Ben Bernanke
Ben Bernanke is a Princeton professor of economics who moved to be the vice-chair (or a Fed governor, I can't remember) a few years ago, but recently moved to the White House to head the council of economic advisors. He is not a "Bush insider." He is basically an academic, research oriented macroeconomist who also, obviously, has an interest in affecting policy. As of last year, he was still writing academic papers.
He is most famous for work he did regarding the great depression. Milton Friedman's hypothesis (along with Anna Schwartz) was the great depression was essentially caused by an inept Federal Reserve which failed to keep the money supply from falling. Bernanke's hypothesis was that it was the collapse of the banking system itself, not the coincident fall of the money supply, which caused the depression.
He is most famous for work he did regarding the great depression. Milton Friedman's hypothesis (along with Anna Schwartz) was the great depression was essentially caused by an inept Federal Reserve which failed to keep the money supply from falling. Bernanke's hypothesis was that it was the collapse of the banking system itself, not the coincident fall of the money supply, which caused the depression.
posted by Harsh Pencil | 10/24/2005 11:17:00 AM
So was he on your list as possible replacements?
So, Mr. Pencil, I was interested in your personal view as to the wisdom of Bush's choice. Is that something that you care to provide? I will most certainly understand if you decline, but I think your opinion on this matter should weigh heavily among JAS Blog readers.
The Dow (a version of Tradesports) is up 120 pts today. Does this mean Bernanke is good news? Of course, good news for stocks could be bad news for other investments . . . Cessation of the incessant interest rate hikes would be good.
1) Bernanke was on everyone's list. He had been the favorite of tradesports for a long time.
2) I believe this is a good choice. Mr. Bernanke has been a public advocate of "inflation targeting." The idea being that the Fed formally state that it's goal is for, say, 2% inflation each year, and take its actions toward that goal, and be judged by how well it is reaching that goal. This is important because it helps change the public's expectations of what the Fed can and cannot do. Currently, everyone seems to believe the Fed runs the economy. It doesn't.
Yeah, but he has Harvard and MIT degrees. Isn't that a touch elitist?
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