Megan Greene and Eric Lonergan on Dual Interest Rates and the Prospects of Average Inflation Targeting

Megan Greene is a global economist and Senior Fellow at Harvard University School, and Eric Lonergan is an economist and macro fund manager at M&G Investments. Both Megan and Eric are returning guests of the show, and they re-join Macro Musings to discuss dual interest rates and the potential power it brings to central banks. Specifically, they discuss the current constraints on central banks’ toolkit, how the example of the ECB targeting TLTRO’s illustrates the potential of dual interest rates, why the concern over fiscal versus monetary policy is misunderstood, and whether the Fed’s new average inflation targeting mandate can be successfully implemented.   Transcript for the episode can be found here.   Megan’s Twitter: @economistmeg Megan’s website: https://economistmeg.com/about/ Megan’s Financial Times archive: https://www.ft.com/megan-greene   Eric’s Twitter: @ericlonners Eric’s blog: https://www.philosophyofmoney.net/ Eric’s M&G Investments profile: https://www.mandg.co.uk/investor/fund-managers/eric-lonergan/   Related Links:   *Dual Interest Rates Give Central Banks Limitless Firepower* by Eric Lonergan and Megan Greene https://voxeu.org/article/dual-interest-rates-give-central-banks-limitless-fire-power   *A Misplaced Faith in the Power of Central Banks* by Greg Ip https://www.wsj.com/articles/a-misplaced-faith-in-the-power-of-central-banks-11583256163   David’s Twitter: @DavidBeckworth David’s blog: http://macromarketmusings.blogspot.com/