Nicholas Lemann profiles the new Fed chair in the July 21 issue of The New Yorker. One of the key themes of the newer article is that Yellen is “the most liberal [Fed chair] since Marriner Eccles,” and an “unrepentant Keynesian.”
The article usefully contrasts Yellen’s policy views with those of orthodox macroeconomics. Yellen identifies as an adherent of the philosophy that government is capable of greatly improving on the outcomes of a modern capitalist system. (For many, this is the essence of what is known as the liberal view in the US political realm. Yellen’s liberalism will matter (1) in financial regulation, and (2) in macro policy, where the Fed is influential.)Multiplier Effect
Another Eccles at the Fed?
Greg Hannsgen
Until Yellen calls for a dramatic expansion of the government role in setting a transformational national economic strategy and leading the way in national capital formation and democratic ownership and control of the next generation of infrastracture assets, she's just another neoliberal wanker in my book.
ReplyDeleteThe political and economic minds of our generation are extremely small. If they were around in 1941, the Nazis would have ended up running the great lakes within 2 years and Silicon valley would be pulling in fortunes writing all their software. There is an utter lack of long-term vision and zeal for justice and democratic progress among the modern crop of "liberals".
Sounds encouraging =)
ReplyDeleteFrom what I've seen of Yellen she is light years away from Eccles.
ReplyDeleteStill an advocate of 'monetary policy uber alles'.
Considering that all these people work in the Marriner Eccles building, its unbelievable that they dont appear to know a goddam thing about what he accomplished. Its insulting to compare Yellen to Eccles....she has always been a "go along to get along" type. Eccles was the exact opposite- a true patriot who pissed a lot of people off to serve his country.
ReplyDeleteYellen as a "go along to get along" type.
ReplyDelete"stooge" is the shortened version.
If nothing else, it's useful to see Marriner Eccles name in print more often.
ReplyDeleteFor that alone, I'd encourage Hannsgen to expand on this topic.
Until Marriner Eccles has more name recognition than Peter Peterson, we're hurting.
He'll be "rediscovered" after the Big One, just like Minsky was in the aftermath the first round.
ReplyDelete