Brace yourselves, the “Great Recession” will deepen! (If MR gets elected)

Glenn Hubbard says:

“You have to give Ben Bernanke and the Fed high marks for much of their actions,” Columbia economist R. Glenn Hubbard told Reuters TV on Tuesday, referring to the central bank’s actions during the 2008 financial crisis. Asked whether Mr. Romney would consider appointing Mr. Bernanke to a third four-year term, Mr. Hubbard replied, “I would certainly recommend that Chairman Bernanke get every consideration.”

Reporters immediately latched onto Mr. Hubbard’s comments as a sign of internal campaign disagreement, given that Mr. Romney has publicly dismissed the idea of re-appointing the Fed chairman. The better explanation is that Mr. Hubbard, the former chairman of the White House Council of Economic Advisers under George W. Bush, covets the Fed job for himself. What was he supposed to tell his questioner, “Fire Ben and hire me”?

Mr. Romney set the record straight Thursday, telling Fox Business News that he wants a “new person” to fill the Fed chairmanship who is focused on “monetary stability that leads to a strong dollar.” That’s solid advice for whomever takes the job next.

That´s quite the opposite of the monetary stability we want.

5 thoughts on “Brace yourselves, the “Great Recession” will deepen! (If MR gets elected)

  1. The glimmer of hope is that politicians have to play to the voters: they have to say what sounds good to people who know little and, really, care little about the issues. Politicians’ electioneering statements give little indication what policies they will attempt to enact once elected.

    A glimmer of hope is better than no hope!

  2. Yeah! So good that Scott Sumner signed on that economistsforromney list. If the most persistent and consistent voice for monetary policy approves of Romney’s economic policy, that can’t possibly count as… uhm… an… uhm… approval… of Romney’s economic policy, or can it?

    So that’s exactly the kind of monetary policy you want, as far as public peception goes. One of your fellows (and I don’t mean that in a negative sense) just signed on it, just if you were not sure – along with basically everything that Chicago has to offer.

    Way to go…

  3. Excellent blogging. Really, Marcus Nunes is perhaps the very top economics blogger going today.

    BTW, Romney has posted a five-page economic plan, that does not even mention monetary policy.

    http://www.docstoc.com/docs/125714335/Romney-Tax-Reform-White-Paper

    Despite the title of the above document, it is his whole plan, not just tax reform. It is partly authored by John Taylor.

    John Taylor is big in the Romney Camp, and Taylor liked Hertzel’s book (an MM book).

    There is a modest chance that Romney-Taylor would embrace a ruled-based but more aggressive monetary policy. Indeed, I suspect Taylor and others are only against MM for the duration (the duration being Obama).

    Taylor, a GOP partisan to the max, would do anything to obtain prosperity in Romney’s first term. He knows monetary expansionism would work for at least three or four years.

    All that said, I cannot find much likable in the GOP, and I am not sure who or what to vote for.

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