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.
Featured
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Ruth Judson on Chasing Dollars Around the World
From global cash hoards to counterfeiters to capital flow data, mapping the dollar’s worldwide journey
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Reforming the Federal Reserve: Will Kevin Warsh Make the Fed Transparent and Accountable?
How proposed reforms could reshape FOMC deliberation, policy rules, and oversight
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Measuring Macroeconomic Policy: the NGDP Gap
The NGDP gap is a benchmark measure created by the Mercatus Center at George Mason University. It helps assess whether macroeconomic policy is expansionary or contractionary.
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Chris Meissner on the History of Globalization
Has the US taken a detour or made a permanent shift away from globalization?
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Jesús Fernández-Villaverde on the Quandary of Global Demographic Decline
Can AI fix the problem of our shrinking population?
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Measuring Macroeconomic Policy: the NGDP Gap
The NGDP gap is a benchmark measure created by the Mercatus Center at George Mason University. It helps assess whether macroeconomic policy is expansionary or contractionary.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Three Kinds of Fed-Treasury Accords | Macroeconomic Policy Nexus (Substack)
- | Monetary Policy Monetary Policy
- | Feature Feature
Sound Money and Growth or Inflation and Social Unrest in the Historical Context | Echelon
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Ruth Judson on Chasing Dollars Around the World
From global cash hoards to counterfeiters to capital flow data, mapping the dollar’s worldwide journey
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Bill Nelson on the Future of the Fed’s Balance Sheet
Is the Fed profitable again?
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Jesús Fernández-Villaverde on the Quandary of Global Demographic Decline
Can AI fix the problem of our shrinking population?
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Measuring Macroeconomic Policy: the NGDP Gap
The NGDP gap is a benchmark measure created by the Mercatus Center at George Mason University. It helps assess whether macroeconomic policy is expansionary or contractionary.
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Three Kinds of Fed-Treasury Accords | Macroeconomic Policy Nexus (Substack)
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Stablecoins Behave Like Money, But Are They Built Like It? | Macroeconomic Policy Nexus
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Defending Fed Independence Through Transparency, Accountability, and Rule-Based Monetary Policy
An independent Fed can anchor inflation expectations and resist political pressure
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Case for a Smaller Federal Reserve Asset Portfolio
A smaller Fed balance sheet would reduce inflation risk and fiscal dominance as debt climbs
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Andrew Martinez on the Art of Forecasting
What does the NGDP Gap reveal about monetary policy?
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Working Papers Working Papers
How Much Did Macroeconomic Policy Matter? A New Decomposition of the US Inflation Surge of 2021–22
Inflation surged as demand ran hot—NGDP trends offer a tool for prevention
- | Monetary Policy Monetary Policy
- | Working Papers Working Papers
The Expectations Gap: An Alternative Measure of Economic Slack
Latest work in Monetary Policy
- | Academic & Student Programs Academic & Student Programs
- | Financial Markets Financial Markets
- | Essays Essays
Market Monetarism: Roadmap to economic prosperity
Marcus Nunes and Benjamin Cole
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Reforming the Federal Reserve: Will Kevin Warsh Make the Fed Transparent and Accountable?
How proposed reforms could reshape FOMC deliberation, policy rules, and oversight
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Measuring Macroeconomic Policy: the NGDP Gap
The NGDP gap is a benchmark measure created by the Mercatus Center at George Mason University. It helps assess whether macroeconomic policy is expansionary or contractionary.
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Defending Fed Independence Through Transparency, Accountability, and Rule-Based Monetary Policy
An independent Fed can anchor inflation expectations and resist political pressure
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Measuring Macroeconomic Policy: the NGDP Gap
The NGDP gap is a benchmark measure created by the Mercatus Center at George Mason University. It helps assess whether macroeconomic policy is expansionary or contractionary.
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Defending Fed Independence Through Transparency, Accountability, and Rule-Based Monetary Policy
An independent Fed can anchor inflation expectations and resist political pressure
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Case for a Smaller Federal Reserve Asset Portfolio
A smaller Fed balance sheet would reduce inflation risk and fiscal dominance as debt climbs
- | Federal Reserve Framework Review Federal Reserve Framework Review
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
A Critique of Lars Svensson’s Arguments Against NGDP Targeting
Lars Svensson’s conclusion that nominal GDP targeting (NGDPT) is inferior to average inflation targeting rested upon several subtle fallacies, so the Fed should use its current framework review to reconsider NGDPT
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Policy Spotlights Policy Spotlights
Closing the Fed’s Oversight Gap
For more than a century the Federal Reserve has had only minimal oversight. Here are options for strengthening the Fed's accountability.
- | Monetary Policy Monetary Policy
- | Policy Spotlights Policy Spotlights
A Rule-Based Monetary Policy
- | Monetary Policy Monetary Policy
- | Policy Spotlights Policy Spotlights
The Relationship between Interest Rates and Monetary Policy
- | Monetary Policy Monetary Policy
- | Policy Spotlights Policy Spotlights
The Relationship between Interest Rates and Monetary Policy
- | Monetary Policy Monetary Policy
- | Policy Spotlights Policy Spotlights
How the Fed Controls Monetary Policy
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Ruth Judson on Chasing Dollars Around the World
From global cash hoards to counterfeiters to capital flow data, mapping the dollar’s worldwide journey
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Bill Nelson on the Future of the Fed’s Balance Sheet
Is the Fed profitable again?
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Neha Narula, Anders Brownworth, and Daniel Aronoff on Understanding Stablecoins in the GENIUS Era
Has the stablecoin horse left the barn in the US?
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Dan Awrey on the Future of the U.S. Payments System in a Digital World
Was the GENIUS act actually genius when it comes to payments?
- | Monetary Policy Monetary Policy
- | Mercatus Podcasts Mercatus Podcasts
- | Macro Musings Macro Musings
Martha Gimbel on the Impact of AI and the Trade War on Labor Markets
What can elevator operators can teach us about AI?
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Public Interest Comments Public Interest Comments
Comments on Docket No. OP-1877, Request for Information and Comment on Reserve Bank Payment Account Prototype
How the Fed can implement the RBPA in an efficient manner that supports liquidity under stress
- | Financial Markets Financial Markets
- | Federal Testimonies Federal Testimonies
Legislation to Reform the Federal Reserve on Its 100-year Anniversary
Testimony Before the House Committee on Financial Services Committee
- | Monetary Policy Monetary Policy
- | Federal Testimonies Federal Testimonies
Fractional Reserve Banking
Testimony Before the House Subcommittee on Domestic Monetary Policy and Technology
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Three Kinds of Fed-Treasury Accords | Macroeconomic Policy Nexus (Substack)
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
The Stablecoin Interest Fight | FinRegRag
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary