A Social View of the FOMC

While we all patiently await the announcement of ZIRP, check out David Merkel’s "social view" of the FOMC.   

Here’s a quick quote:

"When I look at this data, what jumps out at me is the number of Ph. D.
economists – they are 10 out of the 15 here, then three MAs in Economics and
related fields, one MBA (Fisher) and one JD (Warsh).  (Personally, I would
want to limit the number of Neoclassical economists on the committee to
five, and put in a few Austrian School economists.  Monetary policy is too
important to be left to a bunch of Neoclassical economists.)  Beyond that, among
the economists, there are many of them that have done direct work on the
inter-linkages between monetary policy and financial markets (Bernanke, Kohn, Kroszner, Mishkin, Plosser, Evans, and Lacker). A number of them have written about central banking and financial markets
under conditions of stress.

In addition to David’s overview, be sure to check out his PDF that summarizes the current Federal Open Market
Committee


Members of the Federal Open Market Committee
Click for PDF

Fomc_committee

Good stuff, David!

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What's been said:

Discussions found on the web:
  1. RNL commented on Mar 18

    RE: upcoming FOMC cuts and inflation

    Barry, I’ve been with you all the way so far on inflation. However, Mish believes that we’re at the end of the line with inflation, and we’re tipping into deflation.

    http://globaleconomicanalysis.blogspot.com/2008/03/now-presenting-deflation.html

    Thoughts about this?

    Also, you made the argument in the video that the cuts will do more harm than good. What about Krugman’s argument that it really is helping our exports, and it’s one of our few bright spots? Could killing the dollar (inflation be damned) be necessary?

    http://krugman.blogs.nytimes.com/2008/03/15/good-news-on-the-dollar/

    Also, when’s the next Marketletter? :-)

  2. Mike M commented on Mar 18

    “…and put in a few Austrian School economists.”

    Are you kidding me? Austrian economists believe in truly free markets. Austrian economists call for the abolishment of the Fed. There has never been a true free market Austrian economist involved with the Federal Reserve. And there never will be.

    To be part of the Fed means you are a Keynesian. Period.

  3. wally commented on Mar 18

    “…inter-linkages between monetary policy and financial markets”

    How convenient that they found a problem right where they were looking… like searching under the street light because the light is better there.

  4. mack commented on Mar 18

    David Merkel seems to be a decent man w/ a generally rigorous appetite for data. I appreciate his efforts.

  5. chipach commented on Mar 19

    I started collecting silver eagles when they first came out. The price of silver is rising daily and if you are not collecting now, you will wish you had been. Only 4% of the population actually collect or invest in silver. With the falling dollar, you should be investing in metals. There are numerous reports on why you should be investing in metals and I will be posting a new hub on where to find this information. http://www.silversnowball.com/27

  6. mike commented on Mar 29

    Austrians would be great.

    “So Murray, what do you think we should do?”

    “Abolish ourselves”

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