Macro Musings

Anat Admati is the George G.C. Parker Professor of Finance and Economics at Stanford University’s Graduate School of Business and co-author of the book, *The Bankers’ New Clothes: What’s Wrong with Banking and What to Do About It.* She joins the show to discuss her book, which argues that America’s banking system continues to be dangerously fragile even in the aftermath of the Dodd-Frank Act. Anat argues that banks take on too much leverage and that they should be required to hold more equity. David’s blog: http://macromarketmusings.blogspot.com/ Anat’s Stanford profile: https://www.gsb.stanford.edu/faculty-research/faculty/anat-r-admati David’s Twitter: @davidbeckworth Anat’s Twitter: @anatadmati Related: *The Bankers’ New Clothes: What’s Wrong with Banking and What to Do About It* by Anat Admati and Martin Hellwig http://bankersnewclothes.com/ Anat’s paper, “It Takes a Village to Maintain a Dangerous Financial System” http://bankersnewclothes.com/wp-content/uploads/2016/06/Takes-a-Village-May-2016.pdf

In this week’s special episode recorded in front of a live audience, David interviews the renowned monetary economist, Allan Meltzer. Meltzer, a professor of political economy at Carnegie Mellon University and one of the founders of the monetarist school of thought discusses his long career in academia and policy. David and Allan also discuss current central bank policy, both in the United States and abroad, and how monetary policy can become more rules-based. Finally, Allan also argues many of our current economic problems are real, not nominal, and he hopes a Trump Administration can address some of these woes. Note: this episode took place before the December 2016 interest rate hike by the Federal Reserve. David’s blog: http://macromarketmusings.blogspot.com/ Allan Meltzer’s bio: http://tepper.cmu.edu/our-faculty-and-research/about-our-faculty/faculty-profiles/am05/meltzer-allan David’s Twitter: @DavidBeckworth Related links: “A History of the Federal Reserve (Volumes I and II)” by Allan Meltzer (Universit

Ylan Mui covers White House economic policy for the Washington Post. Previously, she covered the Federal Reserve. Today, she joins the show to discuss what it is like to attend Fed press conferences and write on the technical nuances of Fed policy. David and Ylan also discuss what a Trump Administration might mean for economic issues ranging from trade to infrastructure spending to monetary policy. David’s blog: http://macromarketmusings.blogspot.com/ Ylan’s archive: https://www.washingtonpost.com/people/ylan-q-mui/ David's Twitter: @davidbeckworth Ylan's Twitter: @ylanmui

In this week’s special episode, David discusses the economics of Christmas with Laura Birg, a post-doctoral researcher at the University of Goettingen, and Anna Goeddke, a professor of economics at the ESB Business School at Reutlingen University. Topics include the dead-weight loss of gift-giving, Christmas’ effects on seasonal GDP, increases in alcohol consumption, and the effect of secularization on Christmas celebrations. [Note: We will be taking a break next week for the holidays, but we will be back the following Monday, January 2, with the Washington Post’s Ylan Mui!] David’s blog: macromarketmusings.blogspot.com/ David’s Twitter: @davidbeckworth Anna’s VoxEU profile: http://voxeu.org/users/annagoeddeke0 Anna’s Twitter: @annagoeddeke Laura’s University of Goettingen profile: https://www.uni-goettingen.de/en/362254.html Related links: “Christmas Economics – A Sleigh Ride” by Laura Birg and Anna Goeddke (2014) https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2526055 “The Seasonal Cycle and the Busines

In this week’s special episode, David compares and contrasts the economics of the Star Wars and Star Trek universes. He is joined by Zachary Feinstein, an Assistant Professor at Washington University in St. Louis, and Manu Saadia, author of *Trekonomics.* Topics include the economic fallout from the destruction of the Death Star, the absence of money in Star Trek, and whether a universe can really eliminate scarcity. David’s blog: http://macromarketmusings.blogspot.com/ David’s Twitter: @davidbeckworth Manu’s *Trekonomics* website: https://trekonomics.tumblr.com/ (you can order the book, *Trekonomics,* here as well) Manu’s Twitter: @trekonomics Zach’s faculty profile: https://sites.wustl.edu/fictionomics/ Zach’s Twitter: @FictionomicsWU Related links: “It’s a Trap: Emperor Palpatine’s Poison Pill” by Zachary Feinstein https://arxiv.org/pdf/1511.09054.pdf “The Case for the Empire” by Jonathan Last http://www.weeklystandard.com/the-case-for-the-empire/article/2540

