Monday, October 24, 2005

Bush's New Fed Chairman: Ben Bernanke

Just heard about this...I'll be looking more into this guy over the next few days, but here's a summary on him, from the BBC:

The current front runner to succeed Mr Greenspan is Ben Bernanke, a Princeton economist who was appointed chairman of the council of economic advisors in June, and is therefore the government's chief economic advisor.

Mr Bernanke spent most of his career as an academic economist at Princeton University before becoming a member of the Fed's board of governors in 2002.

He is a leading advocate of "inflation targeting", the idea that central banks should set a target for inflation - in the UK it is 2% - and stick to it.

This approach was opposed by Mr Greenspan, who believed central banks needed to keep the markets guessing on how tough they would be on inflation.

Mr Bernanke's approach is widely adopted in Europe, by both the Bank of England and the European Central Bank, and supporters say it has helped to lower expectations of inflation among the public.

His appointment would be widely welcomed by financial markets - who have become familiar with his approach - but might raise hackles among Republican loyalists who don't see him as a team player.

Mr Bernanke, like Mr Greenspan, believes that it is difficult for central banks to intervene to prevent "asset bubbles" like house price booms from taking place.

Posted by crimnos @ 12:10 PM

Read or Post a Comment

From what I understand so far, I am cautiously optimistic about him. But still, like you I am definitely going to spend time looking at his record more carefully.

Thanks for the article. :)

Posted by Blogger alice_pants @ 1:32 PM #

Yeah, I hear you. I'm always cautious about Bush's appointments; I've just been burnt too many times. That said, so far, I don't mind this guy.

Hey, I live to serve. ;)

Posted by Blogger crimnos @ 2:08 PM #

Yeah, I think he is well qualified. I'm surprised Bush picked him lol.

Posted by Blogger james @ 4:05 PM #
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