How Does Monetary Policy Actually Work?

Thursday October 22, 2015

Overview

Bearish investors have long predicted that the Fed’s bond buying would spur inflation and devalue the dollar. But since the 2008 financial crisis, neither prediction has come true. What gives?

This seminar explores the nuts and bolts of monetary operations, and the extent to which how the Federal Reserve’s policies do (and do not) impact inflation, the economy, and the U.S. fiscal deficit. Questions to be addressed include:

  • How does Quantitative Easing (QE) work?
  • Should the Federal Reserve raise interest rates?
  • How do the Federal Reserve’s policies affect the conduct of fiscal policy?

Participants

Speakers:

Participant Profile

Marshall Auerback

Director of Institutional Partnerships
Institute for New Economic Thinking

Marshall Auerback has 30 years’ experience in the investment management business, serving as a global portfolio strategist for Pinetree Capital, a Canadian-based fund management group. He also serves as an economic consultant to PIMCO, the world’s largest bond fund management group, a Research Associate for the Levy Institute at Bard College, and a Research Fellow for the Economists for Peace and Security.

Participant Profile

Zoltan Poszar

Director
Department of Global Strategy and Research, Credit Suisse

Zoltan Pozsar, is a Director of the Global Strategy and Research Department at Credit Suisse and former senior adviser at the U.S. Department of the Treasury, is an expert on global macroeconomic affairs, central banking and finance.

Participant Profile

L. Randall Wray

Professor of Economics and Research Director
Center for Full Employment and Price Stability at the University of Missouri-Kansas City

L. Randall Wray, Ph.D. is a Professor of Economics and Research Director for the Center for Full Employment and Price Stability at the University of Missouri-Kansas City. He is also a Senior Scholar at the Levy Economics Institute of Bard College, New York.

Moderator: 
Participant Profile

Karen Mracek

Economics Reporter
Market News International

Karen Mracek covers the Federal Reserve, economics and monetary policy for the Market News International (MNI). She previously did business forecasting and economic reporting for Kiplinger Washington Editors, providing commentary on employment, inflation, housing, consumer credit and trade since 2010.

Resources