Bill Nelson is chief research officer and chief economist at the Bank Policy Institute and a former deputy director of the Division of Monetary Affairs at the Federal Reserve Board. In Bill's 11th appearance on the show, he discusses how central banks are rethinking their operating systems, the case for a smaller Fed balance sheet and more routine discount window borrowing, the revival of interbank markets, lessons from Silicon Valley Bank, and much more.

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Recorded on July 20th, 2026

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Timestamps
00:00:00 - Intro
00:01:29 - Bill's Work with Central Banks Abroad
00:11:03 - Reducing the Fed's Balance Sheet
00:30:28 - Fed's Use of a Demand-Driven System
00:40:40 - Voluntary Reserve Target
00:54:31 - Outro

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