Here are some links regarding Janet Yellen’s recent appointment as the vice-chairman of the FOMC:
She’s open-minded, a good counterweight to the inflation hawks who think that any day now we’ll be partying like it’s 1979. She’ll provide exactly the kind of intellectual flexibility the Fed needs.
- Scott Sumner:
In another post (I can’t find) I argued that her failure to understand that monetary stimulus was still possible at zero rates should be an automatic dis-qualifier for the Board of Governors, roughly equivalent to a Supreme Court nominee who opposed Brown vs. Board of Education…Some will say “but at least she’s a dove.” It’s a given that Obama was going to appoint non-hawks, what we needed was someone who also understood that the Fed was capable of actually doing something. Rumors are that only one of the three appointees will be an expert on monetary policy. Let’s hope this isn’t the one.
Pro, but ultimately ambivalent-
- Brad Delong:
A very good person for the job. Not, however, a good move as far as strengthening the FOMC is concerned…
- Tyler Cowen:
I am an inflation dove who doesn’t trust any of the other inflation doves; I would be happier if that were true for all of us doves.
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Update: The most disturbing thing I’ve read regarding Janet Yellen’s appointment:
Yes, Janet is a dove today. But this is so principally because she passionately believes in the dual mandate (price stability and full employment).
That is unforgivable. If true, Yellen deserves no place on the FOMC, nor does anyone else who “passionately believes” such garbage.