Interview with James Pethokoukis:
Beckworth examines the Federal Reserve and monetary policy through the lens of market monetarism, a 21st century update of the monetarist approach of Milton Friedman. Most folks who identify as market monetarists have been in favor of the Fed’s bond-buying, or “quantitative easing,” program. They don’t think it’s been executed perfectly, however. If the Fed’s actions had been accompanied by a stated intention to target the level of nominal GDP, there’s a strong case that QE could have been far smaller yet far more effective. Still, QE has likely helped the economy and thus been worth doing.