Brad DeLong in Department of "Huh?!" points out some issues with the European Central Banks statements. "He thinks inflation is likely to fall back below 2% in 2011, and yet he is calling for interest rate increases now?"
Senator Richard Shelby (R-AL) doesn't think Peter Diamond should be on the Fed Board of Governors because "In short, Dr. Diamond is an old-fashioned, big government Keynesian." Shelby lists other reasons in his statement, but that seems to be the main point. Diamond is of course a Nobel Prize winning MIT economist.
Even Greg Mankiw supports Diamond. "I am personally saddened by this decision, for Peter is a very smart guy and a highly accomplished economist, as well as a former teacher of mine. There is no doubt in my mind that Peter was fully deserving of the Nobel Prize. But I have to admit that, given Senator Shelby's political preferences regarding economic policy, his reasons for blocking the nomination to the Federal Reserve Board are not wholly unreasonable."
DeLong called this statement Really Bizarre: "I can't think of very many people who would add more to the Fed's discussions of regulatory affairs or monetary policy than Peter Diamond. Put me down as saying that Shelby is being wholly unreasonable--unless, that is, Greg Mankiw is saying that Shelby's political preferences regarding economic policy are for ineffective and counterproductive regulation and for a failure to maintain price stability and full employment?"
No comments:
Post a Comment