Jon Hartley on the Shadow Open Market Committee and Macroeconomic Policy

Macro Musings with David Beckworth

Jon Hartley is a macroeconomist and affiliated scholar at the Mercatus Center, and he is also the host of a Hoover Institution podcast titled, *Capitalism and Freedom in the 21st Century.* Jon joins David on Macro Musings to talk about the Hoover Institution’s recent monetary policy conference, *A 50-Year Retrospective on the Shadow Open Market Committee and its Role in Monetary Policy* as well as some of his own related work. Specifically, Jon and David also discuss the origins, purpose, and influence of the Shadow Open Market Committee, the tension between the fiscal theory of the price level and Fed policy, the significance of government debt management, and more.

DISCLAIMER: The views expressed herein are those of the authors and should not be attributed to the IMF, its Executive Board, or its management.

Transcript for this week’s episode.

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Jon’s podcast: Capitalism and Freedom in the 21st Century

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Related Links:

*A 50-Year Retrospective on the Shadow Open Market Committee and its Role in Monetary Policy* - An event hosted by the Hoover Institution

*The International Public Debt Valuation Puzzle: Testing the Fiscal Theory of the Price Level Across Countries and Time* by Jon Hartley, Matyas Farkas, and J.R. Scott

*Does Government Debt Management Matter? High Frequency Identification from U.S. Treasury Quarterly Refunding Announcements* by Jon Hartley and Lorenzo Rigon

*The U.S. Public Debt Valuation Puzzle* by Hanno Lustig, Zhengyang Jiang, Stijn Van Nieuwerburgh, and Mindy Xiaolan

*The Real Effects of Monetary Expansions: Evidence from a Large-scale Historical Experiment* by Nuno Palma

*Chronicle of a Deflation Unforetold* by Francois Velde

Timestamps:

(00:00:00) – Bumper

(00:00:41) – Intro

(00:04:50) – The Origins, Purpose, and Influence of the Shadow Open Market Committee

(00:13:18) – Why Has Money Fallen Out of Favor?

(00:22:31) – How Well Does the Fiscal Theory of the Price Level Hold Up?

(00:34:58) – The Tension Between the Fiscal Theory of the Price Level and Fed Policy

(00:40:58) – Does Government Debt Management Matter?

(00:51:10) – The Floor System, Quantitative Easing, and the Keys to Economic Growth

(00:59:41) – Outro