Krugman - Good news: Janet Yellen will be the Fed’s new #2.

[ProSense]

Yellen To DC

Good news: Janet Yellen will be the Fed’s new #2. She’s open-minded, a good counterweight to the inflation hawks who think that any day now we’ll be partying like it’s 1979. She’s also a distinguished scholar, with much of her work in New Keynesian macro.

She’ll provide exactly the kind of intellectual flexibility the Fed needs.

From Calculated Risk:

I suggested Dr. Yellen as a possible candidate for Fed Chairman last year, so obviously I think this is a good choice. She was way ahead of most other Fed members in recognizing the housing bubble, and she is apparently well respected by other Fed members. She is also very focused on unemployment (something we need right now).

Yellen served on the Federal Open Market Committee (FOMC) last year - and this would put her back on the Committee (the Fed Presidents rotate each year).

[NJmaverick]

1. I recced this good news, but it only came back to zero

it seems there are DUers that don't like good news.

[n2doc]

2. And now it is +8

Every group has its idiots....

[Cha]

8. One wonders how this could possibly be

bad news on DU. I would think everyone would support Janet Yellen as FED # 2.:)

[FrenchieCat]

3. Only 2 comments?

Oh yeah.....it's good news, nothing to rail about!

[impik]

4. Yea, it's not like this a "Democratic" site or anything...

[dionysus]

5. the diaper brigade won't comment unless they can find something to rail about...

[AllentownJake]

15. Do you know anything about this women or her economic

beliefs?

Honestly, most of DU can't figure out a BLS labor statistic report, let alone understand monetary policy theory.

:shrug:

[AllentownJake]

14. Explain to me neo-Keynsian macro- economic theory

I highly doubt, you could intellectually discuss why this is good or bad news.

[pampango]

16. "I highly doubt, you could intellectually discuss why this is good or bad news." - Would that make

two of us?

If you disagree with Krugman (someone whom many here respect) that's fine, but present your case rather than demanding that others present theirs. Show us your superior ability to intellectually discuss this theory. Giving us a 2-line post requesting an explanation of "neo-Keynsian macro- economic theory" rather than posting your own "neo-Keynsian macro- economic theory"-based explanation of why Krugman is wrong seems like a diversionary tactic rather than someone with a strong case to make.

(It's been a few years since I got my economics degree , but I think I can handle your "neo-Keynsian macro- economic theory"-based explanation of where Krugman went wrong, if you care to present it.)

[AllentownJake]

17. My point on this particular

We are soooo oppressed in this thread, is the people complaining others fail to see the "good news" don't understand what this means themselves. There is one person down thread that was taught by her in this thread who can vouch for her character.

I like Paul, but his ideas right now that deficits don't really matter is being hit with the reality, that actually yes they do. If he needs evidence for that idea, I'd like to send him on a flight to the Eurozone and talk to their economist right now.

There are two parts of classical Keynsian theory, the first part the politicians understand very well. That is you spend like mad to boost demand in bad times. The other part, is you spend less in good times. The politicians have trouble with that concept.

The new Keynsians believe in using monetary policy as a tool more strongly in this regard. Appointing a person to the fed implies a more activist Fed in issues other than inflation.

Right now, at our current debt load, and increase in inflation will increase our interest payments on our debt. Whether or not the increase in money in the system that is created by this, offsets that in tax collections, all depends on who gets the increased supply of money.

[Beetwasher]

6. Corporate Whor...Oh, Wait....

:evilgrin:

[Kdillard]

7. I am glad to read Krugman likes her and her qualification seem to be

Exactly what is needed. It was kind of disappointing to read some of comments on yahoo under the announcement and they weren't supportive.

[Cha]

9. Were they just typical gop comments?

Ignorant and full of venom?

[Kdillard]

13. Yep. However there were a few reasonable comments which were of course

Attacked.

[Jeff In Milwaukee]

10. I don't know a thing about her....

I used to collect Keynesian Economist Trading Cards, but I quit a few years back.

If Krugman says this is good news, that's good enough for me.

[depakid]

11. Nice to see a few of those who actually got it right (mostly right) to be in positions to be heard

[PufPuf23]

12. Janet Yellen is a nice person as well as intelligent

I took macroeconomics from her about 25 years ago at Haas B-School (Cal).