Macro Musings with David Beckworth

Carola Binder, an associate professor at the University of Texas at Austin and author of *Shock Values: Prices and Inflation in American Democracy*, joins the discussion on inflation's historical context. She delves into the implications of adopting nominal GDP targeting for monetary policy, emphasizing its potential to enhance stability. Carola also reflects on the Fed's upcoming framework review and shares insights from past economic struggles during the American Revolutionary and Civil Wars, revealing how these challenges have shaped contemporary monetary policy.

Samim Ghamami, an economist at the SEC, shares insights on reforming the US Treasury market. He breaks down the market's structure and discusses the impact of rising interest rates. Ghamami emphasizes the importance of central clearing and potential reforms to enhance market stability. He also addresses risk concentration concerns and highlights the Treasury's new buyback program aimed at improving liquidity. With a forward-looking perspective, he evaluates how these changes could reshape fiscal and monetary policies in the future.

Kyla Scanlon, founder of Bread, a financial education company aimed at younger audiences, discusses various economic trends. She breaks down the concept of the “Vibecession” and how it ties into the evolving vibe economy. Kyla highlights strategies for growing American wealth while navigating current asset price dynamics and housing market challenges. The conversation also touches on Gen Z’s increasing interest in macroeconomics and the necessity for clearer communication about economic policies to foster understanding.

Sam Schulhofer-Wohl, a Senior Vice President at the Dallas Fed and veteran of the Federal Reserve, dives into the complexities of Treasury market resiliency. He discusses vulnerabilities exposed during the pandemic and the significance of central clearing for market efficiency. Schulhofer-Wohl also explores the intricacies of labor migration across the U.S., its impact on monetary policy, and the need for adaptive strategies in a one-size-fits-all approach. His insights shed light on the evolving landscape of financial stability and regulatory reforms.

Nicholas Anthony, a policy analyst at the Cato Institute and fellow at the Human Rights Foundation, dives into the world of Central Bank Digital Currencies (CBDCs). He explores the historical evolution of CBDCs and discusses their challenges, risks, and varying types. The conversation also touches on privacy concerns linked to government surveillance and recent legislative moves. Anthony emphasizes the need for public awareness around the implications of CBDCs and the complexities of cross-border payments, questioning if they truly solve existing financial issues.

Former president and CEO of the Federal Reserve Bank of St. Louis, James Bullard, talks with David about FAIT, nominal GDP targeting, the future of R-star, and upcoming Fed framework review. They explore improving FOMC's reporting, evaluating recent economic recovery, and discussing potential changes to the Fed's framework.

Josh Lipsky, senior director of the Atlantic Council’s GeoEconomics Center, discusses the evolution of financial statecraft, cross-border payments, and the implications for digital currencies. Topics include applying financial statecraft in conflicts, the future of wholesale CBDC in the US, advancements in Chinese cross-border payment systems, and the private sector's role in financial innovation.

Steven Kelly, Associate Director of Research at the Yale Program on Financial Stability, discusses the financial stability implications of the discount window with David Beckworth. They touch on issues with FHLBs, fixing reporting challenges, restarting term auction and liquidity facilities, and more.

Ernie Tedeschi, former White House economist, discusses political risks to US safe harbor premium, benefits of full employment, and trends in R-star. Topics include labor market metrics, soft landings in inflation, and implications of R-star movements on monetary policy. Ernie highlights the importance of productivity growth and efficient taxation for economic sustainability.

Former Federal Reserve Bank of Richmond President, Jeffrey Lacker, discusses Fed governance issues and lessons from recent inflation surge on Macro Musings. Topics include Fed restructuring, stress testing, oil price shocks' impact on economy, inflation targeting challenges, and recommendations for Fed policy review.