Monetarist Arithmetic* by Neil Wallace and Thomas Sargent https://www.minneapolisfed.org/research/quarterly-review/some-unpleasant-monetarist-arithmetic *Money Mischief: Episodes in Monetary History* by Milton Friedman https://www.journals.uchicago.edu/doi/10.1086/261872 David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Dan Awrey is a professor of law at Cornell Law School, a financial markets regulation scholar, and the editor of the Journal of Financial Regulation. Dan joins David on Macro Musings to discuss how to promote greater financial innovation, financial inclusion, and alleviate the "too big to fail" problem by safely unbundling banking, money, and payments in our financial system. Dan and David also go on to discuss tensions in the global shadow banking system, the history of how banks evolved to play such a central role in our financial system, how the law has reinforced this bundling of the banks' roles, and much more. Transcript of the episode can be found here. Dan's Twitter: @DanAwrey Dan's Cornell Law Profile: https://www.law.columbia.edu/faculty/daniel-awrey Related Links: *Unbundling Banking, Payments and Money* by Dan Awrey https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3776739 *Brother, Can You Spare a Dollar? Designing an Effective Framework for Foreign Currency Liquidity Assistance* by Dan Awrey https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2955763 *The Money Problem* by Morgan Ricks https://press.uchicago.edu/ucp/books/book/chicago/M/bo22438821.html David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Chris Russo is a Monetary Policy Program Research Fellow at the Mercatus Center at George Mason University and has previously worked at the New York Federal Reserve Bank. He joins Macro Musings to talk about the work he is doing on tensions between the Fed and the Treasury's management of their respective balance sheets. Specifically, David and Chris discuss what these tensions are and what fixes can be implemented to ameliorate the existing plumbing issues. Transcript for the episode can be found here. Chris's Mercatus profile: https://www.mercatus.org/scholars/christopher-russo Chris's Github site: https://christopher-russo.github.io/about/ David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Saule Omarova is a professor of law and the director of the Jack Clarke Program on the Law and Regulation of Financial Institutions and Markets at Cornell University. Saule joins Macro Musings to talk about the prospects of an emergency fiscal facility, as well as a broader vision for a National Investment Authority. Specifically, Saule and David discuss the need for a third public finance agency, what the mandate of such an authority would be, and how the agency would be structured and held accountable. Saule also answers common objections to her vision such as the potential institutional redundancies, as well as how to prevent cronyism and excessive politicization. Transcript for the episode can be found here. Saule's Twitter: @STOmarova Saule's Cornell profile: https://www.lawschool.cornell.edu/faculty/bio_saule_omarova.cfm Related Links: *Data For Progress: A National Investment Authority* https://www.dataforprogress.org/a-national-investment-authority *Why We Need a National Investment Authority* by Saule Omarova https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3566462 *The People's Ledger: How to Democratize Money and Finance the Economy* by Saule Omarova https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3715735 *What Kind of Finance Should There Be?* by Saule Omarova https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3544103 *White Paper: A National Investment Authority* by Saule Omarova and Robert C. Hockett https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3125533 *The Money Problem* by Morgan Ricks https://www.amazon.com/Money-Problem-Rethinking-Financial-Regulation/dp/022633032X David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Pat Parkinson is a senior fellow at the Bank Policy Institute and a 30-year veteran of the Federal Reserve system, where he served as director of the Division of Banking Supervision and Regulation. During that time, he was also a member of the Basel Committee on Banking and advised Alan Greenspan, Ben Bernanke, and Tim Geithner on financial market issues. Pat joins Macro Musings to discuss the treasury market meltdown in March 2020, as well as what we can do moving forward to avoid this issue from happening again. Specifically, David and Pat outline the implementation of a standing repo facility, changes to the supplemental leverage ratio, expanded central clearing, and increased data collection as possible solutions to this problem. Transcript for the episode can be found here. Pat's BPI profile: https://bpi.com/people/pat-parkinson/ Related Links: *Enhancing Liquidity of the U.S. Treasury Market Under Stress* by Nellie Liang and Pat Parkinson https://www.brookings.edu/research/enhancing-liquidity-of-the-u-s-treasury-market-under-stress/ *US Treasuries: The Lessons from March's Market Meltdown* by Colby Smith and Robin Wigglesworth https://www.ft.com/content/ea6f3104-eeec-466a-a082-76ae78d430fd David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Kathy Bostjancic is the chief US financial economist at Oxford Economics and joins Macro Musings to discuss the outlook for monetary and fiscal policy in 2021 as well as in financial markets. Specifically, David and Kathy discuss the prospects for Fed policy and personnel under the