Welcome Stanley Fischer, PhD to theFed..

[bimetalaupt]

Welcome...the the Federal reserve as Vice Chairman   ..You are my choice as Chairman..we need a HAWK!@!!!! So Much bonds so little dreams!!!Too much leverage in Housing..now too much cash in reserves..Too little loans..Too small return for banks and Life insurance!!

Bi

[bimetalaupt]

Why not Stan

Four reasons Stan Fischer makes sense for the Fed

Posted by Neil Irwin on December 11, 2013 at 3:45 pm

Note: This piece is adapted from an August post arguing that Stan Fischer was the most qualified nominee to become chairman of the Federal Reserve.

Multiple news outlets are reporting that the White House is close to nominating Stanley Fischer to be the next vice-chair of the Federal Reserve. He would replace the soon-to-be-promoted Janet Yellen in the No. 2 slot at the central bank.

Wonkblog readers will recall that we've been flogging the idea of bringing Fischer to the Fed for some time. Dylan Matthews wrote a long and definitive profile of the former governor of the Bank of Israel and deputy managing director of the International Monetary Fund in February. So what might the White House (and Yellen, who would be consulted before such an appointment) see in Fischer? Here's what you need to know.

The short version: Whether you're looking for academic brilliance, crisis management or central banking experience, Fischer's record is sterling. He is deeply respected, even beloved, in the community of central bankers, an intellectual leader among the group of men and women who guide the world economy. In fact, he was a mentor to many of them. As it happens, he was thesis adviser to both current Fed chair Ben Bernanke and European Central Bank President Mario Draghi.

At the Kansas City Fed's annual economic symposium in Jackson Hole, Wyo., this past August, where global central bankers gather each summer, Terrence Checki, the influential international chief for the New York Fed, at one point took a thoughtful question from Fischer. “I’ll just say that I would never presume to answer a question that Stan didn’t know the answer to,” Checki said.

So here's what Fischer's colleagues in the world of economics and central banking see as his appeal.

Brilliance, without the rough edges. Fischer was among the premier macroeconomists of his generation at MIT, before pivoting to a career in public service. He has a lot in common, in that respect, with Larry Summers — also an academic who seemed on track to win a Nobel Prize one day who decided to shift to policymaking rather than research. But while Fischer and Summers share a brilliant mind for economics, their personal styles are very different.

Where Summers is seen, even by some of his supporters, as arrogant and bull-headed, Fischer is a legendary nice guy, deploying a wry smile and persuasive arguments to get his way. That could come in handy if he was in charge of the Fed, where decisions are made by committee
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A crisis-management veteran. Fischer has faced trial by fire, most dramatically as the deputy managing director at the IMF from 1994 to 2001. He was on the front lines dealing with of a series of emerging market crises, including in Mexico, East Asia and Russia.

In other words, if there were to be a crisis in one or more of the emerging powers like China, India or Brazil, it would be the sort of thing that Fischer has spent his career preparing for. That is doubly imp

www.washingtonpost.com/blogs/wonkblog/wp/2013/12/11/four-reasons-stan-fischer-makes-sense-for-the-fed/

[sunrnr]

I understand many think Fisher should be Chairman, as you so eloquently stated and Yellen will simply be more of the same of what we've had the past couple of years.

[Aman A.K.A. Ahamburger]

Dec 11, 2013 23:11:00 GMT -5 bimetalaupt said:

Welcome...the the Federal reserve as Vice Chairman   ..You are my choice as Chairman..we need a HAWK!@!!!! So Much bonds so little dreams!!!Too much leverage in Housing..now too much cash in reserves..Too little loans..Too small return for banks and Life insurance!!

Bi

I agree, welcome to the fold SF!  I also agree that the foot could be taken off the accelerator, however, too much money in the system?  Like we talked about a couple years back B.  The reserves go into paying toxic assets, which go back into the banking system, which will eventually create momentum in the housing market, which will make the assets nontoxic and resellable.  Check it out... 

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