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
- | Policy Briefs Policy Briefs
Enhancing FOMC Transparency: Making Implicit Monetary Policy Rules Explicit
The FOMC communicates the consistency in its monetary policy to markets but not the public. In order to be more accountable and transparent, the FOMC should communicate that consistency to the public and Congress as well.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
James Bullard on FAIT, Nominal GDP Targeting, and the Fed’s Upcoming Framework Review
As the Fed approaches its next framework review, there are numerous modifications the central bank could consider to further enhance its current monetary policy framework.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Josh Lipsky on Financial Statecraft, Cross-border Payments, and the Global Status of the Dollar
Financial statecraft has been a crucial economic and geopolitical instrument in U.S. foreign policy and will continue to serve as an essential tool in the new era of digital currencies.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
The Federal Reserve Should Let Exchange Rates Float | Discourse
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Steven Kelly on the Financial Stability Implications of the Discount Window
In order to prevent future financial instability, the Fed should consider further action in addressing the elephant in the room that is the discount window.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Money Supply and Inflation: How They Relate | AIER’s “Econception”
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Ernie Tedeschi on Full Employment, the US Safe Harbor Premium, and the Current Path of R-Star
Although the US currently enjoys the benefits of a safe harbor investment premium, there are numerous potential risks that could arise that would greatly threaten the future health of the US economy.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Jeffrey Lacker on Fed Governance and Learning from the Recent Inflation Surge
To prevent future policy errors, the Fed should aim to be more transparent about reviewing and acknowledging past mistakes.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mickey Levy on How to Reboot Fed Policy Ahead of its Upcoming Framework Review
As the Fed approaches its next framework review period, there are a number of changes that the central bank can make to improve how it evaluates and executes monetary policy.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
CPI and Fed Policy Meeting In Focus | CNBC
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
I’m Not Expecting Any Rate Cuts This Year | BNN Bloomberg
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Lars Christensen on AI and its Impact on Monetary Policy and the Broader Field of Economics
As AI technology continues to progress, its effects may forever change the world of economics and economic policymaking.
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
What the Fed Needs to Do to Control Inflation and Stabilize the Economy
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Ryan Bourne on *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy*
In an era plagued by high inflation and its pernicious economic effects, it’s more important than ever to dispel the many false notions surrounding prices and the crucial role they play in the broader economy.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
George Selgin on Fed Master Accounts, Central Bank Independence, and the Fed’s Balance Sheet
George Selgin rejoins David Beckworth to discuss a variety of important developments in the monetary and fiscal policy space.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Dollarization or Not, Argentina’s Future Will Be Expensive | Bloomberg Opinion
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Roberto Perli on the Past, Present, and Future of the Fed’s Balance Sheet
Slowing the pace of its balance sheet runoff is an important step the Fed can take to more effectively manage risks while allowing the banking system to adapt to lower levels of reserves.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
How To Stop Mission Creep at the Federal Reserve | Discourse
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q1 2024
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mary Daly on Fed Policy, the Economic Impacts of AI, and the Future of the Fed’s Framework
As the Fed closes in on its next framework review period, properly balancing inflation risks with labor market stability remains the core mission of the central bank moving forward.
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Enhancing FOMC Transparency: Making Implicit Monetary Policy Rules Explicit
The FOMC communicates the consistency in its monetary policy to markets but not the public. In order to be more accountable and transparent, the FOMC should communicate that consistency to the public and Congress as well.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
James Bullard on FAIT, Nominal GDP Targeting, and the Fed’s Upcoming Framework Review
As the Fed approaches its next framework review, there are numerous modifications the central bank could consider to further enhance its current monetary policy framework.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Josh Lipsky on Financial Statecraft, Cross-border Payments, and the Global Status of the Dollar
Financial statecraft has been a crucial economic and geopolitical instrument in U.S. foreign policy and will continue to serve as an essential tool in the new era of digital currencies.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
The Federal Reserve Should Let Exchange Rates Float | Discourse
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Steven Kelly on the Financial Stability Implications of the Discount Window
In order to prevent future financial instability, the Fed should consider further action in addressing the elephant in the room that is the discount window.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Money Supply and Inflation: How They Relate | AIER’s “Econception”
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Ernie Tedeschi on Full Employment, the US Safe Harbor Premium, and the Current Path of R-Star
Although the US currently enjoys the benefits of a safe harbor investment premium, there are numerous potential risks that could arise that would greatly threaten the future health of the US economy.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Jeffrey Lacker on Fed Governance and Learning from the Recent Inflation Surge
To prevent future policy errors, the Fed should aim to be more transparent about reviewing and acknowledging past mistakes.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mickey Levy on How to Reboot Fed Policy Ahead of its Upcoming Framework Review
As the Fed approaches its next framework review period, there are a number of changes that the central bank can make to improve how it evaluates and executes monetary policy.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
CPI and Fed Policy Meeting In Focus | CNBC
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
I’m Not Expecting Any Rate Cuts This Year | BNN Bloomberg
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Lars Christensen on AI and its Impact on Monetary Policy and the Broader Field of Economics
As AI technology continues to progress, its effects may forever change the world of economics and economic policymaking.
