Monetary Policy
By minimizing the harm caused by recessions and high inflations, monetary policy can promote economic stability and create an environment in which individuals and businesses prosper and thrive. In pursuit of these goals, Mercatus research shows why and how the Federal Reserve should (a) follow a rules-based approach to making policy, (b) increase its transparency and accountability to the public, and (c) better utilize market signals.
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Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Josh Hendrickson on the Treasury Standard and Global Dollar Dominance
From the collapse of the Bretton Woods system to the present, the US has continued to further implement its Treasury Standard across the globe as an effective economic and geopolitical tool.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Mortgage Rates Creep Higher, Carmax Stock Plunges | Yahoo! Finance Live
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
There’s No Real Case for the Fed To Cut Rates Right Now | CNBC
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q4 2023
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Julia Coronado on Productivity, Commercial Real Estate, and the Fed’s Soft Landing
As the Fed continues to seek a soft landing in 2024, election year politics and a shaky commercial real estate market are just a couple of the remaining challenges facing the central bank.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Buy the People: Why Everyone Loves To Hate the Fed | American Banker’s “Bank Shot”
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Veteran Federal Reserve Exec Thomas Hoenig Warns We’re on a Trajectory for Crisis | Thoughtful Money
- | Monetary Policy Monetary Policy
- | Radio Appearance Radio Appearance
Forget About an Economic Recession? | South Carolina Public Radio
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Isabel Schnabel on the ECB and its New Operational Framework
After conducting its most recent review, the ECB has made important changes to its operational framework that will ensure continued effectiveness, efficiency, flexibility, and robustness.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Andrew Levin and Christina Parajon Skinner on *Central Bank Undersight: Assessing the Fed’s Accountability to Congress*
Strengthening reporting requirements and implementing external reviews are just a couple of avenues that Congress could pursue to restore effective oversight of the Fed.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Fed Is Telling the Markets to ‘Curb Your Enthusiasm’ | Fox Business Network
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Anat Admati on the US Banking System and the Basel III Endgame
Requiring banks to fund with higher levels of capital is one way to promote a safer and healthier banking system.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts ‘Would Be a Surprise to Me’ at This Point | CNBC’s “Squawk Box”
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Measuring Macroeconomic Policy: the NGDP Gap
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Steven Kamin and Mark Sobel on the Current State of Dollar Dominance
Given the liquidity, safety, and investor protections the dollar provides, its pivotal status as the world’s reserve currency provides numerous macroeconomic and geopolitical benefits.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Peter Williams on Interest Rates, Term Premium, and the Importance of Inflation Expectations
Adding additional macroeconomic data to factor models may help provide a more stable estimate of the neutral rate of interest, or R-star.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts This Year Would Be a Surprise | CNBC
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Bill Nelson on the Using the Discount Window for Liquidity Requirements and Its Implications for the Fed’s Balance Sheet
Removing the stigmatization associated with use of the discount window is one way for the Fed to improve its role as lender of last resort.
- | Financial Markets Financial Markets
- | Expert Commentary Expert Commentary
Is the Bank Secrecy Act Vulnerable to Constitutional Challenge Over Post January 6th Data Collection? | FinRegRag
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Getting Monetary Policy Right: What Should the Federal Reserve Have Learned from Its Pandemic Response?
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Josh Hendrickson on the Treasury Standard and Global Dollar Dominance
From the collapse of the Bretton Woods system to the present, the US has continued to further implement its Treasury Standard across the globe as an effective economic and geopolitical tool.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Mortgage Rates Creep Higher, Carmax Stock Plunges | Yahoo! Finance Live
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
There’s No Real Case for the Fed To Cut Rates Right Now | CNBC
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q4 2023
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Julia Coronado on Productivity, Commercial Real Estate, and the Fed’s Soft Landing
As the Fed continues to seek a soft landing in 2024, election year politics and a shaky commercial real estate market are just a couple of the remaining challenges facing the central bank.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Buy the People: Why Everyone Loves To Hate the Fed | American Banker’s “Bank Shot”
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Veteran Federal Reserve Exec Thomas Hoenig Warns We’re on a Trajectory for Crisis | Thoughtful Money
- | Monetary Policy Monetary Policy
- | Radio Appearance Radio Appearance
Forget About an Economic Recession? | South Carolina Public Radio
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Isabel Schnabel on the ECB and its New Operational Framework
After conducting its most recent review, the ECB has made important changes to its operational framework that will ensure continued effectiveness, efficiency, flexibility, and robustness.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Andrew Levin and Christina Parajon Skinner on *Central Bank Undersight: Assessing the Fed’s Accountability to Congress*
Strengthening reporting requirements and implementing external reviews are just a couple of avenues that Congress could pursue to restore effective oversight of the Fed.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Fed Is Telling the Markets to ‘Curb Your Enthusiasm’ | Fox Business Network
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Anat Admati on the US Banking System and the Basel III Endgame
Requiring banks to fund with higher levels of capital is one way to promote a safer and healthier banking system.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts ‘Would Be a Surprise to Me’ at This Point | CNBC’s “Squawk Box”
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Measuring Macroeconomic Policy: the NGDP Gap
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Steven Kamin and Mark Sobel on the Current State of Dollar Dominance
Given the liquidity, safety, and investor protections the dollar provides, its pivotal status as the world’s reserve currency provides numerous macroeconomic and geopolitical benefits.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Peter Williams on Interest Rates, Term Premium, and the Importance of Inflation Expectations
Adding additional macroeconomic data to factor models may help provide a more stable estimate of the neutral rate of interest, or R-star.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts This Year Would Be a Surprise | CNBC
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Bill Nelson on the Using the Discount Window for Liquidity Requirements and Its Implications for the Fed’s Balance Sheet
Removing the stigmatization associated with use of the discount window is one way for the Fed to improve its role as lender of last resort.
