Implementing Monetary Policy Post‑Crisis: What Do We Need to Know?

Antoine Martin, Patricia C. Mosser, and Julie Remache

Columbia University’s School of International and Public Affairs and the New York Fed co-sponsored a recent workshop to discuss important issues related to monetary policy implementation. The May 4 event, held at Columbia, supports the extended effort that the Federal Reserve has undertaken to evaluate potential long-run monetary policy implementation frameworks, which was announced at a Federal Open Market Committee meeting last July.

In opening remarks, Simon Potter, who heads the Markets Group at the New York Fed, reviewed the mechanics of how the Fed once implemented monetary policy, innovations in response to the financial crisis, and what an implementation framework could look like going forward. The workshop was then divided into three sessions covering these themes:

• Lessons from the crisis and post-crisis experience
• What is the future of balance sheet policies? How does the crisis experience inform the structure of central bank balance sheets in “normal” times?
• How should central banks steer money market interest rates?

Each session consisted of an opening presentation, followed by two discussants who added their perspective to the issue. Workshop participants included international experts in monetary policy design and implementation—academics, industry experts, as well as current and former central bankers—which enabled a vigorous and open discussion about future monetary policy implementation developments.

Donald Kohn, Senior Fellow at the Brookings Institution, closed the workshop by offering his perspective on the most interesting and important topics discussed during the day. The workshop agenda, below, includes links to all the presentations. It can also be found on the New York Fed’s website.

Opening remarks
Simon Potter | Speech

Lessons from the crisis and post-crisis experience

Chair: James Clouse
Opening presentation: Marvin Goodfriend | Presentation

Discussants:
Benjamin Friedman | Presentation
Brian Sack | Presentation

What is the future of balance sheet policies? How does the crisis experience inform the structure of central bank balance sheets in “normal” times?

Chair: Lorie Logan
Opening presentation: Paul Tucker | Paper

Discussants:
Masaaki Shirakawa | Presentation
Peter Stella | Presentation

How should central banks steer money market interest rates?

Chair: Jamie McAndrews
Opening presentation: Francesco Papadia | Presentation

Discussants:
Lou Crandall | Presentation
Todd Keister | Presentation

Wrap-up observations
Donald Kohn | Remarks

Disclaimer

The views expressed in this post are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System. Any errors or omissions are the responsibility of the authors.

---

Antoine Martin is a senior vice president in the Bank’s Research and Statistics Group.

Patricia C. Mosser is a senior research scholar on the faculty of the School of International and Public Affairs at Columbia University.

Julie Remache is a senior vice president in the Federal Reserve Bank of New York’s Markets Group.

How to cite this blog post:
Antoine Martin, Patricia C. Mosser, and Julie Remache, “Implementing Monetary Policy Post-Crisis: What Do We Need to Know?,”
Federal Reserve Bank of New York Liberty Street Economics (blog), July 15, 2016, http://libertystreeteconomics.newyorkfed.org/2016/07/implementing-monetary-policy-post-crisis-what-do-we-need-to-know.html.