Miron: Bernanke Should be Reappointed

Libertarian professor Jeffrey Miron believes we should reappoint Ben Bernanke:

You might be suprised by that answer. To be clear, I think the Fed has erred tremendously during Ben’s first term, both by supporting the bailouts and by expanding the Fed’s actions beyond standard open market operations (e.g., buying up mortgage-backed securities).  In my utopia, the Fed would not exist at all.

But we do not live in that utopia (yet).  If Ben is not confirmed, we will stil have a Fed, and someone will be chairman.

Some of the points Miron cites are:

3. Most distinguished candidates to replace him will be horrified if he is not confirmed.  So, his successor may be far less talented.

5. Stability in policy is important, even if that policy is not perfect.  If Ben is not confirmed, uncertainty about monetary policy increases dramatically.

It’s important to remember that being anti-Fed does not necessarily mean you must be against Bernanke’s appointment. For example, I’d like to get rid of the FDA; however, that does not necessarily mean I must be against the people running the FDA. What would you say in support or against Miron’s opinion on Bernanke?

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