Explore a panel discussion on the current state and future of monetary policy, featuring experts from academia, finance, and economics. Delve into the remaining tools available to central banks, comparing international efforts to stimulate credit and their outcomes. Examine the impact of low productivity on monetary policy, the role of technology in economic decision-making, and the potential for central bank cooperation. Gain insights on supporting investment, addressing the inflation gap, and navigating the politics of monetary policy. Analyze the effectiveness of forward guidance, the debate between rules and frameworks, and the implications of near-zero interest rates. Consider the challenges of inadequate demand, capital investment, and the controversial topic of negative rates. Evaluate the Federal Reserve's role as a lender of last resort and its performance during recent economic crises. Conclude with a discussion on emerging topics such as digital currencies and their potential impact on monetary policy.
Monetary Policy - What's Left in the Toolbox?
Overview
Syllabus
Intro
Whats Left in the Toolbox
Guidelines
Macro Cycle
Low Interest Rates
Access to Credit
A Less Discretionary Environment
Forward Guidance
Unintended Consequences
Inflation Gap
Rule vs Framework
Rule vs Strategy
Politics of the Fed
Flexibility of the Fed
The Congress has a role
Setting the tone for monetary policy
Explicit contracts
ECB independence
Politically politicized
Interest rates close to zero
Cost a capital zero
Inadequate demand
Access to capital
Capital investment
Negative rates
The lender of last resort
A mistake to broker the rescue
The Fed did a brilliant job
IMF
Adam Larrick
Max Scotland
The End Game
Markets
Digital currency
Taught by
Milken Institute
