Who Should be on the FOMC
Submitted by A Dash of Insight
David Merkel has a very interesting article, A Social View of the FOMC, where he analyzes the background and credentials of the voting members, and also the non-voting bank Presidents. Readers should download his handy PDF summary and also read his comments on each member.
He is highlighting an important question. Many have criticized the Fed for being too “academic.” Some seem to believe that a committee of trader-types would be better, or that corporate executives would add value. David suggests that more economists from the Austrian School would be a plus. We wonder how that would fit with the many calls for clarity of purpose, like that of Paul Kedrosky.
Some months ago when the FOMC membership was criticized as a bunch of academics we did our own check of the backgrounds. We were looking for a very specific credential which gets no respect in the financial community. Even in the astute Merkel analysis, this credential is not mentioned; in fact, it is given short shrift.
Any guesses as to what this might be?
More broadly, what should a new President be looking for in appointing Fed Governors and considering the reappointment of Bernanke?
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