Episode 016: Fed independence

About this episode

Marvin Barth discusses the risks to Federal Reserve independence with leading economists and former policymakers.

In this special episode of Thematic Edge, recorded around the Hoover Institution Monetary Policy Conference at Stanford University, Marvin Barth explores why the greatest risks to Federal Reserve independence may be the Fed’s own policy errors, institutional overconfidence, and expanding mandate. Through conversations with leading economists, former policymakers, and Fed officials, the discussion examines the growing tension between fiscal sustainability, monetary policy, bank regulation, and political control. Key themes * Why central bank independence ultimately depends on fiscal credibility and political legitimacy * How overreliance on economic models weakened the Fed’s ability to understand structural change and real economy conditions * The growing overlap between monetary policy, fiscal dominance, and bank regulation * Why the Fed’s expanded role as a bank regulator has made the institution a political target in its own right * John Cochrane explains the fiscal theory of the price level and why inflation ultimately reflects confidence in government solvency * Historical parallels between fiscal stress, money creation, and political pressure on central banks * Why the next…

People in this episode

Host: Marvin Barth

Guests: John Cochrane, Michael Bordo, Randy Quarles, Darrell Duffie

Topics covered

• Federal Reserve independence
• monetary policy
• fiscal sustainability
• bank regulation
• political control
• economic models
• inflation

Keywords

• Federal Reserve
• monetary policy
• fiscal credibility
• bank regulation
• political legitimacy
• inflation
• economic models

Mentioned in this episode

Organizations: Hoover Institution

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