Skip to main content

Reaction to Dr. Bernanke Nomination to Fed Chairman

I contacted our local economics expert, Dr, Paul Prentice, who is a UCCS Professor, and President of Farm Sector Economics, for a reaction and comments to Dr. Bernanke's nomination.

Dr. Prentice suggested readers check out Dr. Bernanke's website for insight into his qualifications through his c.v. and his publications. (http://www.princeton.edu/~bernanke/)
In my opinion, the most important qualification for Fed Chairman is understanding that the Fed's primary job is long run price-stabilization, i.e. stabilization of the value of the currency, rather than stabilizing the short run business cycle. This means that the Fed should do less fine-tuning of monetary policy in order to try to fine-tune normal economic cycles. The Fed should instead focus on more of a long run "fixed-money-rule" as proposed by Nobel economist Milton Friedman.

As a macroeconomist, Dr. Bernanke appears to be more inclined toward long run price stability, aka "inflation targeting". Not surprisingly, the market reacted favorably today to the announcement, as have I.

Sincerely,

Paul T. Prentice, Ph.D.
President
Farm Sector Economics, Inc.

Tags: Politics, News, Economy, Economics, Policy,

Comments

Post a Comment

Popular posts from this blog

Al Cardenas Comments on Univision Democrat Forum

Al Cardenas is Chairman of Romney for President's Hispanic Steering Committee. I got the following email from the campaign. Boston, MA – Al Cardenas, the Chairman of Romney for President's National Hispanic Steering Committee, issued the following statement regarding tonight's Democrat presidential forum on Univision: "Tonight's Univision forum demonstrated once again the consequences that a President Clinton, President Obama or President Edwards would have on the Hispanic community.  Whether it's tax increases for families and the two million Hispanic business owners, socialist-style health care, coddling dictators, opposing free trade with our allies or putting family values last, the Democrat presidential candidates made clear how out of sync their policies are with the best interests of the Hispanic community. Mitt Romney has put in the effort to reach out to this vital bloc, and, after watching tonight's debate...
Post a Comment
Read more

Harry Potter Mania -- Discussion

There is a great discussion going on at WorldMagBlog on the whole Harry Potter mania. Nothing to do with Latinos, I suppose, but I thought I would ad my two cents. A reader commented: I think its interesting how much people want to be in a group that is all connected by some common thread. It says a lot about our desire for homogeny, not always along racial, sexual or religious lines, but also simply based on what we do in our spare time. The interesting thing about Harry Potter fans vs. Star Trek fans is that a vast majority of them are kids who have grown up with the books, or the parents of said kids. I wonder if what sort of effects this will have on them as they get older (and whether or not they will remain HP fans). We live in an obsessive culture. Posted by David B. at July 22, 2005 07:54 AM This is an interesting phenomenon. I would think it is indicative of our society, more than anything else. I tend to agree with the idea that it shows a desire or need for communi...
Post a Comment
Read more

Communism: Good Money for the "El Viejo"

I guess Fidel Castro is doing ok . Forbes lists Castro as one of the richest in the world, right up there with the Queen of England. I bet he didn't like the attention. It was hard to figure it out, but it seems they managed to throw some numbers together. In the past, we have relied on a percentage of Cuba's gross domestic product to estimate Fidel Castro's fortune. This year we have used more traditional valuation methods, comparing state-owned assets Castro is assumed to control with comparable publicly traded companies. A reasonable discount was then applied to compensate for the obvious disclosure issues.
1 comment
Read more