Biden Administration, immediate concerns facing the Fed as the COVID pandemic continues into 2021, what steps the Fed can take to make their new AIT framework credible, how large scale asset purchases have impacted asset prices and the real economy, and much more. Transcript for the episode can be found here. Kathy's Twitter: @BostjancicKathy Kathy's Oxford Economics profile: https://www.oxfordeconomics.com/about-us/staff/267824/kathy-bostjancic David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Ricardo Reis is a professor of economics at the London School of Economics and a returning guest to the podcast. Ricardo rejoins Macro Musings to talk about central bank swap lines, the importance of fiscal sustainability, and the outlook for inflation in advanced economies. David and Ricardo also discuss safe asset alternatives, and how to think about inflation, debt, and deficits in a more nuanced way. Transcript for the episode can be found here. Ricardo's Twitter: @R2Rsquared Ricardo's LSE profile: https://personal.lse.ac.uk/reisr/ Related Links: *Central Bank Swap Lines* by Saleem Bahaj and Ricardo Reis https://voxeu.org/article/central-bank-swap-lines *Central Bank Swap Lines During the Covid-19 Pandemic* by Saleem Bahaj and Ricardo Reis https://personal.lse.ac.uk/reisr/papers/20-covicbswaps.pdf *The Constraint on Public Debt When r https://iepecdg.com.br/wp-content/uploads/2020/12/mpkrg-201112.pdf *Inflating Away the Public Debt? An Empirical Assessment* by Jens Hilscher, Alon Raviv, and Ricardo Reis https://www.nber.org/system/files/working_papers/w20339/w20339.pdf *The New Global Financial Safety Net: Struggling for Coherent Governance in a Multipolar System* by Beatrice Weder di Mauro and Jeromin Zettelmeyer https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2946452 David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Robert Kaplan is the president and CEO of the Federal Reserve Bank of Dallas. Previously, he was a professor and Associate Dean at Harvard Business School, and prior to that was a Vice Chairman of Goldman Sachs. Robert is a returning guest to the podcast, and he rejoins Macro Musings to discuss the Fed's new framework, inflation, interest rates and more. Specifically, David and Robert talk about COVID's impact on FOMC operations, how demographic trends are impacting productivity, the Fed's expanding balance sheet, its average inflation targeting framework, and more. Transcript for the episode can be found here. Robert's Twitter: @RobSKaplan Robert's Dallas Fed profile: https://www.dallasfed.org/en/fed/bios/kaplan.aspx David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Daniel Griswold is a senior affiliated scholar at the Mercatus Center and a nationally recognized expert on trade and immigration policy. Dan is also a returning guest is to the podcast, and joins Macro Musings to talk about immigration policy and the outlook for trade policy with the new Biden Administration. Specifically, David and Dan discuss the major demographic decline in the US, and how greater levels of immigration and can solve many of America's economic concerns. Transcript for the episode can be found here. Dan's Twitter: @danielgriswold Dan's Mercatus profile: https://www.mercatus.org/scholars/daniel-griswold Related Links: *More Immigration Needed to Offset COVID-19 and America's Demographic Decline* by Daniel Griswold https://www.mercatus.org/publications/trade-and-immigration/more-immigration-needed-offset-covid-19-and-america%E2%80%99s-demographic *Half a Million Fewer Children? The Coming COVID Baby Bust* by Melissa Kearney and Phillip Levine https://www.brookings.edu/research/half-a-million-fewer-children-the-coming-covid-baby-bust/ *World Population Prospects 2019: Highlights* by the Department of Economic and Social Affairs, Population Division at the United Nations https://population.un.org/wpp/Publications/Files/WPP2019_Highlights.pdf *The Next Hundred Million: America in 2050* by Joel Kotkin https://www.penguinrandomhouse.ca/books/298866/the-next-hundred-million-by-joel-kotkin/9781101195703 *Fertility, Mortality, Migration, and Population Scenarios for 195 Countries and Territories from 2017 to 2100: A Forecasting Analysis for the Global Burden of Disease Study* by Stein Emil Vollset et al. https://www.thelancet.com/article/S0140-6736(20)30677-2/fulltext *Clashing over Commerce: A History of US Trade Policy* by Douglas Irwin https://press.uchicago.edu/ucp/books/book/chicago/C/bo24475328.html David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

Sam Bell is the policy director of Employ America, a think tank dedicated to having the economy run at full employment levels. Sam is also known on FOMC Twitter as an influencer when it comes to nominations for the Board of Governors. Sam returns to Macro Musings to talk about what 2021 likely has in store for the Fed. Specifically, Sam and David discuss Fed Vice Chair Richard Clarida's vision for temporary price level targeting, the prospects of Jay Powell and Lael Brainard (and others) for the next Fed chair, the significance of Janet Yellen's treasury secretary appointment, and the political pressures facing the Fed in 2021. Transcript for the episode can be found here. Sam's Twitter: @sam_a_bell About Employ America: https://employamerica.org/about/ Related Links: *Monetary Policy Strategies for a Low-Rate Environment* by Ben Bernanke, Michael Kiley, and John Roberts https://www.aeaweb.org/articles?id=10.1257/pandp.20191082 David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth