Here’s a paper and presentation that I co-authored with Dr. Michael Bordo and presented at the November 2025 Shadow Open Market Committee meeting. “Monetary Policy Responses to Shocks” analyzes the history of shocks — the Great Inflation of 1965-1982, the Great Financial Crisis and Covid, plus an array of minor disturbances — and how the Fed responds to them. We find that the Fed has responded unsystematically, and often in ways that extend and accentuate the costs imposed by the original shock.
Paper: Monetary Policy Responses to Shocks (Michael D. Bordo and Mickey D. Levy, Nov. 7, 2025, Shadow Open Market Committee)
Power Point: Monetary Policy Responses to Shocks (Michael D. Bordo and Mickey D. Levy, Nov. 7, 2025, Shadow Open Market Committee)
The SOMC meeting, the first in its partnership with the Center for Financial Stability, included great presentations on Fed independence, Fannie and Freddie, and financial stresses.