Peter Conti-Brown is an Assistant Professor at The Wharton School of the University of Pennsylvania. He joins the show to discuss his new book, *The Power and Independence of the Federal Reserve,* which exams the evolution of the Federal Reserve and what central bank independence really means. Peter also shares his thoughts on what a Trump presidency might mean for monetary policy. David’s bio: http://macromarketmusings.blogspot.com/ Peter’s UPenn bio: https://lgst.wharton.upenn.edu/profile/30645/ David’s Twitter: @davidbeckworth Peter’s Twitter: @PeterContiBrown Related links: *The Power and Independence of the Federal Reserve* by Peter Conti-Brown https://www.amazon.com/Power-Independence-Federal-Reserve/dp/0691164002 *America’s Bank: The Epic Struggle to Create the Federal Reserve* by Roger Lowenstein https://www.amazon.com/Americas-Bank-Struggle-Federal-Reserve/dp/1594205493

JP Koning is an economic consultant and writer. He joins the show to discuss fascinating stories in monetary history in Libya, Zimbabwe, and Switzerland. He also shares his thoughts on Blockchain technology and Fedcoin, a hypothetical cryptocurrency stabilized by the Federal Reserve. David’s blog: http://macromarketmusings.blogspot.com/ JP’s blog “Moneyness”: http://jpkoning.blogspot.com/ David’s Twitter: @davidbeckworth JP’s Twitter: @JP_Koning Related links: “What Happens When a Central Bank Splits in Two?” by JP Koning http://jpkoning.blogspot.com/2016/06/what-happens-when-central-bank-is-split.html “A Modern Example of Gresham’s Law” by JP Koning http://jpkoning.blogspot.com/2016/11/a-modern-example-of-greshams-law.html “Fedcoin” by JP Koning http://jpkoning.blogspot.ca/2014/10/fedcoin.html

Mark Calabria is the director of Financial Regulation Studies at the Cato Institute. Before joining Cato in 2009, he worked as a member of the senior staff of the U.S. Senate Committee on Banking, Housing, and Urban Affairs. He joins the show to discuss working on Capitol Hill amidst the 2008 financial crisis. Mark also discusses his recent Cato paper where he argues insights from behavioral economics suggest monetary policy should be more rules-based. David’s blog: macromarketmusings.blogspot.com/ Mark’s Cato Institute profile: https://www.cato.org/people/mark-calabria Mark’s Alt-M archive: http://www.alt-m.org/author/calabria/ David’s Twitter: @davidbeckworth Mark’s Twitter: @markcalabria Related links: “Yes, the Fed has a Diversity Problem” by Mark Calabria https://www.cato.org/blog/yes-federal-reserve-has-diversity-problem “Behavioral Economics and Fed Policymaking” by Mark Calabria https://object.cato.org/sites/cato.org/files/serials/files/cato-journal/2016/9/cj-v36n3-6.pdf

Roger Farmer is a Distinguished Professor of Economics at UCLA. He joins the show to discuss his new book, Prosperity for All: How to Prevent Financial Crises. He and David also discuss his criticism of the natural rate of unemployment hypothesis, an important proposition in mainstream macroeconomics. David’s blog: http://macromarketmusings.blogspot.com/ Roger’s personal website: http://www.rogerfarmer.com/ David’s Twitter: @davidbeckworth Roger’s Twitter: @farmerrf Related links: Roger’s UCLA profile http://www.econ.ucla.edu/faculty/regular/Farmer.html Prosperity for All: How to Prevent Financial Crises by Roger Farmer https://global.oup.com/academic/product/prosperity-for-all-9780190621438?cc=us&lang=en& “The Natural Rate Hypthesis: An Idea Past Its Sell-by Date” by Roger Farmer http://www.nber.org/papers/w19267

Mark Koyama is an Assistant Professor of Economics at George Mason University and a Senior Fellow at George Mason University’s Mercatus Center. He joins the show to discuss his research on the economic history of ancient Rome from the rise of the Roman Republic to the transition to the Roman Empire to the Empire’s eventual fall. David’s blog: http://macromarketmusings.blogspot.com/ Mark’s Medium page: https://medium.com/@MarkKoyama Mark’s GMU profile: http://economics.gmu.edu/people/mkoyama2 David’s Twitter: @DavidBeckworth Mark’s Twitter: @MarkKoyama Related links: “The Roman Market Economy” by Peter Temin (2012, Princeton University Press) http://press.princeton.edu/titles/9896.html “Peter Temin and the Malthusian Hypothesis for the Limits of Roman Growth” by Mark Koyama https://medium.com/@MarkKoyama/peter-temin-and-the-malthusian-hypothesis-for-the-limits-of-roman-growth-12489edce93a#.ijytapey2 “Why did the Roman Economy Decline?” by Mark Koyama https://medium.com/art-marketing/why-did-the-roman-economy-d

