Reflections on Allan Meltzer's Contributions to Monetary Economics and Public Policy

REFLECTIONS ON ALLAN MELTZER’S CONTRIBUTIONS TO MONETARY ECONOMICS AND PUBLIC POLICY

January 4, 2018 Kimpton Hotel Palomar Philadelphia

Sponsored by the Institute for Humane Studies & the Mercatus Center at George Mason University

elcome to the Policy Research Seminar on Reflection’s on Allan Meltzer’s WContributions to Monetary Economics and Public Policy, sponsored by the Institute for Humane Studies (IHS) and the Mercatus Center at George Mason University. You have been invited to this event because we hold your work in high esteem for both its scholarly contributions and for its practical application to our understanding of a free society. We encourage you to join in what promises to be an active and lively conversation, and to draw from your own research and experiences throughout the discussion.

One of the primary goals for this program is to help facilitate scholarly collaboration among the faculty, graduate students, policy experts, and IHS and Mercatus Center staff members in attendance. I hope you see this as a valuable opportunity to get to know dozens of like-minded scholars with similar research interests. We are hosting several world-class speakers who can share their experience and advice on how to flourish, as they have, in the world of monetary economics and public policy. We have found that some of the best conversations from our seminars occur spontaneously in the hallways and during meals and receptions, so please be present for scheduled events.

Thank you again for joining us. We look forward to meeting each of you individually over the course of the seminar, and we hope you benefit as much from this seminar as we benefit from having you in attendance. Please don’t hesitate to let us know if we may do anything to improve your experience.

Sincerely,

Ashley Donohue Academic Talent Development, Director Institute for Humane Studies his full-day seminar is co-sponsored with the Mercatus Center at George Mason University and explores TProf. Allan Meltzer’s contributions to academia and public policy. His recent passing affords a moment of reflection on how the foundations of his research and thinking are relevant to our current Federal Reserve system and frequently changing monetary policies. Featured speakers include experts such as Nobel Laureate and Professor Robert Lucas Jr., and the President and CEO of the Federal Reserve Bank of St. Louis, James Bullard.

Founded in 1961 by Dr. F.A. “Baldy” Harper, the Institute for Humane Studies is the leading institute in higher education dedicated to championing classical liberal ideas and the scholars who advance them. Specifically, we facilitate the impact of the academic community both on and beyond college campuses—partnering with faculty to connect with students through campus programs, connecting scholars to opportunities to further their careers both inside and outside of the academy, and offering current and aspiring professors access to the foremost community of scholars working within the classical liberal tradition.

IHS Policy Research Seminars IHS Policy Research Seminars seek to bridge the gap between academia and policy by encouraging the use of academic research to influence policy change. Seminars give an audience of advanced graduate students, policy experts, and faculty the chance to connect with like-minded individuals and help to facilitate connections with our partner organizations with the goal of producing future research, speaking and publishing opportunities.

The Mercatus Center at George Mason University is the world’s premier university source for market-oriented ideas—bridging the gap between academic ideas and real-world problems. A university-based research center, the Mercatus Center advances knowledge about how markets work to improve people’s lives by training graduate students, conducting research, and applying economics to offer solutions to society’s most pressing problems. Our mission is to generate knowledge and understanding of the institutions that affect the freedom to prosper, and to find sustainable solutions that overcome the barriers preventing individuals from living free, prosperous, and peaceful lives. PROGRAM SCHEDULE

Thursday, January 4th

8:00-9:00 AM | Breakfast and Registration Cret Room

9:00-9:15 AM | Welcome and Seminar Introduction Burnham Ballroom

• Ashley Donohue, Institute for Humane Studies • Ben Klutsey, Mercatus Center at George Mason University

9:15-10:45 AM | Panel 1: Meltzer’s Contributions to the Monetary Transmission Mechanism Burnham Ballroom

• Edward Nelson, Federal Reserve System • Peter Ireland, Boston College • Josh Hendrickson, University of Mississippi • David Beckworth, Mercatus Center at George Mason University Moderator

