| This is my second column discussing Federal Reserve (Fed) regulation in the context of the question of who President Obama should appoint to be Ben Bernanke's successor. This column focuses on the sudden discovery by economists (and, purportedly, Obama) that the Fed Chair's most important function is to regulate. (If that sounds like common sense to you, (1) you are not an orthodox economist and (2) you do not understand the Fed's culture.) This column begins the process of explaining why most of the economists and finance scholars (Robert Prasch is the exception) writing to urge that the new Fed Chair be chosen based on their regulatory skills demonstrate that they lack any understanding of the fundamentals of financial crises and supervision (and aiding prosecutions). This column begins my response to Amar Bhide's op ed entitled "Wanted: A Boring Leader for the Fed." |
Read the rest of the story HERE:
At neweconomicperspectives.org
At neweconomicperspectives.org