- | Financial Markets Financial Markets
- | Expert Commentary Expert Commentary
Is the Bank Secrecy Act Vulnerable to Constitutional Challenge Over Post January 6th Data Collection? | FinRegRag
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Getting Monetary Policy Right: What Should the Federal Reserve Have Learned from Its Pandemic Response?
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q4 2023
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Measuring Macroeconomic Policy: the NGDP Gap
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Getting Monetary Policy Right: What Should the Federal Reserve Have Learned from Its Pandemic Response?
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Governance and Diversity at the Federal Reserve
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q3 2023
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q2 2023
- | Monetary Policy Monetary Policy
- | Working Papers Working Papers
What Is the Monetary Standard? The Fed Should Tell Us
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
A New Coin of the Realm? Central Bank Digital Currency as New Public Money
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Transparency at Federal Reserve Banks
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Fifteen Years of Aggressive Discretionary Fiscal Policy
- | Monetary Policy Monetary Policy
- | Working Papers Working Papers
Nominal Income Expectations of Consumers
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q1 2023
- | Government Spending Government Spending
- | Policy Briefs Policy Briefs
Fiscal Dominance: How Worried Should We Be?
- | Monetary Policy Monetary Policy
- | Books Books
Alternative Approaches to Monetary Policy
Published at "TheMoneyIllusion"
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
Why There Is a Need for a New Fed History in the Spirit of Friedman and Schwartz’s A Monetary History
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q4 2022
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
Is the Quantity Theory Dead? Lessons from the Pandemic
- | Monetary Policy Monetary Policy
- | Research Papers Research Papers
What Kind of Landing: Soft or Hard?
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Federal Reserve’s Balance Sheet: Costs to Taxpayers of Quantitative Easing
- | Monetary Policy Monetary Policy
- | Policy Briefs Policy Briefs
The Neutral Level of NGDP and the NGDP Gap: Q3 2022
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Josh Hendrickson on the Treasury Standard and Global Dollar Dominance
From the collapse of the Bretton Woods system to the present, the US has continued to further implement its Treasury Standard across the globe as an effective economic and geopolitical tool.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Mortgage Rates Creep Higher, Carmax Stock Plunges | Yahoo! Finance Live
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
There’s No Real Case for the Fed To Cut Rates Right Now | CNBC
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Julia Coronado on Productivity, Commercial Real Estate, and the Fed’s Soft Landing
As the Fed continues to seek a soft landing in 2024, election year politics and a shaky commercial real estate market are just a couple of the remaining challenges facing the central bank.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Buy the People: Why Everyone Loves To Hate the Fed | American Banker’s “Bank Shot”
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Veteran Federal Reserve Exec Thomas Hoenig Warns We’re on a Trajectory for Crisis | Thoughtful Money
- | Monetary Policy Monetary Policy
- | Radio Appearance Radio Appearance
Forget About an Economic Recession? | South Carolina Public Radio
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Isabel Schnabel on the ECB and its New Operational Framework
After conducting its most recent review, the ECB has made important changes to its operational framework that will ensure continued effectiveness, efficiency, flexibility, and robustness.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Andrew Levin and Christina Parajon Skinner on *Central Bank Undersight: Assessing the Fed’s Accountability to Congress*
Strengthening reporting requirements and implementing external reviews are just a couple of avenues that Congress could pursue to restore effective oversight of the Fed.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Fed Is Telling the Markets to ‘Curb Your Enthusiasm’ | Fox Business Network
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Anat Admati on the US Banking System and the Basel III Endgame
Requiring banks to fund with higher levels of capital is one way to promote a safer and healthier banking system.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts ‘Would Be a Surprise to Me’ at This Point | CNBC’s “Squawk Box”
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Steven Kamin and Mark Sobel on the Current State of Dollar Dominance
Given the liquidity, safety, and investor protections the dollar provides, its pivotal status as the world’s reserve currency provides numerous macroeconomic and geopolitical benefits.
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Peter Williams on Interest Rates, Term Premium, and the Importance of Inflation Expectations
Adding additional macroeconomic data to factor models may help provide a more stable estimate of the neutral rate of interest, or R-star.
