"The FOMC should forget about r* for the moment and focus on … the supermassive black hole at the center of global dollar funding markets."—Zoltan Poszar, 21 August, 2019. A few weeks ago, as part of its effort to prevent overnight rates from rising above the Fed's…
As The Wall Street Journal, The New York Times, and several other news outlets reported recently, although it has managed to avoid setting off another taper tantrum like that of 2013, the Fed is having a bad case of unwind jitters, thanks to unanticipated tightening in the…
Last month, in what will presumably be one of his last public speeches before he retires this June, New York Fed President William Dudley defended the Fed's current "floor" system of monetary control against the alternative of a corridor arrangement. Because Dudley's is one of the more…
David Andolfatto has thoughtfully replied to my critique of his "A public finance case for keeping the Fed's balance sheet large.” Here I respond to his reply (despite his Twitter plea to me not to!). I thank him for taking the time to address my criticisms. I…
The most stinging rebuke, as well as the most public one, I ever received over the course of my academic career, was delivered to me in the pages of The Economic Journal. It consisted of a footnote to an article celebrating James Tobin's contributions to economics. The…