1 rich Libsyn https://www.libsyn.com 90 600 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. Watch&amp;nbsp;the full length video&amp;nbsp;on our new YouTube Channel! Check out the&amp;nbsp;transcript&amp;nbsp;for this week’s episode, now with links. Recorded on July 20th, 2026 Subscribe to David's Substack:&amp;nbsp;Macroeconomic Policy Nexus Follow David Beckworth on X:&amp;nbsp;@DavidBeckworth Follow the show on X:&amp;nbsp;@Macro_Musings Check out our Macro Musings&amp;nbsp;merch! 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 Macro Musings with David Beckworth http://macromarketmusings.blogspot.com/ <iframe title="Libsyn Player" style="border: none" src="//html5-player.libsyn.com/embed/episode/id/42428730/height/90/theme/custom/thumbnail/yes/direction/forward/render-playlist/no/custom-color/88AA3C/" height="90" width="600" scrolling="no" allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen></iframe> https://assets.libsyn.com/secure/content/205068635