- | Monetary Policy Monetary Policy
- | TV Appearance TV Appearance
Three Rate Cuts This Year Would Be a Surprise | CNBC
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Bill Nelson on the Using the Discount Window for Liquidity Requirements and Its Implications for the Fed’s Balance Sheet
Removing the stigmatization associated with use of the discount window is one way for the Fed to improve its role as lender of last resort.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Monetary Policy at a Crossroads | The Concord Coalition’s “Facing the Future”
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Eric Leeper on *A Fiscal Accounting of COVID Inflation*
While many economists cite a range of different factors as the cause of the COVID inflation surge, a large increase in federal pandemic related spending may be the most likely culprit.
- | Monetary Policy Monetary Policy
- | Podcast Appearance Podcast Appearance
Behind the Fed | Double Take
- | Monetary Policy Monetary Policy
- | Mercatus Original Podcasts Mercatus Original Podcasts
- | Macro Musings Macro Musings
Jeffrey Lacker on Governance at the Federal Reserve
After falling behind the curve during the recent inflation episode, the Fed must consider reviewing its governance structure moving forward.
Latest work in Monetary Policy
- | Monetary Policy Monetary Policy
- | State Testimonies State Testimonies
The Evolution of the Role of the Federal Reserve
Pennsylvania House Majority Policy Committee
- | Monetary Policy Monetary Policy
- | Federal Testimonies Federal Testimonies
Safeguarding the Federal Reserve's Independence
Testimony before the Subcommittee on National Security, International Development, and Monetary Policy of the House Committee on Financial Services
- | Monetary Policy Monetary Policy
- | Public Interest Comments Public Interest Comments
FedNow Portends a More Competitive and Resilient Payments System
- | Monetary Policy Monetary Policy
- | Public Interest Comments Public Interest Comments
Response to the Federal Housing Finance Agency Request for Comment on How Its Regulations May Be Made More Effective and Less Burdensome
- | Technology and Innovation Technology and Innovation
- | Public Interest Comments Public Interest Comments
Comments to the New York Department of Financial Services on the Proposed Virtual Currency Regulatory Framework
- | Financial Markets Financial Markets
- | Federal Testimonies Federal Testimonies
Legislation to Reform the Federal Reserve on Its 100-year Anniversary
Testimony Before the House Committee on Financial Services Committee
- | Financial Markets Financial Markets
- | Federal Testimonies Federal Testimonies
Ending the Federal Reserve System’s Overreach into Credit Allocation
Testimony Before the Subcommittee on Monetary Policy and Trade House Committee on Financial Services
- | Technology and Innovation Technology and Innovation
- | Federal Testimonies Federal Testimonies
Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual Currencies
Testimony Before the Senate Committee on Homeland Security and Governmental Affairs
- | Monetary Policy Monetary Policy
- | Federal Testimonies Federal Testimonies
The Federal Reserve and the Rule of Law
Testimony Before the House Committee on Financial Services
- | Monetary Policy Monetary Policy
- | Federal Testimonies Federal Testimonies
Fractional Reserve Banking
Testimony Before the House Subcommittee on Domestic Monetary Policy and Technology
- | Monetary Policy Monetary Policy
- | Public Interest Comments Public Interest Comments
Mutual Fund After-Tax Returns
- | Monetary Policy Monetary Policy
- | Public Interest Comments Public Interest Comments
Minimum Security Devices and Procedures and Bank Secrecy Act
Latest work in Monetary Policy
- | Financial Markets Financial Markets
- | Expert Commentary Expert Commentary
Is the Bank Secrecy Act Vulnerable to Constitutional Challenge Over Post January 6th Data Collection? | FinRegRag
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Monetary Policy: Narrowing Discretion, Improving Outcomes | FinRegRag
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Questions on National Debt and Interest Rates | FinRegRag
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Inflation Wasn’t Transitory | City Journal
- | Monetary Policy Monetary Policy
- | Announcements Announcements
Former Richmond Fed President Lacker Joins Mercatus
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Will the Economy Get Better in 2024? | Washington Examiner
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Argentina’s Best Hope: Dollarization | City Journal
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Taking a Close Look at the Economic Situation: September 2023 | Groundbreak Carolinas
- | Government Spending Government Spending
- | Expert Commentary Expert Commentary
First Anniversary of Inflation Reduction Act | WSPD radio’s “The Scott Sands Show” (OH)
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Biden’s Union Support Could Get in the Way of His Industrial Policy | National Review’s “The Corner”
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Do Aging Politicians Help Explain the US Credit Rating Downgrade? | The Washington Examiner
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
US Downgrade: 20 Years of Erosion of Governance | National Review’s “The Corner”
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
The Money Supply Predicted Inflation’s Fall. Who’s Actually Surprised? | The Washington Examiner
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
The Solution to the Inflation-interpretation Debate | National Review
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
Why We Don’t Need To Tolerate Higher Inflation | Tribune News Service
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
The Legacy of Trailblazing Economist Robert Lucas | Discourse
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
The Fed Has Overseen a Remarkable Transfer of Wealth From Bondholders to Taxpayers | Barron's
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
It’s Time for the Fed to Take a Breath | National Review
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary
The Role of Sound Monetary Policy in an Abundance Agenda | Discourse
- | Monetary Policy Monetary Policy
- | Expert Commentary Expert Commentary