Bill Nelson is a chief economist at the Bank Policy Institute and was previously a deputy director of the Division of Monetary Affairs at the Federal Reserve Board, where his responsibilities included monetary policy analysis, discount window policy analysis, and financial institution supervision. Bill has written widely on the Fed's operating system, and he joins the show today to talk about it, as well as the recent turmoil in money markets. David and Bill also discuss the possibility of the Fed moving back to a corridor system, the stigma surrounding banks using the discount window, and the story of recent supply and demand dislocation in repo markets. Transcript for the episode: https://www.mercatus.org/bridge/podcasts/10072019/bill-nelson-repo-market-stress-feds-operating-system-and-prospects-standing Related Links: Link to supply and demand curves mentioned in the episode: http://macromarketmusings.blogspot.com/2019/09/the-repo-man-cometh.html *Two Little-Noticed and Self-Inflicted Causes of the Fed's Current Monetary Policy Implementation Predicament* by Bill Nelson https://bpi.com/two-little-noticed-and-self-inflicted-causes-of-the-feds-current-monetary-policy-implementation-predicament/ *Fed at a Crossroads* by Bill Nelson https://bpi.com/fed-at-a-crossroad/ *Bank Regulations and Turmoil in Repo Markets* by Francisco Covas & Bill Nelson https://bpi.com/bank-regulations-and-turmoil-in-repo-markets/ *What Just Happened in Money Markets, and Why it Matters* by Bill Nelson https://bpi.com/what-just-happened-in-money-markets-and-why-it-matters/ *Impending Money Market Volatility Prompts Warning Light for LCR Tune-Up* by Bill Nelson & Brett Waxman https://bpi.com/impending-money-market-volatility-prompts-warning-light-for-lcr-tune-up/ *Design Challenges for a Standing Repo Facility* by Bill Nelson https://bpi.com/design-challenges-for-a-standing-repo-facility/ *A Former Fed Insider Explains the Internal Debate over QE3* by Bill Nelson https://ftalphaville.ft.com/2018/02/16/2198845/guest-post-a-former-fed-insider-explains-the-internal-debate-over-qe3/ *Get Up Off The Floor* By Bill Nelson https://www.hoover.org/sites/default/files/research/docs/cochranepalermotaylor_currencies_ch9.pdf *FOMC Go Home* by Bill Nelson https://bpi.com/fomc-go-home/ *Understanding the Fed's Implementation Framework Debate* by Bill Nelson https://bpi.com/wp-content/uploads/2018/11/Understanding_the_Fed's_implementation_framework_debate_Review05.pdf David's blog: macromarketmusings.blogspot.com David's Twitter: @DavidBeckworth

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“What did the council decide on item 42?” — answered with the speaker and the moment.