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David Andolfatto
The views and opinions expressed by me in this blog are my own and should in no way be attributed to the Federal Reserve Bank of St. Louis, or to the Federal Reserve System.

David Andolfatto: Macro Mania

David Andolfatto, Vice President of the St. Louis Fed, created MacroMania as a resource for people wanting a better understanding the Fed’s marcoeconomic policy. His commentary is incisive and thorough, particularly his thoughts on Bitcoin and blockchain technology.

Macroeconomic Consequences of the Pandemic with David Andolfatto, Beata Javorcik and Ricardo Reis

The dramatic extension of the role of the state since early 2020, the implications of fiscal and monetary choices for inflation, the burden of public debt, the rapid evolution of digital currencies are contributing to a highly uncertain macroeconomic outlook. The speakers will discuss prospects, risks, and the policy challenges and choices for both advanced and emerging economies.

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The Fed Comes to MakerDAO | Speaker Series feat. Dr. David Andolfatto

Dr. David Andolfatto, the Senior Vice President of the St. Louis Federal Reserve, sits down with Chris Cameron of the MakerDAO community to discuss regulatory concerns, monetary policies, large financial market's effects on one another, and more. Dr. David Andolfatto: "Bio" - https://bit.ly/3qDF3gr Twitter - @dandolfa MakerDAO Chat - Chat.Makerdao.com Forum - Forum.MakerDAO.com Chris Cameron Forum - PaperImperium Chat - @PaperImperium *Disclaimer: This update is assembled by...

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Labor Force Participation Gaps Between the U.S. and Canada

Am hearing some talk about whether the U.S. labor market can fully recover to its pre-Covid19 levels. Is it possible that a sizeable number of workers with marginal attachment to the workforce decide to remain out of the labor force? For example, this crisis, unlike the one that preceded it, has been associated with large increases in personal wealth. Workers on the cusp of retiring may now choose to do so earlier? (This is just one of the many stories I hear.)For what it's worth, I thought...

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On the Role and Future of Cryptocurrencies

My former colleague Howard Wall asked me to join Lawrence White yesterday evening to discuss the role and future of cryptocurrencies at an event hosted by the Hammond Institute for Free Enterprise. It was a great honor to share the stage with Larry. I've been thinking about cryptocurrencies for a long time; many of my writings and talks on the subject can be found here. My thoughts on the subject are evolving as I learn more about the phenomenon. For what it's worth, I thought I'd share my...

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A Natural Rate of Interest

This post was motivated by a conversation with Eric Lonergan. It began with a simple question: what should be the interest rate paid on reserves? I answered that according to theories I'm familiar with, reserves should earn the "natural" rate of interest, which I defined as the sum of population and productivity growth. So, assuming 2% "real" growth and 2% inflation, reserves (and government debt more generally) should be yielding around 4%. I think it's fair to say most people did not find...

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Is it time for some unpleasant monetarist arithmetic?

The title of this post alludes to a paper written by Tom Sargent and Neil Wallace 40 years ago "Some Unpleasant Monetarist Arithmetic." The startling conclusion of this paper is that a central bank (limited to interest rate policy and/or open market operations) does not have unilateral control over the long-run rate of inflation. The result is made all the more powerful by the fact that it relies mostly on arithmetic and only minimally on theory. So, what's the basic idea? First, begin with...

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A Journey in Macroeconomic Thinking

I've been thinking a bit lately about theories of the business cycle (a lot of time for reflection in these days of COVID-19). At least, I've been thinking of the way some of these theories have evolved over my lifetime and from the perspective of my own training in the field. From my (very narrow) perspective as a researcher and advisor at a central bank, the journey beginning c. 1960 seems like it's taken the following steps: (1) Phillips Curve and some Natural Rate Hypothesis; (2) Real...

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David Andolfatto on Central Bank Digital Currencies (CBDC)

Paul Buitink talks to St. Louis Fed economist David Andolfatto about Central Bank Digital Currencies (CBDC). What are they, do we need them at all and can will they co-exist with crypto-currencies. A deep dive into design, pros and cons. Follow David at: https://twitter.com/dandolfa Follow Paul at: https://twitter.com/paulbuitink

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