Shadow Open Market Committee meeting: "Exiting, Succession, and the Future of the Fed"

Read the full report here.

The Fall 2013 Shadow Open Market Committee Meeting featured six papers and a presentation by Esther George, president of the Kansas City Federal Reserve. Discussion centered around the Federal Reserve's role and how its recent policy decisions will affect the economy. The presenters put forward innovative ideas that will stimulate future monetary policy debate.



Columbia University professor Charles Calomiris questioned the wisdom and necessity of macro-prudential monetary policy. (read here)



Mickey Levy of Blenheim Capital Management criticized the Federal Reserve’s forward guidance inconstancies in light of faulty FOMC forecasts. (read here)



Rutgers University professor Michael Bordo suggested that financial crises usually recover quickly and that real estate is dragging this particular recovery down—not the severity of the crisis. (read here)



Carnegie Mellon University professor Bennett McCallum discussed the merits and types of nominal GDP targeting as a Federal Reserve policy. (read here)



Boston College professor Peter Ireland evaluated the Federal Reserve’s quantitative easing exit strategy and offered his preferred actions. (read here)



Carnegie Mellon University professor Marvin Goodfriend proposed criteria for confirming the new Federal Reserve Chairman which focused on the scope of the bank’s legitimate functions and actions.(read here)

The committee released a joint statement emphasizing the need for the Federal Reserve to concern itself with monetary, not credit policy. Taking limits such as this seriously is a must for the Federal Reserve if it is to maintain its legitimacy as an independent institution. The Senate confirmation process for the new President should focus on the nominee’s perceived role, and limitations, for the Federal Reserve. (read here)