How Does Monetary Policy Actually Work?

Oct 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

Speaker
Marshall Auerback
Director of Institutional Partnerships
Institute for New Economic Thinking
Speaker
Zoltan Poszar
Director
Department of Global Strategy and Research, Credit Suisse
Speaker
L. Randall Wray
Professor of Economics and Research Director
Center for Full Employment and Price Stability at the University of Missouri-Kansas City
Moderator
Karen Mracek
Economics Reporter
Market News International

Core Resources

Monetary Policy: An Institutionalist Approach

L. Wray, Randall Monetary Policy: An Institutionalist Approach., 2004.

 SSRN-id1010175.pdf

Helicopter Money: Or How I Stopped Worrying And Love Fiscal-Monetary Cooperation

Pozsar, Zoltan, and Paul McCulley Helicopter Money: Or How I Stopped Worrying and Love Fiscal-Monetary Cooperation. Global Society of Fellows, 2013.

 Helicopter_Money_Final1.pdf