Monday, October 14, 2024
Hoover Institution | Stanford University
Search for a Nominal Anchor. This session included papers presented by SOMC members Peter Ireland and Greg Hess and monetary policy scholar Robert Hetzel. It was moderated by Kevin Warsh, former Governor of the Board of Governors of the Federal Reserve System. Hess described the origins of the concept of a nominal anchor, how the Fed interprets it and its importance in guiding the conduct of monetary policy. Peter Ireland discussed the theoretical foundations of the founders of the SOMC, Karl Brunner and Allan Meltzer, and the importance of nominal GDP as an anchor in conducting monetary policy. Hetzel emphasized the important role of money supply in pursuing stable low inflation.
