Bill Nelson on the Future of Central Bank Operating Systems

Bill Nelson is a Chief economist and an executive vice president at the Bank Policy Institute. Bill returns to the show to discuss the changes at many central banks around the world from a supply-driven floor system to a demand-driven floor system and how the Fed has been resistant to this change. Check out the transcript for this week’s episode, now with links. Recorded on March 6th, 2025 Subscribe to David's Substack: Macroeconomic Policy Nexus Follow David Beckworth on X: @DavidBeckworth Follow the show on X: @Macro_Musings Check out our new AI chatbot: the Macro Musebot! Join the new Macro Musings Discord server! Join the Macro Musings mailing list! Check out our Macro Musings merch! Subscribe to David's new BTS YouTube Channel  Timestamps: (00:00:00) – Intro (00:01:35) – Trend Toward a Demand-Driven Ceiling System (00:07:32) – Will the Fed Follow Suit? (00:13:11) – Bank of England’s New Policy Implementation Framework (00:21:33) – Bill’s Suggestions for the Fed’s Implementation Framework (00:39:18) – Responding to Lorie’s Case for the Floor System (00:59:11) – Outro