There's a lot of buzz going on now about the Fed's role in the economy, and the cry has gone up to end the Fed due to dissatisfaction with the Fed's policy and actions in the crisis.
What does MMT say about the Fed?
A patient in need by L. Randall Wray and Micah Hauptman
It's Time to Rein In the Fed by Scott Fullwiler and L. Randall Wray
Proposals that Happen to Be within the Mainstream Paradigm by Warren Mosler
Modern Monetary Theory - A Primer on the Operational Realities of theMonetary System by Scott T. Fullwiler
According to MMT economists, the ideal solution would not be reforming the Fed but formally consolidating it with the Treasury department, since they are already informally consolidated in the way they operate on a day to day basis.
Consolidation of the Fed under the Treasury Department would put monetary policy under the control of the executive branch, with fiscal policy in control of the legislative branch. In this way both monetary and fiscal policy would be in the hands of elected officials accountable to voters instead of monetary policy being in the hands of interested technocrats who are unelected and unaccountable.
(h/t to Michael Stevens at Multiplier Effect, Man Cannot Live by Fed Alone)