10:45-11:00 AM | Coffee Break Ballroom Foyer

11:00-12:30 PM | Panel 2: Meltzer’s Contributions to the History of the Federal Reserve Burnham Ballroom

• Michael Bordo, Rutgers University • George Selgin, Cato Institute • Robert Hetzel, Federal Reserve Bank of Richmond • Scott Sumner, Mercatus Center at George Mason University Moderator PROGRAM SCHEDULE

12:30-1:30 PM | Lunch Cret Room

1:30-2:20 PM | Keynote Address Burnham Ballroom

• James Bullard, Federal Reserve Bank of St. Louis

2:20-2:45 PM | Coffee Break Ballroom Foyer

2:45-4:15 PM | Meltzer’s Contributions to Public Policy Thought Burnham Ballroom

• Gerald O’Driscoll Jr., Cato Institute • Robert Lucas Jr., University of Chicago • Charles Plosser, The Hoover Institution, Stanford University • George Selgin, Cato Institute Moderator

4:15-7:00 PM | Afternoon Break

7:00-7:45 PM | Dinner Burnham Ballroom

7:45-8:00 PM | Opportunities at the Institute for Humane Studies Burnham Ballroom

• Ashley Donohue, Institute for Humane Studies

8:00-10:00 PM | Reception Burnham Ballroom SPEAKER BIOS

DAVID BECKWORTH [email protected] David Beckworth is a Senior Research Fellow with the Program on Monetary Policy at the Mercatus Center at George Mason University and a former international economist at the U.S. Department of the Treasury. He is the author of Boom and Bust Banking: The Causes and Cures of the Great Recession and formerly taught at Western Kentucky University. His research focuses on monetary policy, and his work has been cited by the Wall Street Journal, the Financial Times, The New York Times, Bloomberg Businessweek, and The Economist. He has advised congressional staff- ers on monetary policy and has written for Barron’s, Investor’s Business Daily, the New Republic, The Atlantic, and National Review.

MICHAEL BORDO [email protected] Michael D. Bordo is Professor of Economics and Director of the Center for Monetary and Financial History at Rutgers University, New Brunswick, New Jersey. He has held previous academic positions at the University of South Carolina and Carleton University in Ottawa, Canada. He has been a visiting professor at the University of California Los Angeles, Carnegie Mellon University, Princeton University, Harvard University, Cambridge University where he was Pitt Professor of American History and Institutions, and a Visiting Scholar at the IMF, Federal Reserve Banks of St. Louis and Cleveland, the Federal Reserve Board of Governors the Bank of Canada, the Bank of England and the Bank for International Settlement. He also is a Research Associate of the National Bureau of Economic Research, Cambridge, Massachusetts. He has a B.A. degree from McGill University, a M.Sc. (Econ) from the London School of Economics and he received his Ph.D. at the University of Chicago in 1972. He has published many articles in leading journals and written ten books on monetary economics and monetary history. He is editor of a series of books for Cambridge University Press: Studies in Macroeconomic History.

JAMES BULLARD [email protected] James “Jim” Bullard is the President and CEO of the Federal Reserve Bank of St. Louis. He oversees the activities of the Eighth Federal Reserve District, including operations in the St. Louis headquarters and its branches in Little Rock, Ark., Louisville, Ky., and Memphis, Tenn. He also participates on the Federal Reserve’s Federal Open Market Committee, or FOMC, which meets eight times each year to set the direction of U.S. monetary policy. Bullard is a noted economist and scholar, and his positions are founded on research-based thinking and an intellectual openness to new theories and explanations. He is often an early voice for change. In addition, he makes public outreach and dialogue a priority to help build a more transparent and accessible Fed. He regularly engages with many audiences—including academics, policy makers, business and labor organizations, charities, students and media, among other public groups—to discuss monetary policy and the U.S. economy and to help further the regional Reserve banks’ role of being the voice of Main Street. Jim Bullard is active in the community. He is an honorary professor of economics at Washington University in St. Louis, where he also sits on the advisory council of the economics department. In addition, he is a member of the Greater St. Louis Financial Forum, the St. Louis Regional Chamber’s board of directors, the University of Missouri-St. Louis (UMSL) Chancellor’s Council and the St. Cloud State University School of Public Affairs advisory council. He is also chairman of the United Way’s U.S.A. Board of Trustees and a member of the United Way Worldwide board. He is also a member of the Central Bank Research Association’s senior council. A native of Forest Lake, Minn., Bullard received his doctorate in economics from Indiana University in Bloom- ington. He holds Bachelor of Science degrees in economics and in quantitative methods and information systems from St. Cloud State University in St. Cloud, Minn.

