Working Papers

John Edwards Tipped for the RBA Board

John Edwards has been tipped as an appointment to the RBA Board. John’s Lowy Institute monograph Quiet Boom gives a good insight into the thinking he would bring to monetary policy decision-making. He is critical of the conduct of monetary policy in the late 1980s and early 1990s and directly challenges former RBA Governor Ian Macfarlane’s attempts to re-write the history of this episode. I review Edwards’ and Macfarlane’s interpretations of this episode in this essay.

As I have suggested previously, if the government is not going to re-appoint McKibbin, it could at least give thought to appointing an overseas economist to the Board. Here is an interview with Adam Posen, a US economist appointed to the Bank of England’s Monetary Policy Committee. He takes his job very seriously:

“If I have made the wrong call, not only will I switch my vote, I would not pursue a second term. They should have somebody who gets it right and not me. I am accountable for my performance.”

Meanwhile, Peter Diamond’s nomination to the Fed is being held up by Senate Republicans, revenge for the Democrats blocking Bush nominee Randall Kroszner. As Hassett notes:

This is what we have come to: In the minds of our politicians, partisan manoeuvring and score-settling far outweigh the desire to populate government with skilled individuals.

posted on 28 March 2011 by skirchner in Economics, Monetary Policy

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