Money 2.0 Stuff: Monetary policy is still hard, man

MakerDAO is the Ethereum-based credit facility underlying the synthetic token, DAI. DAI trades freely on secondary markets but is soft-pegged to one U.S. dollar. Like all good central banks, the governors of MakerDAO periodically adjust interest rates to drive both demand and supply according to DAI’s fidelity to the soft peg at any given time. 

A fair bit has changed since March 2019, but one thing that has remained constant: that "monetary policy is hard, man." It’s worth revisiting a quote from Jeffrey Lacker, the president of the Federal Reserve Bank of Richmond, who once stated: