Monetary Policy


Federal Reserve Policy and Emerging Markets

Author: Benn Steil

In his testimony before the House Committee on Financial Services' Subcommittee on Monetary Policy and Trade, Benn Steil argues that changes in U.S. monetary policy can have significant impact on emerging-market capital inflows and outflows and that the resulting exchange rate movements against the dollar can have large and rapid effects on the level of inflation and exports.

See more in Global; Monetary Policy


Bernanke Is Calibrating the Markets Into Fits

Authors: Benn Steil and Dinah Walker
Financial News

Benn Steil and Dinah Walker explain the market massacre following Ben Bernanke's press conference on June 19. Bernanke's repeated statements that a key tool of current Fed policy, asset purchases, would be "calibrated" to employment data, each month's publication of which can imply a major shift in the unemployment trend line, suggests that Fed tightening could begin as early as the middle of next year—nearly a year and half earlier than the Fed had suggested in its pledge statement last fall.

See more in Financial Crises; Monetary Policy


HBO History Makers Series with Paul Volcker

Speaker: Paul Volcker
Presider: Andrew Ross Sorkin

The Home Box Office History Makers Series focuses particular attention on the contributions made by a prominent individual at a critical juncture in international relations. Recent speakers include Stanley McChrystal, Erskine Bowles, and Madeleine K. Albright.

See more in United States; Monetary Policy


Bernanke Should Follow the Advice He Gave to Japan

Authors: Benn Steil and Dinah Walker
Wall Street Journal

Benn Steil and Dinah Walker explain why the Fed's massive holdings of mortgage-backed securities (MBS) are distorting its thinking about the conduct of monetary policy going forward. They propose a novel plan to rectify this, in which the Fed swaps its MBS with the Treasury in return for Treasury securities, which the Fed can sell as part of a normal "exit" from monetary stimulus.

See more in United States; Financial Crises; Monetary Policy