Monetary Mystique and the Fed’s Path Toward Increased Transparency

“Monetary Mystique and the Fed’s Path Toward Increased Transparency,” May 2022, paper. Forthcoming in Essays in Honor of Marvin Goodfriend: Economist and Central Banker, Federal Reserve Bank of Richmond.

Abstract

Marvin Goodfriend’s paper “Monetary Mystique: Secrecy and Central Banking” is a masterpiece: It is an extremely well-written, meticulous, and fair analysis and critique of the Federal Reserve’s defense of its practice of secrecy in monetary policy and central banking. His critique was devastating, and he completely demolished the Federal Open Market Committee’s (FOMC) arguments in the most precise and convincing way. Nevertheless, it took the Fed many years to reach the current standards of transparency and accountability in monetary policy.