Friday, June 30, 2006

Bernanke Opts For Mishkin For FOMC -- A Turn For Monetary Policy?

I wasn't planning on writing anything today, but the Mishkin appointment has made me do it. He is obviously academically qualified and of the same inflation targetting mindset, this is beyond debate. What is interesting about the appointment, and it is a good assumption that Bernanke wanted him for the FOMC, is his paper "Can Central Bank Transparency Go Too Far".

Here is Mishkin in his own words in the abstract:

"This paper argues that some suggestions for increased transparency, particularly a central bank announcement of its objective function or projections of the path of the policy interest rate, will complicate the communication process and weaken support for a central bank focus on long-run objectives."

Have a good holiday weekend, more on this next week.

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