Rüdiger (Rudi) Bachmann is a Stepan Family Associate Professor of Economics at the University of Notre Dame. He joins the show to discuss the economic history of his native Germany. David and Rudi also discuss how the German approach to macroeconomics is distinctly different from the approach taken in the United States. David’s blog: macromarketmusings.blogspot.com/ Rudi’s Notre Dame webpage: https://www3.nd.edu/~rbachman/ David’s Twitter: @DavidBeckworth Related links: Rudi on his work on economic uncertainty: https://www.youtube.com/watch?v=6XDlzBgf1uE NYT Upshot Article: “How Economists Came to Dominate the Conversation” http://www.nytimes.com/2015/01/24/upshot/how-economists-came-to-dominate-the-conversation.html?_r=0 Peter Bofinger’s Vox EU article: “German Macroeconomics: The Long Shadow of Walter Eucken” http://voxeu.org/article/german-macroeconomics-long-shadow-walter-eucken

Narayana Kocherlakota is the Lionel W. McKenzie Professor of Economics at the University of Rochester, and he previously served as president and CEO of the Federal Reserve Bank of Minneapolis. He joins the show to discuss to discuss what it is like working as a Fed president and a member of the Federal Open Market Committee. He also shares some of his thoughts on the drawbacks of current proposals on establishing monetary rules. David’s blog: macromarketmusings.blogspot.com/ Narayana’s website: https://sites.google.com/site/kocherlakota009/ David’s Twitter: @davidbeckworth Narayana’s Twitter: @kocherlakota009 Related links: Narayana’s profile, speeches, and articles as Fed president: https://www.minneapolisfed.org/about/more-about-the-fed/presidents-of-the-minneapolis-fed/narayana-kocherlakota Narayana’s Bloomberg archive: https://www.bloomberg.com/view/contributors/APvwpZqjDaA/narayana-kocherlakota/articles Narayana’s Brookings article: Rules vs. Discretion: A Reconsideration https://www.brookings.edu/bpea-a

Izabella Kaminska is a writer for the Financial Times at its premier blog, FT Alphaville. She joins the show to discuss her work on blockchain technology as well as current proposals on monetary and fiscal policy. Finally, Izabella and David, who are both big sci-fi fans, talk about economics in the Star Trek and Star Wars sagas. David’s Twitter: @DavidBeckworth Izabella Kaminska’s Twitter: @izakaminska David’s blog: http://macromarketmusings.blogspot.com/ Izabella Kaminska’s FT bio and archive: http://ftalphaville.ft.com/meet-the-team/izabella-kaminska/ Related links: “You see, money doesn’t exist in the 24th century” – Izabella Kaminska http://ftalphaville.ft.com/2015/10/12/2142030/you-see-money-doesnt-exist-in-the-24th-century/ Even lower rates? “Thanks but no thanks” say banks everywhere – Izabella Kaminska http://ftalphaville.ft.com/2016/07/11/2168870/even-lower-rates-thanks-but-no-thanks-say-banks-everywhere/ Trekonomics: The Economics of Star Trek – Manu Saadia https://www.amazon.com/Trekonomics-Econom

Claudio Borio is the director of the monetary and economic department at the Bank for International Settlements (BIS). He joins the show to discuss his career in monetary policy, banking, and macroprudential regulation. In particular, he and David discuss problems afflicting the Eurozone and how to address massive financial imbalances across the world. David’s Twitter: @DavidBeckworth Claudio’s bio and research: https://www.bis.org/author/claudio_borio.htm David’s blog: macromarketmusings.blogspot.com/ Related links: “Revisiting Three Intellectual Pillars of Monetary Policy” by Claudio Borio http://object.cato.org/sites/cato.org/files/serials/files/cato-journal/2016/5/cj-v36n2-1.pdf

Andrew Levin is a professor of economics at Dartmouth College and a former Federal Reserve Board economist. For two years, he worked as a special adviser to Chairman Ben Bernanke and Vice Chair Janet Yellen. He joins the podcast to discuss his experiences at the Fed  and the need for more accountability. His ideas include increasing transparency, setting term limits, and fostering diversity of thought and background among its members.    David’s Twitter: @DavidBeckworth Andy Levin’s Twitter: @AndrewTLevin David’s blog: http://macromarketmusings.blogspot.com/ Andy Levin’s bio: http://www.dartmouth.edu/~alevin/   Related links: Dartmouth College Q&A with Professor Andy Levin http://www.thedartmouth.com/article/2016/09/qa-with-economics-professor-andrew-levin     How Andy proposes to reform the Fed: http://www.businessinsider.com/andrew-levins-4-radical-fed-changes-2016-4 http://www.bloomberg.com/politics/articles/2016-04-11/former-yellen-adviser-proposes-sweeping-reform-of-fed-system http://www.wsj.com/arti

