The paper proposes a regime in which the Treasury and the Fed would cooperate around debt management at all times and would fully collaborate in the case in which the monetary policy rate is pinned at the zero lower bound.
As a policymaker, I bring a degree of scepticism to a proposal to make major changes to institutional arrangements that seem to me to have served the public well. I will mention three areas where I have significant concerns. First, the literature on financial stability and monetary policy is still in its infancy.