JOSH HENDRICKSON [email protected] Josh Hendrickson is an associate professor at the University of Mississippi. His work primarily centers around issues related to monetary theory, history, and policy. He has written extensively on nominal GDP targeting and the political economy of bitcoin. His work has appeared in the Journal of Money, Credit and Banking, the Journal of Economic Dynamics and Control, Macroeconomic Dynamics, the Journal of Economic Behavior and Organization, Eco- nomics & Politics, Economic Inquiry, the Journal of Macroeconomics, and the Southern Economic Journal.

ROBERT HETZEL [email protected] Robert Hetzel received an AB degree in 1967 and a Ph.D. in 1975 both from the Universi- ty of Chicago. While at Chicago, he was in the Money and Banking workshop and did his thesis work under Milton Friedman. He joined the research department at the Federal Reserve Bank of Richmond in 1975, where, as Senior Economist and Research Advisor, he counseled the Bank’s president on matters concerning his participation in FOMC meetings. His research agenda is the evolution of central banking in the modern regime of fiat money. He regularly writes articles on monetary policy in which he continues the Friedman monetarist tradition. His two recent books, both published by Cambridge University Press, are The Monetary Policy of the Federal Reserve: A History (2008) and The Great Recession: Market Failure or Policy Failure? (2012).

PETER IRELAND [email protected] Peter Ireland is the Murray and Monti Professor of Economics at Boston College, a Re- search Associate in the Monetary Economics Program at the National Bureau of Econom- ic Research, and a member of the Shadow Open Market Committee. Before joining the faculty at Boston College, Professor Ireland held positions at Rutgers University and at the Federal Reserve Bank of Richmond. He received his Ph.D. in economics from the University of Chicago in 1991. Professor Ireland’s teaching and research focus on macroeconomics and monetary economics, particularly Federal Reserve policy and its effects on the United States economy. His recent publications includeMonetary Policy, Bond Risk Premia, and the Economy, in the November 2015 issue of the Journal of Monetary Economics, Money and Output: Friedman and Schwartz Revisited, in the September 2016 issue of the Journal of Money, Cred- it, and Banking, and Targeting Money Growth at the Zero Lower Bound, forthcoming in the International Journal of Central Banking.

BENJAMIN KLUTSEY [email protected] Ben Klutsey is the Program Manager for the Financial Markets Working Group and the Program on Monetary Policy at the Mercatus Center at George Mason University. He re- turns to the Financial Markets Working Group, where he previously worked as a research fellow. Prior to his return, he worked with the Institute of International Finance, where he focused on financial regulations, particularly related to liquidity risk management and risk governance. He received his MA in International Commerce and Policy from George Mason University and his BA in Government and Philosophy from Lawrence University.

