Wanted at the Fed: An Inflation Dove

(Whether or not the Senate confirms Ben Bernanke for another term as Fed chairman, this diary raises a critical issue. - promoted by desmoinesdem)

I was just reading that Janet Yellen, recently mentioned as a possible replacement for Fed chair Ben Bernanke, is considered on Wall Street to be an “inflation dove,” which means that she considers maintaining full employment to be -gasp!- “as important” as controlling inflation.

I also wonder about Brad DeLong at Berkeley. He was in the Treasury Department in the Clinton Administration. He's a free trader, which I guess is neither here nor there when it comes to monetary policy (and not necessarily bad in any case), but I like that he's an economic historian.

In any case, we strongly need someone who will put reducing unemployment tops on the list. I know, from personal experience, how unemployment can convulse a family…

 

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The Fed and the Treasury: Heads Should Roll

Krugman's “one cheer for Bernanke” notwithstanding, I think some heads have to roll here. Any favorites to replace him?

I've heard Blinder, Yellin, and Volcker mentioned.

And at Treasury, am I wrong to dream of a team featuring Brooksley Born, formerly of the CFTC, Elizabeth Warren of the TARP oversight office, and maybe Sheila Bair of FDIC? Make Born the Treasury Secretary, Bair the Comptroller of the Currency, and Warren the head of what should be a new Financial Product Safety Commission.

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