2024-07-08
55 分钟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 Stephen Kelly.
Steven is the associate director of research at the Yale program on Financial Stability.
Steven joins us today to discuss the financial stability implications of the discount window.
Stephen, welcome back to the program.
Great to be back, David.
It's great to have you on.
And I am doing this show because I saw you moderate a panel that the Atlanta Fed put together for its annual financial conference.
And it was a really fascinating conversation.
But before we get into that, Stephen, would you share with us a bit your center there, what you're doing on financial stability?
Yeah.
So we're sort of based on the fun presupposition that financial crises are not going to be prevented in every state of the world.
And if you think about it, I mean, you don't want to design a system where the probability of a financial crisis is zero.
Right.
That's not the optimal social percentage.
And so really what we have here is freedom to think about crisis fighting exclusively.
I mean, the sort of rule of crisis fighting policy amongst several international organizations is like, don't talk about fight club.
And some of that is very real because the second Jay Powell comes out and says, well, we're thinking a lot about how to fight financial crises, people get nervous, right?