Macro Musings with David Beckworth

Sam Schulhofer-Wohl, Senior Vice President at the Federal Reserve Bank of Dallas, shares insights on recent Treasury market reforms and evolving central bank systems. He highlights the resilience of the Treasury market amid disruptions, emphasizing the growing role of nonbank institutions. The discussion also delves into the importance of central clearing for market transparency and stability. Schulhofer-Wohl navigates the complexities of bank capital regulations and concludes with the central banks' pivotal role in monetary policy through reserves and government securities.

Andy Levin, an advisor to global central banks and an economics professor at Dartmouth, returns to discuss the critical need for an independent inspector general at the Federal Reserve. He emphasizes the importance of transparency and accountability to maintain public trust in the Fed's operations. The conversation also touches on the challenges of the Federal Reserve's costly renovations, comparing them to historic landmarks, and highlights the urgent need for oversight in spending. Levin's insights underscore how independent evaluations can strengthen central banking practices.

Matthew Pines, the executive director of the Bitcoin Policy Institute, dives into the exciting intersection of Bitcoin, national security, and global monetary policy. He discusses Bitcoin's transition from an illicit tool to a strategic asset in U.S. policy. The conversation also covers stablecoin regulation amid evolving geopolitics, exploring the dollar's future and the potential of AI in reshaping monetary dynamics. Pines highlights the need for collaboration among democracies to counter geopolitical shifts, emphasizing the transformative power of digital currencies.

Peter Conti-Brown, a historian and legal scholar of the Federal Reserve, and Sean Vanatta, a financial history expert, explore their new book on bank supervision in America. They draw intriguing parallels between powerlifting and economic policy, highlighting concepts like hysteresis. The discussion also delves into the implications of the Supreme Court's Trump v. Wilcox ruling on the Fed's independence. Listeners will discover the evolution of bank regulation and the challenges of oversight in light of recent banking crises.

George Selgin, a senior fellow at the Cato Institute and author of *False Dawn*, delves into the intricate history of the Great Depression and its monetary implications today. He questions common beliefs about the New Deal, revealing its limited effectiveness in economic recovery. Selgin also discusses the gold standard's restrictive role during the Depression and critiques the Reconstruction Finance Corporation and the National Recovery Administration's mixed impact on revitalization. His insights highlight valuable lessons that resonate with current macroeconomic challenges.

Daniel Bunn, President and CEO of the Tax Foundation, dives into pressing fiscal issues facing the U.S. government. He discusses the history and importance of tax models in shaping effective policies. Bunn highlights the economic threats posed by tariffs and critiques current budget reconciliation efforts. If he were president, he outlines radical reforms to the tax code. The conversation also explores the implications of entitlement spending and the urgent need for sustainable fiscal strategies to manage national debt.

Luca Fornaro, a senior researcher at CREI and a professor at UPF and the Barcelona School of Economics, dives into the intricacies of hysteresis and its impact on economic growth. He discusses how downturns can cause long-term damage to productivity, leading to stagnation traps. The conversation also explores the interconnectedness of business cycles and long-term growth, as well as the role of population growth and innovation in driving economic development. Fornaro advocates for smart macroeconomic policies to stimulate recovery and address supply shocks.

Adam Ozimek, Chief Economist at the Economic Innovation Group, shares insights on high-skilled immigration reform, emphasizing its critical role in economic growth. He discusses the inefficiencies in the current green card system and proposes a new Heartland Visa to rejuvenate struggling areas. Adam also tackles misconceptions about job scarcity linked to immigration. Additionally, he analyzes the impacts of Trump’s trade war, highlighting the disconnect between public sentiment and governmental narratives on tariffs. A fascinating dive into pressing economic issues!

Skanda Amarnath, the executive director of Employ America, dives into the Federal Reserve's intricate monetary framework. He discusses the implications of Humphrey's Executor and the Fed's ongoing Framework Review. The conversation highlights the case for nominal GDP targeting as a fresh approach to inflation management. Skanda emphasizes the vital need for the Fed's independence amidst political pressures, and explores the importance of clear communication in navigating economic challenges. A fascinating look at the future of monetary policy!

Andy Levin, a Dartmouth College economics professor and former advisor to central banks, discusses vital insights on holding the Federal Reserve accountable. He emphasizes the importance of transparency and external reviews to enhance the Fed's legitimacy. The conversation delves into the staffing debate, revealing inconsistencies in compensation compared to other federal positions. Levin also critiques the Fed's forecasting failures and its extraordinary independence, calling for reforms to improve oversight and communication with the public.