From WSJ:
Trump said he might appoint Stephen Miran, a close economic adviser, to replace Cook. Earlier this month, the president nominated Miran to fill a different seat on the Fed’s board. But the term for that seat expires in January. Cook’s term is set to expire in 2038. “We might switch him to the other—it’s a longer term,” Trump said.
Among the other potential candidates Trump has discussed, according to some of the people: former World Bank Group President David Malpass, a close ally of the president who has criticized the Federal Reserve for not lowering interest rates. Malpass could be chosen to fill the other open Fed board seat if Miran is nominated to replace Cook.
Reminder, peer reviewed journal articles (google citations)
Miran: 1 (269). On monetary policy: 0
Malpass: 4 (15). On monetary policy (all in Cato Journal): 4
I have a question from down under where unlike the USA we are not a failed state!!
Why is dirigisiteism so popular there? It is a bit like old fashioned peronists are in charge. The government is even taking stakes in public companies. you are sacking the stats head ( see what happened when Argentina tried to manipulate CPI stats). you do not want an independent central bank which clearly has inflationary implications.
Are there any conservatives in the republican party these days
Malpass has no real claim to being a good economist. He was, after all, the chief economist at Bear Stearns when it collapsed, and had written this in the WSJ under the title “Don’t Panic About the Credit Market”:
“Equity markets have recently lost over $2 trillion in the U.S. and even more globally — many times the likely amount of mortgage and corporate debt losses in the foreseeable future.”
https://www.wsj.com/articles/SB118645120890190059
That’s from August 2007, when the writing was already on the wall, as well as the floor, the ceiling, the windows and out on the front stoop.
You can see how bad advice from Malpass might have put “the Bear” at risk.
Malpass has oodles of experience as a government and international-organization bureaucrat. That’s not a good thing if it makes him better at doing bad things; the story of the felon-in-chief’s second term is largely one of being better at doing bad things. However, Malpass could simply settle into a Fed job and do what he’s paid to do. Crazier things have happened.
Anyone have an unbiased read on whether Malpass actually did any good at the World Bank?