Category Archives: Monetary Policy

Unconventional Monetary Policy, Normalization, and Reform

This week the Monetary Policy Subcommittee of the House Financial Services Committee held a hearing on “Unconventional Monetary Policy.”  Charles Plosser, Mickey Levy, Simon Johnson and I testified. It was a good hearing with pertinent questions by Members of Congress, … Continue reading

Posted in Monetary Policy

A New Opportunity for Monetary Reform

The opportunity for pro-growth tax reform (lower rates with a broader base) and pro-growth regulatory reform (with rigorous cost-benefit tests) is now better than it has been in years, because of similarities between reform ideas put forth by Congress—many in … Continue reading

Posted in Monetary Policy

Central Bank Models: A Key to Future Monetary Policy

In thinking about the future of monetary policy, it’s important to consider legislative reforms and appointments, but it’s also important to consider the economic models that have come to be a key part of policy making in central banks. The … Continue reading

Posted in Monetary Policy, Teaching Economics

A World Cup in the Battle of Ideas

Markus Brunnermeier, Harold James and Jean-Pierre Landau have just published a fascinating book, The Euro and the Battle of Ideas, in which they bring together their respective skills in economic theory, economic history and economic policy to bear on one … Continue reading

Posted in Financial Crisis, International Economics, Monetary Policy, Regulatory Policy

Should the Previous Framework for Monetary Policy Be Fundamentally Reconsidered?

“Did the crisis reveal that the previous consensus framework for monetary policy was inadequate and should be fundamentally reconsidered?”  “Did economic relationships fundamentally change after the crisis and if so how?” These important questions set the theme for an excellent … Continue reading

Posted in Financial Crisis, Monetary Policy, Teaching Economics

Central Banks Going Beyond Their Range

Economist John Eatwell of Cambridge and I published a joint letter in the Financial Times today. We argue that monetary policy is off track and that other policies are sorely needed. I said the same in a CNBC interview from Miami … Continue reading

Posted in Monetary Policy

Kocherlakota on the Fed and the Taylor Rule

The use of policy rules to analyze monetary policy has been a growing area of research for several decades, and the pace has picked up recently. Last month Janet Yellen presented a policy framework for the future centered around a … Continue reading

Posted in Monetary Policy