Center for Financial Stability (CFS)

The Center for Financial Stability is an independent, nonpartisan, and nonprofit think tank focused on financial markets for the benefit of investors, officials, and the public. More
The Future of Monetarism after Milton Friedman The Future of Monetarism after Milton Friedman by Michael Bordo, Shadow Open Market Committee member, was published by the Federal Reserve Bank of St Louis. Highlights include: The influence of monetary aggregates on the macro economy via theoretical and policy channels. The importance of the M's (monetary measures) in modern central banking as a cross check in real time.		Shadow Open Market Committee The SOMC is an independent group of some of the world’s leading economists. The SOMC provides external perspectives on policy choices by the Federal Reserve and other leading central banks. More
Conferences on Banking Stress and Monetary Policy CFS Advisory Board Chair Randal Quarles led discussions in Washington, D.C. and New York on reports by CFS senior experts Sheila Bair (chair), Joyce Chang, Charles Goodhart, Lawrence Goodman and Barbara Novick covering the impact of supervisory and regulatory policies, as well as the role of monetary and fiscal policies on bank failures. Please read the reports here: Supervision and Regulation after Silicon Valley Bank The Role of Monetary and Fiscal Policies in Recent Bank Failures		Data and Analytics Click image to enlarge. CFS Advances in Monetary & Financial Measurement (AMFM) - CFS Divisia M4, which is the broadest and most important measure of money, grew by 7.4% in August 2026 on a year-over-year basis versus 7.8% in July. August Data Release Financial Timeline Historical Financial Statistics

Highlights

Is Divisia money another reason the Fed raised rates? - Professor Costas Milas, University of Liverpool, highlights how CFS Divisia M4 may have been one of the reasons why Fed Chair Warsh lifted rates in the Financial Times.

Shadow Open Market Committee Member, Mickey Levy wrote in The Wall Street Journal how Federal Reserve Board Chair “Warsh's New Principles for the Fed” could enhance policy deliberations.

How should central banks assess and communicate risks around money growth? - CFS President Lawrence Goodman discussed monetary measures and policy at the Bank of England. Slides are available here.

SOMC: Approaches for Strengthening the Federal Reserve's Effectiveness: Building on the Legacy of Charles I. Plosser (1948-2025) - Shadow Open Market Committee (SOMC) meeting videos and papers are now available here.

CFS senior fellow Robin Lumsdaine and her colleagues on the European Systemic Risk Board advisory scientific committee published a superb piece, “Artificial intelligence (AI) and systemic risk.”

CFS IN THE NEWS

Recent Events

“Economic Bifurcation and Chaos,” CFS Director William A. Barnett was a keynote speaker at the 12th International conference on Time Series and Forecasting (ITISE 2026).

Private Credit 2026: Navigating Liquidity, Risk and Opportunity - CFS President Lawrence Goodman participated on a panel at the New York Chapter of the Risk Management Association.

SOMC: Approaches for Strengthening the Federal Reserve's Effectiveness: Building on the Legacy of Charles I. Plosser (1948-2025), Washington, D.C.