In my nerdy student-of-Economics way, I’m very excited about today’s appointment of Ben Bernanke, Ph.D., as Fed Chairman Alan Greenspan’s replacement. Beyond his impressive C.V., Bernanke has a solid understanding of the pressures facing U.S. monetary policy, such as the need to be more transparent about setting inflation targets, and the balance between solid GDP growth and tight interest rate policies.
“Economics is a very difficult subject,” Bernanke once said. “I’ve compared it to trying to learn how to repair a car when the engine is running.” He is not alone in that school of thought, as I have had several Economics professors make similar statements to me. As our danger factors like the current account deficit and our core CPI and PPI figures continue to grow disparate of each other, and external pressures like oil prices and off-shore labor movements weigh on our ability to grow nominally as an economy, the need for someone who can add more clarity to our monetary policy is abundantly evident. I really hope Congress approves the appointment.
How…courageous.
P.S. Off-shore labor movement (in the sectors experiencing the most movement) is not a economic/monetary problem, it’s primarily a political problem. Come on, dude. (Except maybe Bobby Valentine.)