Richard Clarida on FAIT, R-Star, and the Future of the Fed’s Framework

Richard Clarida is a well-known academic and policymaker who most recently was the Vice Chair of the Federal Reserve Board of Governors. Richard is currently a professor of economics at Columbia university and is also a managing director at PIMCO. Richard joins David on Macro Musings to talk about his academic and policy work, as well as his outlook for FAIT, the Fed’s framework review, the future of R-Star, and more.

Transcript for this week’s episode.

Richard’s Federal Reserve profile

Richard’s PIMCO archive

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Related Links:

*How the Bundesbank Conducts Monetary Policy* by Richard Clarida and Mark Gertler

*The Science of Monetary Policy: A New Keynesian Perspective* by Richard Clarida, Jordi Gali, and Mark Gertler

*Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory* by Richard Clarida, Jordi Gali, and Mark Gertler

*Monetary Policy Rules in Practice: Some International Evidence* by Richard Clarida, Jordi Gali, and Mark Gertler

Timestamps:

(00:00:00) – Intro

(00:03:04) – Richard Clarida’s Background

(00:11:37) – Bridging the Gap Between Academic Economics and Real-World Markets

(00:21:50) – Richard’s Journey Through the Policy World

(00:36:29) – Constructing the Fed’s FAIT Framework

(00:40:53) – Evaluating the Results of the FAIT Framework

(00:54:17) – The Future of the Fed’s Framework

(00:57:08) – The Future of R-Star

(01:00:50) – Outro