Filippo Gaddo, Managing Director at MAP and SPE member, held a discussion with David Beckworth, senior research fellow at the Mercatus Center at George Mason University whose research focuses on the targets, tools, operating system, and governance of the Federal Reserve. David is also the host of the widely known Macro Musings podcast.
 
In the interview, David and Filippo discuss the performance of the Fed during the recent inflationary cycle, why they were behind the curve and what to expect going forward. As part of the conversation about Fed’s decision making David outlines the current framework (FAIT), what were the novelties when it was introduced in 2020 and how it was in part developed in reaction to the pre-pandemic zero bound world - and so how it may be now out of date. The discussion then focused on the upcoming Fed framework review and what changes we should expect: Filippo and David explored Nominal GDP targeting and how it would lead to potential different outcomes in monetary policy. It is a very interesting option and one that has much to be recommended for – we may see papers on a practical implementation in forthcoming paper soon. In the meantime see link for more information:

https://www.adamsmith.org/research/the-urgent-need-for-ngdp-targeting
https://www.mercatus.org/media/46356/download

The final part of the interview focused on David’s wonderful podcast series now at its 458th episodes. It is one of the longest running and most distinguished podcast and it was good to get some insights from David about his experience and what he learned from guests. There is also a Chat Bot based on the interviews – it is fun to use so explore it at: https://ai.macromusings.org/
 
David Beckworth is a senior research fellow at the Mercatus Center at George Mason University and director of the Mercatus Center’s monetary policy program. His primary research focuses on the targets, tools, operating system, and governance of the Federal Reserve, has included work on the US Treasury market, the safe asset shortage, and dollar dominance, and he has been cited by the Wall Street Journal, Financial Times, New York Times, Bloomberg Businessweek, and the Economist. David is also the host of Macro Musings, a weekly podcast on macroeconomics, where, since 2016, he has interviewed hundreds of experts, including regional presidents of the Federal Reserve, Nobel laureates, and leading academics from around the world. Formerly an international economist at the US Department of the Treasury, he earned his PhD in economics from the University of Georgia.

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