Bryan Caplan  

Bernanke's Nomination

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Kurzweil and War... Bernanke's Nomination Ditto...

My teacher Ben Bernanke has been nominated as Greenspan's replacement. While some libertarians think he's the Antichrist, in reality he's about the best that libertarians could reasonably hope for. As I wrote a few months back:

I was a student of Ben Bernanke at Princeton, and he was by far the best teacher and most impressive mind I encountered there. He is not a dinosaur Keynesian left over from the 60's, or an idiot savant math whiz. Bernanke is a macro theorist who knows an enormous amount of economic history, and an empirical economist interested in wise policy...

[Bernanke] has a firm grip on the ephemeral benefits and long-run dangers of inflation. In fact, he has long been sympathetic to inflation targeting. The idea is simple: Have central banks aim for a low, constant inflation rate, rather than pursuing a laundry list of amorphous goals. It's not free banking, which I'd prefer, but Bernanke's inflation targeting would have precluded most of the bad things central banks have done this century.

...Bernanke is part of the wave of modern macroeconomists who finally noticed what Rothbard pointed out to his uncomprehending colleagues forty years ago: Wage floors make unemployment worse, especially in the face of a monetary contraction...

Bernanke is admittedly a mainstream economist - and I'm not. I'm sure we'd disagree on a great many issues. But at the same time, he is living proof that the mainstream of economics has vastly improved since the dark days of the 60's. Bush's Number One economic mistake is not appointing Bernanke to head the CEA. In fact, Bush's Number One economic mistake is a lot more likely to be habitually ignoring the advice of the excellent economist he appointed.


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The author at The Glittering Eye in a related article titled Bernanke named as new Fed chairman writes:
    Contrary to widespread conjecture President Bush did not appoint his accountant to be the new Chairman of the Federal Reserve. He appointed Ben Bernanke: WASHINGTON (AP) - President Bush on Monday selected Ben Bernanke, chairman of the president... [Tracked on October 24, 2005 1:39 PM]
The author at The Club for Growth Blog in a related article titled Tuesday's Daily News writes:
    Bernanke Bullets - Larry Kudlow, Money Politics The Bernanke Standard - Wall Street Journal Editorial The Fed Announcement - Washington Times Editorial The Bernanke Fed - IBD Editorial The Greenspan Legacy - George Will, Townhall.com Bernanke’s N... [Tracked on October 25, 2005 7:44 AM]
The author at The Club for Growth Blog in a related article titled Ben Bernanke Blog Roundup writes:
    There’s no short supply of opinions on Ben Bernanke, the White House’s nominee to replace Alan Greenspan at the Fed. Below are some blogs talking about it: Larry Kudlow’s Money Politics (here as well) Cafe Hayek Marginal Revolution (h... [Tracked on October 25, 2005 1:56 PM]
The author at www.productivityshock.com in a related article titled Dr. Caplan's thoughts writes:
    link to Dr. Caplan's blog. [Tracked on October 31, 2005 1:19 PM]
COMMENTS (1 to date)
spencer writes:

Someone who thinks an expansionary monetray policy is a good idea when the economy is suffering deflation can not be all bad.

His studies of the great depression of the 1930s are outstanding.

After watching politicians of both parties trying to get Greenspan to make statement supporting their economic biases it will be interesting to see how he deals with Congressional testimony.

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