Macro Musings with David Beckworth

Brent Skorup is a senior research fellow at the Mercatus Center where he specializes in transportation technology, telecommunications, aviation, and wireless policy. Brent also serves on the FCC’s broadband deployment advisory committee and the Texas Department of Transportation’s autonomous vehicle task force, and he has recent spoke on the topic of airspace design at the Global Air Traffic Management Conference in Dubai. He joins the show today to talk about the future of transportation, including flying cars and highways in the sky. Brent and David also discuss the concept of auctioning airspace, the macroeconomic implications of technological innovation, and how to build or improve infrastructure for autonomous vehicles in the future.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/02102020/brent-skorup-autonomous-vehicles-flying-cars-and-airspace-scarce-resource   Brent’s Twitter: @bskorup Brent’s Mercatus profile: https://www.mercatus.org/scholars/brent-skorup   Related Links:   *Your Flying Car Will Be Here Sooner Than You Think* by Brent Skorup https://www.wsj.com/articles/your-flying-car-will-be-here-sooner-than-you-think-1542327046   *Auctioning Airspace* by Brent Skorup https://www.mercatus.org/system/files/skorup-auctioning-airspace-mercatus-working-paper-v1.pdf   *Smart Cities, Dumb Infrastructure* by Korok Ray & Brent Skorup https://www.mercatus.org/publications/technology-and-innovation/smart-cities-dumb-infrastructure   *Auto Purchase Trends, Mobility as a Service, and Autonomous Vehicle Adoption* by Brent Skorup https://www.mercatus.org/bridge/commentary/auto-purchase-trends-mobility-service-and-autonomous-vehicle-adoption   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

Marc Lavoie is a professor of economics at the University of Ottawa and an author a recent article on the Bank of Canada’s operating system. Marc is also the coauthor of a popular textbook titled, *Monetary Economics: An integrated Approach to Credit, Money, Income, Production, and Wealth.* He joins the show today to talk about these works and more. David and Marc also discuss differences between post-Keynesian and mainstream macroeconomics, the history and defining characteristics of Canada’s corridor operating system, and what ideal central bank policy might look like for Canada in the future.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/02032020/marc-lavoie-canadian-central-bank-policy-real-time-payments-and-post   Marc’s University of Ottawa profile: https://uniweb.uottawa.ca/members/942/profile Marc’s Institute for New Economic Thinking archive: https://www.ineteconomics.org/research/experts/mlavoie   Related Links:   *A System with Zero Reserves and with Clearing Outside of the Central Bank: The Canadian Case* by Marc Lavoie https://www.tandfonline.com/doi/abs/10.1080/09538259.2019.1616922   *Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth* by Wynne Godley and Marc Lavoie https://link.springer.com/book/10.1007/978-1-137-08599-3   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

Joseph Gagnon is a senior fellow at the Peterson Institute for International Economics and formerly, a senior staffer at the Federal Reserve Board of Governors. Joseph is also a returning guest to Macro Musings, and he joins the show today to discuss his recent policy brief titled, “Are Central Banks Out of Ammunition to Fight a Recession? Not quite.” Specifically, David and Joseph discuss the variety of monetary policy tools available to central banks to combat the next recession (with special emphasis on the Federal Reserve, European Central Bank, and Bank of Japan). Joseph also makes the case that the ECB should adopt a formal review of its monetary policy framework.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/01242020/joseph-gagnon-central-banks%E2%80%99-ability-fight-next-recession   Joseph’s Twitter: @GagnonMacro Joseph’s PIIE profile: https://www.piie.com/experts/senior-research-staff/joseph-e-gagnon   Related Links:   *Are Central Banks Out of Ammunition to Fight a Recession? Not Quite.* by Joseph Gagnon & Christopher Collins https://www.piie.com/publications/policy-briefs/are-central-banks-out-ammunition-fight-recession-not-quite   *Priorities for Review of the ECB’s Monetary Policy Strategy* by Jeremie Cohen-Setton, Christopher Collins, and Joseph Gagnon https://www.piie.com/commentary/speeches-papers/priorities-review-ecbs-monetary-policy-strategy   *How Did Quantitative Easing Really Work? A New Methodology for Measuring the Fed's Impact on Financial Markets* by Ramin Toloui https://siepr.stanford.edu/sites/default/files/publications/19-032.pdf   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

