Skip to comments.Yellen’s Path From Liberal Theorist to Fed Voice for Jobs
Posted on 10/09/2013 7:30:44 PM PDT by Tailgunner Joe
Ms. Yellen decided to pursue a doctorate at Yale University after hearing a speech by James Tobin, the economist whom she still regards as her intellectual hero. Mr. Tobin was a staunch defender of the view that government policy could lift an economy from recession. ....
While admirers of capitalism, we also to a certain extent believe it has limitations that require government intervention in markets to make them work, Ms. Yellen said in a 2012 interview with Berkeleys business school magazine. ....
In a related debate in 1995, Ms. Yellen argued that reducing high unemployment should sometimes be the Feds highest priority, even above holding down inflation. The bitter aftertaste of the 1970s, when the Fed let inflation soar as it sought lower unemployment, had rendered such views all but sacrilegious for more than a generation, but Ms. Yellen argued that the Fed had allowed the pendulum to swing too far.
To me, a wise and humane policy is occasionally to let inflation rise even when inflation is running above target, she said. ....
In April 2012, Ms. Yellen told a New York audience that the Fed had not done enough to stimulate the economy in the aftermath of the great recession. ....
Returning to Yale in 1999, Ms. Yellen summarized the lesson she had learned from Professor Tobin and carried with her into public service.
Will capitalist economies operate at full employment in the absence of routine intervention? Certainly not, she said. Do policy makers have the knowledge and ability to improve macroeconomic outcomes rather than make matters worse? Yes.
(Excerpt) Read more at nytimes.com ...
Sounds like another academic.
Well, there you go.
Color me surprised...
In other words, an arrogant airhead.
Ya know. Republicans are starting to feel their oats by standing up to Obama, and with good results. Would it be too much to ask republicans to block this nomination, in favor of a stronger protector of the currency? I know, you don’t have to answer.
Do policy makers have the knowledge and ability to improve macroeconomic outcomes rather than make matters worse? Yes.[groan]
Look what policy makers have done for the Soviet Union, Cuba, North Korea, Venezuela and Cook County Illinois.
How can we be against the experts running things given their record of historical success?
Unemployment is because they never print enough money for the poor, only for the rich.
The “Federal Reserve”. It’s not federal and there are no reserves.
Formed originally to protect a group of insider bankers who worried they might become obsolete.
Bitcoin is an interesting development.
They can't just leave things alone. Have their previous interventions made things better?
The joke is that Yellen's been there while the Fed created bubble after bubble. She's been there as Fed policy abetted Congresses and Presidents blowing the budget and spend like drunken pirates.
It's like giving the keys to the bus to the same driver that sent it over the cliff. It's dumb.
At what point does one admit that the Fed, with Yellen right there, created the very problems we face today. They’ve abetted fiscal promiscuity via their interest rate settings. The economy didn’t just start in 2008. Are they at all culpable and if yes, why should we trust them again?
And during the last five years they could have turned the economy around on a dime with all of their knowledge and ability except what????
Summers bailed for a reason. Ben is going to sit back in retirement and point the finger at his successor for causing the collapse of the financial system.
Could be a lot of money to be made by shorting bond futures over the next few years.
Right. As long as you ignore $1.9 trillion in Treasuries, $1.3 trillion in MBS and $340 billion in gold.
Damn. Those quotes of hers from the article boggle the mind. With her driving the bus, owning lots of tangible assets will be a necessity.
We’re doomed. What else can the prognosis be for a country whose new Central Bank chairman spends her first day in the global spotlight announcing how much she likes inflation?
stalin and kim et al
lived quite well
the over lords in cook county are in good shape too
it is hard to imagine the insanity of the left isn’t designed to produce EXACTLY the results that stalin got.
you haven’t sen anything yet
she is a thousand times worse than the second worse chairman in history
(the clown before volker was worse.)
Hard to believe gold hasn’t spiked over this.