Those are two characteristics of gold … and of Judy Shelton’s economics. From Deutsche Bank today (Luzzetti & Hooper):
[Judy Shelton’s] policy leanings have appeared fluid in recent years. During the Obama
Administration, Shelton was critical of the Fed’s expansionary monetary policy. In
a Wall Street Journal op-ed, she argued that the Fed’s efforts to raise inflation to 2%
were misguided…. In making her arguments, Shelton admonished then Fed
Chair Yellen to heed a key lesson from Arthur Burns’s tenure as chair. She said that
tenure was “tarnished by the perception—borne out by the Nixon tapes—that he
[Burns] succumbed to presidential pressure to conduct expansionary monetary
policy to spike economic growth in the run-up to the 1972 election.”More recently, Shelton has changed her tune significantly, arguing that the Fed
should cut rates further to allow the economy to grow faster in response to “reduced
taxes, less regulation, and dynamic energy and trade reforms”. She has also argued
against the Fed’s current operating framework with abundant reserves…
As I’ve documented in previous posts (consolidated here, and shown below in Appendix), she also has an incoherent view on (1) currency manipulations, and a (2) paranoic view on government statistics. And this is the person we want to be a Fed governor?
Appendix
Documentation:
What Does Judy Shelton Believe GDP Growth and Inflation Are in 2019?
Judy Shelton Confuses Me: On Interest Rates, Currency Manipulation
“White House Considers Economist Judy Shelton for Fed Board”
This graphic summarizes my feelings:
I’m so old I can remember when Nobelist Peter Diamond was rejected by Republicans as unqualified to serve on the Fed board — once, twice, three times.
A Confederacy of Dunces.
@ Joseph
A meaningful and worthwhile point to make, and one that can’t be driven into the ground enough. I almost feel like we as an entire nation owe Peter Diamond an apology. He had more people empathizing with him on the denial than he imagines to himself I think.
Janet Yellen was considered too short to head the FED by Trump. Of course she is 3 inches taller than Milton Friedman.
Wingnut welfare – it’s not just think tanks any more.