To accompany the new year, David Beckworth is joined by the producers of Macro Musings, Marc and Carter, to talk about the highlights of the podcast throughout 2019, including their personal favorite episodes and the top episodes according to listener statistics. They also discuss some of the most important macroeconomic issues and events of the past year, including the yield curve inversion and ensuing recession speculation, the secular decline of interest rates, the Fed’s big 2019 review, and more.   A massive thank you to all of our listeners who have tuned in over the past few years, and we hope you continue to tune in for more exciting content as we navigate through 2020.   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth   Related Links:   Producers’ Top 3 Episodes:   Robert Graboyes: https://www.mercatus.org/bridge/podcasts/05132019/robert-graboyes-monetary-history-small-coins Bryan Cutsinger: https://www.mercatus.org/bridge/podcasts/03292019/civil-war-and-economics-seigniorage Salim Furth: https://www.mercatus.org/bridge/podcasts/06242019/land-use-regulations-rise-nimbyism-and-options-reform   Listeners’ Top 3 Episode:   Peter Stella: https://www.mercatus.org/bridge/podcasts/02182019/peter-stella-debt-safe-assets-and-central-bank-operations Tyler Cowen: https://www.mercatus.org/bridge/podcasts/07222019/tyler-cowen-culture-big-business-united-states Michael Strain: https://www.mercatus.org/bridge/podcasts/03042019/populism-mmt-and-billionaires   David’s Top 3 Episodes:   Donald Kohn: https://www.mercatus.org/bridge/podcasts/02012019/burns-powell Paul Tucker: https://www.mercatus.org/bridge/podcasts/03252019/paul-tucker-central-bank-independence-and-unelected-power Alex Tabarrok: https://www.mercatus.org/bridge/podcasts/09092019/alex-tabarrok-elements-economic-growth-and-decline-dynamism

Eric Sims is the chair of the economics department at the University of Notre Dame and is a research associate with the National Bureau of Economic Research and the Cleveland Federal Reserve Bank. Eric, along with his colleague, Cynthia Wu, have a number of recent papers addressing monetary policy in low interest rate environments, including a keynote paper presented this past summer at the Chicago Fed Conference that was part of the Fed's big review this year. He joins the show today to talk about this work, focusing on the latest developments in New Keynesian modelling and the current state of macroeconomic research. Specifically, David and Eric discuss the Four Equation New Keynesian Model, the Desirability of NGDP Targeting, and the welfare and cyclical implications of moderate trend inflation.   Transcript for the episode: https://www.mercatus.org/bridge/commentary/eric-sims-new-keynesian-modelling-and-future-macroeconomics-low-interest-rate   Eric’s Notre Dame profile: https://www3.nd.edu/~esims1/ Eric’s NBER archive: https://www.nber.org/people/eric_sims   Related Links:   *On the Desirability of Nominal GDP Targeting* by Julio Garin, Robert Lester, & Eric Sims https://www.nber.org/papers/w21420   *The Four Equation New Keynesian Model* by Eric Sims & Jing Cynthia Wu https://www.nber.org/papers/w26067   *Raise Rates to Raise Inflation? Neo-Fisherianism in the New Keynesian Model* by Julio Garin, Robert Lester, & Eric Sims* https://www.nber.org/papers/w22177   *On the Welfare and Cyclical Implications of Moderate Trend Inflation* by Guido Ascari, Louis Phaneuf, & Eric Sims* https://www.nber.org/papers/w21392   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

Peter Conti-Brown is an assistant professor at the Wharton School at the University of Pennsylvania and a nonresident fellow at the Brookings Institution. Peter is also a historian and a legal scholar specializing in the study of the Federal Reserve and is a returning guest to Macro Musings. He joins the show today to talk about his new paper, *Restoring the Promise of Federal Reserve Governance*. Specifically, David and Peter discuss the institutional history of the Federal Reserve Board, the lack of transparency in the Fed appointment process, and why we should consider raising Fed governor salaries in the future.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/01062020/peter-conti-brown-restoring-promise-federal-reserve-governance   Peter’s Twitter: @PeterContiBrown Peter’s Wharton profile: https://lgst.wharton.upenn.edu/profile/petercb/   Related Links:   *Restoring the Promise of Federal Reserve Governance* by Peter Conti-Brown https://www.mercatus.org/system/files/conti-brown-fed-governance-mercatus-working-paper-v1.pdf   *John Williams May Be One of the Best Central Bankers – But That Doesn’t Mean He Should Run the New York Fed* by Peter Conti-Brown https://www.brookings.edu/research/john-williams-may-be-one-of-the-best-central-bankers-but-that-doesnt-mean-he-should-run-the-new-york-fed/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

Josh Galper is the managing principal of Finadium, an independent consultancy in capital markets based out of New York City. He joins the show today as part of a two week special on the Fed and repo markets, as he helps us take a look at recent repo market stress from the private sector. Specifically, David and Josh discuss the current state of US repo markets, key bottlenecks that have arisen in 2019, and a balanced proposal to restoring stability in capital markets.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12232019/josh-galper-current-state-repo-markets-key-bottlenecks-and-balanced   Josh’s Twitter: @Finadium Josh’s Finadium profile: https://finadium.com/josh-galper-mba/   Related Links:   Finadium’s homepage: http://finadium.com Finadium’s magazine: http://securitiesfinancemonitor.com   *US Repo at Year-End 2019: The Hard Choices Ahead* by Josh Galper https://finadium.com/finadium-us-repo-at-year-end-2019-the-hard-choices-ahead/   *Are New Repo Participants Gaining Ground?* by Adam Copeland, Ira Selig, & Anya Tarascina https://libertystreeteconomics.newyorkfed.org/2019/04/are-new-repo-participants-gaining-ground.html   Repo week episode one: *George Selgin on Repo Market Stress, Fed Balance Sheet Volatility, and a Standing Repo Facility* https://macromusings.libsyn.com/george-selgin-on-repo-market-stress-fed-balance-sheet-volatility-and-a-standing-repo-facility   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

