The Fed: Not Summers

Stiglitz on why Obama should choose Yelln over Summers.

Why Janet Yellen, Not Larry Summers, Should Lead the Fed - NYTimes.com:

".. the Fed is an enormously important institution, but regrettably, its conduct in the years before Ms. Yellen took up her role in Washington — both its failures in dealing with the bubble and certain aspects of its conduct in the immediate aftermath of the crisis (like the lack of transparency) — has undermined confidence in it. It is important that President Obama’s nominee not be — or even be seen to be — acting at the behest of financial markets. That person cannot be someone who can be tainted even by an accusation of conflict of interest, which is inevitable with the “revolving door” that has too often been associated with the regulation of this sector. Nor should it be someone who suffers from “cognitive capture” by Wall Street. At the same time, the person has to have the confidence of the financial markets, and a deep understanding of those markets. Ms. Yellen has managed to do this — an impressive achievement in its own right."

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