Morgan Ricks is a law professor at Vanderbilt University and an expert on financial regulation. From 2009-2010, he was a senior policy adviser at the U.S. Treasury Department where he focused on financial stability initiatives. Morgan joins the show to discuss his new book, “The Money Problem: Rethinking Financial Regulation,” which argues that shadow banking institutions create large sums of private sector money through issuing short-term debt. This rapid expansion creates instability to the financial system and to the broader economy. To solve this problem, Morgan proposes that only properly chartered, FDIC-insured banks be allowed to issue short-term liabilities. Although there may be more bureaucracy in insuring the financial system under this proposal, Morgan argues there would be less need for higher capital requirements and other regulations. David’s blog: http://macromarketmusings.blogspot.com/ Morgan Ricks’ Vanderbilt profile: http://law.vanderbilt.edu/bio/morgan-ricks David’s Twitter: @DavidBeckwort

Ryan Avent is an economics columnist for The Economist and author of the new book, The Wealth of Humans: Work, Power, and Status in the Twenty-First Century. He joins the show to discuss his new book, which explores how the Digital Revolution is dramatically changing the economy and our lives. He also discusses how he previously worked at the Bureau of Labor Statistics and as a private sector consultant before moving to journalism. Finally, David and Ryan talk about economic angst both in the United States and abroad as well as some sound macroeconomic policies to address this. David’s Twitter: @davidbeckworth David’s blog: http://macromarketmusings.blogspot.com/ Ryan Avent’s Twitter: @ryanavent Ryan Avent’s website: http://www.ryanavent.com/blog/?page_id=6 Related links: http://www.economist.com/ https://www.amazon.com/Wealth-Humans-Status-Twenty-first-Century/dp/1250075807

Michael D. Bordo is a professor of economics and the director of the Center for Monetary and Financial History at Rutgers University, a Distinguished Visiting Fellow at the Hoover Institution, and a research associate at the National Bureau of Economic Research. He has also been a visiting scholar at numerous central banks across the world. Michael, a prolific scholar, joins the show to discuss a long career in monetary economics, including his research with the legendary Anna Schwartz. He shares his thoughts on the Great Recession and how it compares with the Great Depression. Additionally, he challenges the notion that financial crises like the 2007-2009 crisis are necessarily followed by slow recoveries. David and Michael also chat about the history of American banking law and how restrictions on interstate-branch banking until the 1990s hindered economic growth. Finally, Michael gives some advice about how to be a successful monetary historian! David’s blog: macromarketmusings.blogspot.com Michael Bordo’s

Peter Ireland is the Murray and Monti Professor of Economics at Boston College, a research associate at the National Bureau of Economic Research, and a member of the Shadow Open Market Committee. He joins the show to discuss his experience as a student at the University of Chicago as well as the nuts and bolts of how the Federal Reserve sets out to achieve its short-, medium-, and long-term objectives. David and Peter also discuss the role of monetary aggregates in monetary policy. Economists largely don’t pay much attention to the traditional simple-sum measures of the money supply anymore, but Ireland argues that more complex measures of money, called Divisia indices, can teach us a lot about the stance of monetary policy. [To learn more about the upcoming conference, Monetary Rules for a Post-Crisis World, co-hosted by the Mercatus Center and the Cato Institute, and register, please click the link below. You can also watch the conference online by clicking the link.] http://mercatus.org/content/register-mo

Hugh Rockoff is a professor of economics at Rutgers University and has done extensive work in U.S. monetary history. He joins the show to discuss the criteria for an ideal monetary union and argues that the U.S. didn’t really become an optimal currency area until the 1930s. David and Hugh then discuss whether a present-day example, the Eurozone, fits these criteria. They also talk about interesting chapters in U.S. monetary history, including the Civil War, the Free Banking Era, and the bimetallism debate of the late 1800s. [To learn more about the upcoming conference, Monetary Rules for a Post-Crisis World, co-hosted by the Mercatus Center and the Cato Institute, and register, please click the link below. You can also watch the conference online by clicking the link.] http://mercatus.org/monetaryconference?utm_source=MacroMusingsPodcast&utm_medium=link&utm_campaign=MonetaryRules David’s blog: http://macromarketmusings.blogspot.com/ Hugh Rockoff’s homepage: http://econweb.rutgers.edu/rockoff/ David’s