Darrell Duffie is a professor of finance at Stanford University, and he joins Macro Musings to discuss the treasury market problems that emerged in March 2020 and what can be done to avoid them in the future. Specifically, Darrell and David lay out the current state of financial markets, the ability of treasury markets, as currently designed, to handle demand shocks, and how central banking reforms can better ensure financial stability in the future.   Register here for the Cato Institute/Mercatus Center Webinar Series - *A Fed for Next Time: Ideas for a Crisis‐​Ready Central Bank*: https://www.cato.org/events/fed-next-time-ideas-crisis-ready-central-bank Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   Darrell’s Twitter: @DuffieDarrell Darrell’s website: https://www.darrellduffie.com/ Darrell’s Stanford profile: https://www.gsb.stanford.edu/faculty-research/faculty/darrell-duffie   Related Links:   Bonus segment with Darrell: https://youtu.be/0Y3MTjgbP74   *Pass-through Efficiency in the Fed’s New Monetary Policy Setting* by Darrell Duffie and Arvind Krishnamurthy https://www.gsb.stanford.edu/faculty-research/publications/passthrough-efficiency-feds-new-monetary-policy-setting   *The Failure Mechanics of Dealer Banks* by Darrell Duffie https://www.aeaweb.org/articles?id=10.1257/jep.24.1.51   *Still the World’s Safe Haven? Redesigning the U.S. Treasury Market after the COVID-19 Crisis* by Darrell Duffie https://www.brookings.edu/research/still-the-worlds-safe-haven/   David’s blog: macromarketmusings.blogspot.com David’s Twitter: @DavidBeckworth