ROBERT LUCAS JR. [email protected] Robert E. Lucas Jr. is the John Dewey Distinguished Service Professor of Economics at the University of Chicago. He is a Fellow of the Econometric Society, the American Acade- my of Arts and Sciences, and the American Philosophical Society, and a member of the National Academy of Sciences. He is a past president of the Econometric Society and the American Economic Association. In 1995, he received the Nobel Memorial Prize in Economic Sciences. Lucas received his BA in History from the University of Chicago in 1959 and his Ph.D. in Economics in 1964. He was a member of the faculty of the Graduate School of Industrial Administration at Carnegie-Mellon Uni- versity from 1963 until 1974. He joined the Chicago faculty in 1975. Among his books are Studies in Business-Cycle Theory (1981); Rational Expectations and Econometric Practice (1981), co-edited with Thomas Sargent; Models of Business Cycles (1985); and Recursive Methods in Economic Dynamics (1989), with Nancy Stokey and Edward Prescott. His Lectures on Economic Growth were published in 2002, and he published his Collected Papers on Monetary Theory in 2013. EDWARD NELSON [email protected] Edward Nelson is a Senior Adviser at the Division of Monetary Affairs at the Federal Re- serve Board in Washington, DC. As well as working previously at the Board, he held prior positions at the Bank of England, the Federal Reserve Bank of St. Louis, and the University of Sydney. He has published many articles in the field of monetary economics and is author of the books The U.K.’s Rocky Road to Stability (2009, with Nicoletta Batini) and Milton Friedman and Economic Debate in the United States, 1932-1972 (forthcoming). Nelson was a graduate student at the business school at Carnegie Mellon University starting in 1994 and received his Ph.D. in 1998. Allan Meltzer was a member of Nelson’s doctoral dissertation.

GERALD O’DRISCOLL [email protected] Gerald O’Driscoll is a senior fellow at the Cato Institute. He is a widely quoted expert on international monetary and financial issues. Previously the director of the Center for International Trade and Economics at the Heritage Foundation, O’Driscoll was senior editor of the annual Index of Economic Freedom, co-published by Heritage and the Wall Street Journal. He has also served as vice president and director of policy analysis at Citigroup. Before that, he was vice president and economic adviser at the Federal Reserve Bank of Dallas. He also served as staff director of the congressionally mandated Meltzer Commission on international financial institutions. O’Driscoll has taught at the University of California, Santa Barbara; Iowa State University, and New York Uni- versity. He is widely published in leading publications, including the Wall Street Journal. He appears frequently on national radio and television, including Fox Business News, CNBC, and Bloomberg. He is a member of the Mont Pelerin Society, and is president of the Association of Private Enterprise Education. O’Driscoll holds a BA in economics from Fordham University, and an MA and PhD in economics from the University of California, Los Angeles.

CHARLES PLOSSER [email protected] Charles I. Plosser served as president and CEO of the Federal Reserve Bank of Philadelphia from 2006 to his recent retirement in 2015. It was a period of extraordinary turmoil and challenge for the world economy and all policymakers, including the Federal Reserve. He is currently a Visiting Fellow at the Hoover Institution at Stanford University and a member of the Board of Governors of FINRA (Financial Industry Regulatory Authority). Before coming to Philadelphia, Plosser was the John M. Olin Distinguished Professor of Economics and Public Policy and director of the Bradley Policy Research Center at the William E. Simon Graduate School of Business Administration at the University of Rochester, where he also served as dean from 1993 to 2003. His research interests include macroeconomics, monetary theory and policy, econometrics, and finance. He has published articles in the major economic journals and served as co-editor with Robert King of the Journal of Monetary Economics for 20 years. Plosser has been a Visiting Scholar at the Bank of England and the Federal Reserve Bank of Minneapolis. He also has served a as Research Associate at the National Bureau of Economic Research in Cambridge, Massachusetts. In the last decade, Plosser has given over one hundred talks around the world to audiences comprised of academics, the business community and the general public on topics ranging from economics and public policy to management education and forecasting. He earned a BA degree from Vanderbilt University in 1970 and an MBA and Ph.D. in economics from the University of Chicago in 1972 and 1976, respectively.

GEORGE SELGIN [email protected] George Selgin is a senior fellow and director of the Center for Monetary and Financial Alternatives at the Cato Institute and Professor Emeritus of Economics at the University of Georgia. He is the author of The Theory of Free Banking (Rowman & Littlefield, 1988),Bank Deregulation and Monetary Order (Routledge, 1996), Less Than Zero: The Case for a Falling Price Level in a Growing Economy (The Institute of Economic Affairs, 1997),Good Money: Birmingham Button Makers, the Royal Mint, and the Beginnings of Modern Coinage (University of Michigan Press, 2008), and Money: Free and Unfree (Washington, DC: The Cato Institute). Selgin holds a B.A. in economics and zoology from Drew University, and a Ph.D. in economics from New York University.

