59 min

Bill Nelson on How the Fed Fell Behind the Curve Macro Musings with David Beckworth

    • Non-Profit

Bill Nelson is the Chief Economist and an Executive Vice President at the Bank Policy Institute. Bill previously was a deputy director at the Division of Monetary Affairs at the Federal Reserve Board where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. He also worked closely with the BIS on the design of liquidity regulation. Bill joins David on Macro Musings to discuss the Fed's balance sheet, its reduction plans and how the Fed fell behind the curve. Specifically, David and Bill get into whether the Fed regretted its premature tightening period from 2015 to 2018, how the Fed’s focus on the baseline outlook left it not resilient to alternative developments, how concerns over another taper tantrum impacted the Fed’s decision-making, the Fed’s handling of its FAIT framework, and much more. Take the Macro Musings listener survey here.
 
Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings
 
Bill’s Bank Policy Institute profile: https://bpi.com/people/bill-nelson/
Bill’s American Banker archive: https://www.americanbanker.com/author/william-nelson-ab3618
 
Related Links:
“Plane Crashes and Falling Behind the Curve” by Bill Nelson
https://www.linkedin.com/pulse/plane-crashes-falling-behind-curve-bill-nelson/?trk=articles_directory
“Guest post: A former Fed insider explains the internal debate over QE3” by Bill Nelson
https://www.ft.com/content/254befb7-10f8-3f2c-a9a8-bc6226a6f1db
"The Potential Ineffectiveness of Policy at the Zero Bound" (Memo to the Federal Reserve Board of Governors) by Bill Nelson and Brian Sack
https://www.dropbox.com/s/fv21og7vpx1izml/BillNelsonMemo.pdf?dl=0 
“Interpreting the Significance of the Lagged Interest Rate in Estimated Monetary Policy Rules” by William B. English, William R. Nelson, and Brian P. Sack
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=314425
 
David’s Twitter: @DavidBeckworth
David’s blog: http://macromarketmusings.blogspot.com/

Bill Nelson is the Chief Economist and an Executive Vice President at the Bank Policy Institute. Bill previously was a deputy director at the Division of Monetary Affairs at the Federal Reserve Board where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. He also worked closely with the BIS on the design of liquidity regulation. Bill joins David on Macro Musings to discuss the Fed's balance sheet, its reduction plans and how the Fed fell behind the curve. Specifically, David and Bill get into whether the Fed regretted its premature tightening period from 2015 to 2018, how the Fed’s focus on the baseline outlook left it not resilient to alternative developments, how concerns over another taper tantrum impacted the Fed’s decision-making, the Fed’s handling of its FAIT framework, and much more. Take the Macro Musings listener survey here.
 
Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings
 
Bill’s Bank Policy Institute profile: https://bpi.com/people/bill-nelson/
Bill’s American Banker archive: https://www.americanbanker.com/author/william-nelson-ab3618
 
Related Links:
“Plane Crashes and Falling Behind the Curve” by Bill Nelson
https://www.linkedin.com/pulse/plane-crashes-falling-behind-curve-bill-nelson/?trk=articles_directory
“Guest post: A former Fed insider explains the internal debate over QE3” by Bill Nelson
https://www.ft.com/content/254befb7-10f8-3f2c-a9a8-bc6226a6f1db
"The Potential Ineffectiveness of Policy at the Zero Bound" (Memo to the Federal Reserve Board of Governors) by Bill Nelson and Brian Sack
https://www.dropbox.com/s/fv21og7vpx1izml/BillNelsonMemo.pdf?dl=0 
“Interpreting the Significance of the Lagged Interest Rate in Estimated Monetary Policy Rules” by William B. English, William R. Nelson, and Brian P. Sack
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=314425
 
David’s Twitter: @DavidBeckworth
David’s blog: http://macromarketmusings.blogspot.com/

59 min