Mickey Levy on How to Reboot Fed Policy Ahead of its Upcoming Framework Review

米基·利维 (Mickey Levy) 谈如何在即将到来的框架审查之前重启美联储政策

Macro Musings with David Beckworth

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2024-06-17

58 分钟
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Mickey Levy is Chief Economist for the Americas and Asia for Berenberg Capital Markets, a Wall Street veteran, and a longstanding member of the Shadow Open Market Committee. He and his co-author, Charles Plosser, also have a new paper out titled, *The Fed’s Strategic Approach to Monetary Policy Needs a Reboot.* Mickey joins David on Macro Musings to discuss this paper and its implications for the upcoming Federal Reserve framework review. David and Mickey also discuss the impact and importance of a flat Phillips curve, the Fed’s policy mistakes in the wake of its new flexible average inflation targeting (FAIT) framework, recommendations for how the central bank should approach the next framework review, and much more.   Transcript for this week’s episode.   Mickey’s Twitter: @mickeylevy Mickey’s website   David Beckworth’s Twitter: @DavidBeckworth Follow us on Twitter: @Macro_Musings   Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server!   Join the Macro Musings mailing list! Check out our Macro Musings merch!   Related Links:   *The Fed’s Strategic Approach to Monetary Policy Needs a Reboot* by Mickey Levy and Charles Plosser   Timestamps:   (00:00:00) – Intro   (00:01:50) – Mickey Levy’s Career Path and Takeaways from the Most Recent Hoover Monetary Policy Conference   (00:07:24) – What Shaped the First Framework Review?   (00:11:56) – The Fed’s Addition of “Symmetric” Inflation   (00:16:32) – Price Level Drift, Deflationary Fears, and Inflation Expectations at the Fed   (00:23:33) – The Impact and Importance of a Flat Phillips Curve   (00:27:34) – Breaking Down the Elements of FAIT and the Fed’s Policy Mistakes   (00:42:11) – Recommendations for the Fed’s Upcoming Framework Review   (00:57:54) – Outro
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  • Welcome to Macro musings, where each week we pull back the curtain and take a closer look at the most important macroeconomic issues of the past, present and future.

  • I am your host, David Beckworth, a senior research fellow at the Mercator center at George Mason University.

  • And I'm glad you decided to join us.

  • Our guest today is Mickey Levy.

  • Mickey is a Wall street veteran and a longstanding member of the Shadow Open Market committee.

  • Mickey and his co author Charlie Ploster have a new paper out titled the Fed's strategic approach to monetary Policy needs a reboot.

  • Mickey joins us today to discuss this paper and its implications for the upcoming Fed framework review.

  • Mickey, welcome to the show.

  • It's a pleasure to be here.

  • Well, it's great to have you on.

  • And I have gotten to know you through the years at Hoover monetary policy conferences and I believe also, also at some Cato monetary policy conferences.

  • And in fact, I was thinking, Mickey, probably the first time, I think I had a long conversation with you.

  • We were in a taxi returning from a Hoover monetary policy conference to the airport.

  • You were in there.

  • And Charlie Ploster, your co author of this paper we're going to talk about, was in there.

  • I remember I was really trying to make the case for nominal GDP targeting to Charlie.

  • He was skeptical about the idea, but you were embracing it.

  • It took Charlie a bit more convincing before he warmed up to the idea.

  • But that was the first time I think we had a meaningful conversation.

  • And since then, I've continued to see you at the conferences.