SCOTT SUMNER [email protected] Scott Sumner is the Ralph G. Hawtrey Chair of Monetary Policy at the Mercatus Center at George Mason University, where he is the director of the Program on Monetary Policy. He is also Professor Emeritus at Bentley University and Research Fellow at the Independent Institute. In his writing and research, Sumner specializes in monetary policy, the role of the international gold market in the Great Depression, and the history of macroeconomic thought. Named by Foreign Policy magazine in 2012 as one of the “top 100 global thinkers,” Sumner has published papers in academic journals including the Journal of Political Economy, Economic Inquiry, and the Journal of Money, Credit and Banking. He is author of the popular economics blog The Money Illusion and a contributor to EconLog.com His work has appeared in media outlets nationwide and beyond, including The New York Times, Wall Street Journal, BBC, CNBC, The Economist, Financial Times, Politico, The National Interest, and The American. Sumner received his PhD and MA in economics from the University of Chicago and his BA in economics from the University of Wisconsin. STAFF BIOS

EMILY CHAMLEE WRIGHT [email protected] Dr. Emily Chamlee-Wright, President of the Institute for Humane Studies, joined IHS in November 2016 with an accomplished record as an academic leader, scholar and educator. From 2012 to 2016 she served as Provost and Dean at Washington College and was previously the Elbert H. Neese Professor of Economics and Associate Dean at Beloit College. Emily earned her PhD in economics from George Mason University and has published six books. She is a former W.K. Kellogg National Leadership Fellow and received the Excellence in Teaching Award from Beloit College, a Distinguished Alumna Award from George Mason University, and the 2014 Charles G. Koch Outstanding IHS Alum Award.

JUSTIN DAVIS [email protected] Justin Davis serves as the Academic Talent Development Program Manager at IHS, where he hopes to facilitate the advancement of classical liberal ideas by connecting the worlds of academia and policy. He completed his M.A. in Economics at George Mason University in 2016 and previously attained his B.S. in Business Administration from The Citadel in Charleston, South Carolina. His research interests include monetary institutions, entrepreneurship, and institutional development. Justin also served in the United States Army’s Corps of Engineers for three years as the squad leader of a bridge erection team. His army tenure stationed him in Fort Knox, Kentucky and included a deployment to Afghanistan with the 502nd Engineer Company, where he was a part of the first multi-role bridge company in the country. Justin currently lives in Capitol Hill with his wife Sarah, an interior and graphic designer, and their dog Max.

ASHLEY DONOHUE [email protected] Ashley Donohue is the Academic Talent Development Director at IHS. In this role, she oversees programs that provide networking, curriculum, and academic and policy research support for faculty interested in the study and advancement of freedom. She holds a MA in History as well as BAs in History and Government. Ashley has interned with the Cato Institute and the U.S. Department of State and has previously taught U.S. History at the university level. She has two Chihuahuas named Jack and Espresso, and enjoys practicing yoga, traveling, and drinking too much coffee.

EMILY RHORICK [email protected] Emily Rhorick is an Events Manager with IHS. She graduated from the College of Charleston in 2015 where she majored in Business Administration and Economics. While in school Emily worked for the Bastiat Society and volunteered for Students For Liberty where she served as a Campus Coordinator, Southeast Regional Director, and eventually the Co-Chair of the North American Execu- tive Board. When not working to advance liberty she enjoys learning entirely too much about superheroes and watching Buckeye football. HOTEL FLOOR PLAN

Kimpton Hotel Palomar Philadelphia 117 S 17th St, Philadelphia, PA 19103 NOTES TheIHS.org facebook.com/InstituteforHumaneStudies twitter.com/TheIHS NOTES TheIHS.org facebook.com/InstituteforHumaneStudies twitter.com/TheIHS NOTES

If you are interested in becoming a partner organization, or would like to make a general inquiry about the Institute for Humane Studies’s Policy Research Seminars, please contact Justin Davis at [email protected].

Please visit TheIHS.org or email [email protected] for more information on future IHS Policy Research Seminars.