George Selgin is the director of the Cato Institute’s Center for Monetary and Financial Alternatives and is a returning guest to the Macro Musings podcast. He joins the show today as part of a two week special on the Fed and repo markets, as he helps us take a look at recent repo market stress from the Fed’s perspective. Specifically, David and George discuss the basics of the Fed’s balance sheet, the problematic nature of the Treasury General Account and foreign repo pools, and how George would tweak standing repo facility proposals to more directly address balance sheet volatility.    Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12162019/george-selgin-repo-market-stress-fed-balance-sheet-volatility-and-standing   George’s Twitter: @GeorgeSelgin George’s Cato profile: https://www.cato.org/people/george-selgin   Related Links:   *Stop the Presses! Or, How the Fed Can Avoid Reserve Shortages without Bulking-Up, Part 1* by George Selgin https://www.alt-m.org/2019/11/12/dtop-the-presses-or-how-the-fed-can-avoid-reserve-shortages-without-bulking-up-part-1/   *Stop the Presses! Or, How the Fed Can Avoid Reserve Shortages without Bulking-Up, Part 2* by George Selgin https://www.alt-m.org/2019/11/14/stop-the-presses-or-how-the-fed-can-avoid-reserve-shortages-without-bulking-up-part-2/   David’s Twitter thread on George’s proposal: https://twitter.com/DavidBeckworth/status/1202364853480017920   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

Robert Samuelson is an economics columnist for the Washington Post and spent several decades working at Newsweek, where he wrote on various economic topics. Robert is the author of several books, including *The Good Life and Its Discontents: The American Dream in the Age of Entitlement* and *The Great Inflation and Its Aftermath: The Past and Future of American Affluence*. He joins the show today to talk about the latter and its implications for today. David and Robert go in-depth about the Great Inflation, as they discuss the disagreement within macroeconomics during the 60s and 70s, the history and significance of the period, and how Ronald Reagan and Paul Volcker sought to end the inflation.   Tributes to Paul Volcker:   *Remembering Paul Volcker, The Man Who Tamed Inflation* by Scott Sumner https://thehill.com/opinion/finance/473963-remembering-paul-volcker-the-man-who-tamed-inflation   *Paul Volcker’s Legacy* by Scott Sumner https://www.econlib.org/paul-volckers-legacy/   *How Paul Volcker Beat Inflation and Saved an Independent Fed* by Roger Lowenstein https://www.washingtonpost.com/business/economy/how-paul-volcker-beat-inflation-and-saved-an-independent-fed/2019/12/10/7e58d7ae-1b64-11ea-87f7-f2e91143c60d_story.html   *Paul Volcker Was Inflation’s Worst Enemy* by John Taylor https://www.wsj.com/articles/paul-volcker-was-inflations-worst-enemy-11575937617   *Paul A. Volcker, Fed Chairman Who Waged War on Inflation, Is Dead at 92* by Binyamin Appelbaum and Robert D. Hershey Jr. https://www.nytimes.com/2019/12/09/business/paul-a-volcker-dead.html   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12112019/robert-samuelson-paul-volcker-and-great-inflation   Robert’s Washington Post profile & bio: https://www.washingtonpost.com/people/robert-j-samuelson/?noredirect=on&utm_term=.6e300b47761d   Related Links:   *The Great Inflation and Its Aftermath: The Past and Future of American Affluence* by Robert J. Samuelson https://www.penguinrandomhouse.com/books/160295/the-great-inflation-and-its-aftermath-by-robert-j-samuelson/9780812980042/   *The Good Life and Its Discontents: The American Dream in the Age of Entitlement* by Robert J. Samuelson https://www.penguinrandomhouse.com/books/160294/the-good-life-and-its-discontents-by-robert-samuelson/9780679781523/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth

Jim Bianco is the president of Bianco Research, a provider of data-driven insights into the global economy and financial markets, and is also a columnist for Bloomberg. Jim has 30-plus years of experience on Wall Street, and he joins the show today to talk about Fed policy, negative interest rates, and inflation. David and Jim also discuss the possibility of extending the yield curve, the Fed’s recent forays into the repo market, and what low interest rates mean for the economy moving forward.   Transcript for the episode: https://www.mercatus.org/bridge/podcasts/12092019/jim-bianco-negative-interest-rates-low-inflation-and-yield-curve-expansion   Jim’s Twitter: @biancoresearch Jim’s Bloomberg profile: https://www.bloomberg.com/authors/ABvwE0aTOvg/jim-bianco   Related Links:   *A History of Interest Rates* by Dick Sylla and Sidney Homer https://www.wiley.com/en-us/A+History+of+Interest+Rates%2C+4th+Edition-p-9780471732839   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth