Independence or Marriage?

Interactions Between Monetary and Fiscal Policy

Feb 8, 2013

Overview

This seminar examines the legal and operational relationship between central banks and treasury departments.

Questions to be addressed include:

  • Should fiscal and monetary policy be viewed separately from each other?
  • Is central bank “independence” an obsolete concept?
  • What are the political implications of recent unorthodox central banking practices such as Quantitative Easing (QE), Operation Twist and Interest-On-Excess-Reserves (IOER)?
  • What role should central banks have in promoting full employment and price stability?

Participants

Speaker
Timothy A. Canova
Professor of Law and Public Finance
Nova Southeastern University Shepard Broad Law Center.
Speaker
Scott Fullwiler
James A. Leach Chair in Banking and Monetary Economics
Wartburg College
Moderator
Dean Baker
Co-Director
Center for Economic and Policy Research

Core Readings

The Federal Reserve We Need

Canova, Timothy A. The Federal Reserve We Need., 2010.

Paying Interest On Reserve Balances: It’s More Significant Than You Think

Fullwiler, Scott T.. “Paying Interest on Reserve Balances: It’s More Significant than You Think.” (2004).

The Consolidated Government Sector

Wilson, Neil The Consolidated Government Sector., 2013.

Scott Fullwiler

Understanding The Permanent Floor – An Important Inconsistency In Neoclassical Monetary Economics

Fullwiler, Scott T. Understanding the Permanent Floor – An Important Inconsistency in Neoclassical Monetary Economics., 2013.

Helicopter Drops Are FISCAL Operations

Fullwiler, Scott T. Helicopter Drops Are FISCAL Operations., 2010.

Modern Central Bank Operations – The General Principles

Fullwiler, Scott T.. “Modern Central Bank Operations – The General Principles.” (2008).

Interest Rates And Fiscal Sustainability

Fullwiler, Scott T.. “Interest Rates and Fiscal Sustainability.” (2006).

Marc Lavoie

New Directions In Monetary Economics: An Interview With Marc Lavoie – Part I

Lavoie, Marc, and Philip Pilkington New Directions in Monetary Economics: An Interview with Marc Lavoie – Part I., 2012.

New Directions In Monetary Economics: An Interview With Marc Lavoie – Part II

Lavoie, Marc, and Philip Pilkington New Directions in Monetary Economics: An Interview with Marc Lavoie – Part II., 2012.

Changes In Central Bank Procedures During The Subprime Crisis And Their Repercussions On Monetary Theory

Lavoie, Marc. “Changes in Central Bank Procedures During the Subprime Crisis and Their Repercussions on Monetary Theory.” (2010).

 Procedures.pdf

Timothy Canova

Interview On Federal Reserve Reform

Canova, Timothy A. Interview on Federal Reserve Reform., 2012.

Black Swans And Black Elephants In Plain Sight: An Empirical Review Of Central Bank Independence

Canova, Timothy A.. “Black Swans and Black Elephants in Plain Sight: An Empirical Review of Central Bank Independence.” (2011).

Related Materials

Jumping The Abyss: Marriner S. Eccles And The New Deal, 1993-1940

Jumping the Abyss: Marriner S. Eccles and the New Deal, 1993-1940., 2012.

After The Accord: Reminiscences On The Birth Of The Modern Fed

Hetzel, Robert L., and Ralph F. Leach. “After the Accord: Reminiscences on the Birth of the Modern Fed.” (2001).

 leach.pdf

The Treasury-Fed Accord: A New Narrative Account

Hetzel, Robert L., and Ralph F. Leach. “The Treasury-Fed Accord: A New Narrative Account.” (2001).

 NEW.pdf

Guess Which Policy Your Central Bank Will Pursue

Baker, Dean. “Guess which policy your central bank will pursue.” (2011).

From Central Bank Independence To Democratic Public Finance

Kervick, Dan From Central Bank Independence to Democratic Public Finance., 2013.