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
What the Fed Needs to Do to Control Inflation and Stabilize the Economy
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Ryan Bourne on *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy*
In an era plagued by high inflation and its pernicious economic effects, it’s more important than ever to dispel the many false notions surrounding prices and the crucial role they play in the broader economy.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
George Selgin on Fed Master Accounts, Central Bank Independence, and the Fed’s Balance Sheet
George Selgin rejoins David Beckworth to discuss a variety of important developments in the monetary and fiscal policy space.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Dollarization or Not, Argentina’s Future Will Be Expensive | Bloomberg Opinion
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Roberto Perli on the Past, Present, and Future of the Fed’s Balance Sheet
Slowing the pace of its balance sheet runoff is an important step the Fed can take to more effectively manage risks while allowing the banking system to adapt to lower levels of reserves.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
How To Stop Mission Creep at the Federal Reserve | Discourse
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q1 2024
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mary Daly on Fed Policy, the Economic Impacts of AI, and the Future of the Fed’s Framework
As the Fed closes in on its next framework review period, properly balancing inflation risks with labor market stability remains the core mission of the central bank moving forward.
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mickey Levy on How to Reboot Fed Policy Ahead of its Upcoming Framework Review
As the Fed approaches its next framework review period, there are a number of changes that the central bank can make to improve how it evaluates and executes monetary policy.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
CPI and Fed Policy Meeting In Focus | CNBC
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
I’m Not Expecting Any Rate Cuts This Year | BNN Bloomberg
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Lars Christensen on AI and its Impact on Monetary Policy and the Broader Field of Economics
As AI technology continues to progress, its effects may forever change the world of economics and economic policymaking.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Ryan Bourne on *The War on Prices: How Popular Misconceptions about Inflation, Prices, and Value Create Bad Policy*
In an era plagued by high inflation and its pernicious economic effects, it’s more important than ever to dispel the many false notions surrounding prices and the crucial role they play in the broader economy.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
George Selgin on Fed Master Accounts, Central Bank Independence, and the Fed’s Balance Sheet
George Selgin rejoins David Beckworth to discuss a variety of important developments in the monetary and fiscal policy space.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Roberto Perli on the Past, Present, and Future of the Fed’s Balance Sheet
Slowing the pace of its balance sheet runoff is an important step the Fed can take to more effectively manage risks while allowing the banking system to adapt to lower levels of reserves.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Mary Daly on Fed Policy, the Economic Impacts of AI, and the Future of the Fed’s Framework
As the Fed closes in on its next framework review period, properly balancing inflation risks with labor market stability remains the core mission of the central bank moving forward.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Dan Katz and Stephen Miran on Reforming the Federal Reserve’s Governance
Restructuring the terms of Fed board members and bolstering the relative power of reserves banks are just a few ways to improve the accountability and legitimacy of Fed governance.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Richard Clarida on FAIT, R-Star, and the Future of the Fed’s Framework
The Fed should consider improving its strategic communication while more effectively anchoring future inflation expectations as it closes in on its next framework review period.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Saleha Mohsin on *Paper Soldiers: How the Weaponization of the Dollar Changed the World Order*
The global strength of the dollar has provided many economic and geopolitical benefits for the US, but it has also come with numerous costs, both domestically and internationally.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Josh Hendrickson on the Treasury Standard and Global Dollar Dominance
From the collapse of the Bretton Woods system to the present, the US has continued to further implement its Treasury Standard across the globe as an effective economic and geopolitical tool.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Mortgage Rates Creep Higher, Carmax Stock Plunges | Yahoo! Finance Live
- | 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.