Krugman: The Bernanke Conundrum

[ProSense]

The Bernanke Conundrum

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Where am I? Right now, I’m agonizing — which isn’t a place I ever expected to be, and not just because Bernanke hired me at Princeton.

The pro case is obvious: Ben Bernanke is a great economist, whose work on monetary economics has been a crucial guide to action in this crisis, and he applied his academic insights forcefully in 2008 and early 2009, helping pull the world back from the brink.

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As I see it, the two things that worry me about Bernanke stem from the same cause: to a greater degree than I had hoped, he has been assimilated by the banking Borg. In 2005, respectable central bankers dismissed worries about a housing bubble, ignoring the evidence; in the winter of 2009-2010, respectable central bankers are worried about nonexistent inflation rather than actually existing unemployment. And Bernanke, alas, has become too much of a respectable central banker.

That said, however, what is the alternative? Calculated Risk says we can do better. But can we, really?

It’s not that hard to think of people who have the intellectual chops for the job of Fed chair but aren’t fully part of the Borg. But it’s very hard to think of people with those qualities who have any chance of actually being confirmed, or of carrying the FOMC with them even if named as chairman (which is one reason why this suggestion is crazy). Does it make sense to deny Bernanke reappointment simply in order to appoint someone who would follow the same policies?

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[rpannier]

1. Good Article

Thanks for sharing

I don't think he should be renominated.
I think Krugman should be nominated - the Crazy Suggestion

[FrenchieCat]

2. Do you have any alternatives apart from Krugman......?

My understanding is that not only is this not a job he wants,
but also that confirmation would be near impossible.

[rpannier]

3. It's a fair question

Dr. Aguibu Y Yansane. I'm not sure whether he could hold the job. He is a professor of International Studies with expertise in Economics. He was born in Nigeria. Undergrad the University of Paris. Graduate work at Stanford University. He is a little older than 60, which may affect whether he would take a position like that. He is an academic -- Berkeley and SFSU. So his confirmation hearings might be tenuous.

Dr Susan Moeller. She is a professor at Eastern Michigan. She has corporate experience and is knowledgeable in corporate bankruptcy and international finance. She is on the finance committee of Habitat for Humanity.

I'll admit that I don't hang-out with a lot of economists. These are two I am somewhat familiar with. I will also point out, that neither individual is a leftist -- in the mold of Krugman or what many in DU would like.

[johan helge]

4. Krugman's too controversial and too important for this job

What's needed is someone who agrees with Krugman, without being so controversial!

[applegrove]

5. Too bad we don't have time to clone Krugman.