The August issue of Econ Journal Watch is available. Be sure to read Larry White’s contribution, “The Federal Reserve’s Systems Influence on Research in Monetary Economics.” The main takeaway:
These incentives and filtering mechanisms may produce a result as if the Federal Reserve were deliberately subsidizing research that takes the institutional status quo for granted. This should not be surprising, nor is it scandalous. We naturally expect the research that any organization sponsors to tend to promote rather than to undermine that organization’s interests.