Economics

Uchvátil Trump Fed?

Nov 3, 2017 Joseph E. Stiglitz

NEW YORK – Jednou z významných pravomocí každého prezidenta USA je jmenovat členy a šéfy mnoha orgánů, které jsou zodpovědné za uskutečňování zákonů a předpisů země a mnohdy řídí ekonomiku. V tomto ohledu není snad žádná instituce důležitější než Federální rezervní systém.

Donald Trump při výkonu této pravomoci porušil dlouhotrvající pravidlo, dodržované už téměř půlstoletí, podle něhož prezident (na nestranickém základě) znovu jmenuje úřadujícího předsedu Fedu, je-li vnímán tak, že odvádí dobrou práci. Zřejmě žádný předseda neodvedl lepší práci, obzvlášť v těžké době, než Janet Yellenová.

Zatímco její dva bezprostřední předchůdci citelně poskvrnili pověst Fedu přimhuřováním očí, když se ve finančním sektoru hromadila obrovská rizika a docházelo k rozsáhlým podvodům, Yellenová ji očistila. V Radě Federálního rezervního systému, typické rozmanitými filozofickými přístupy k ekonomice, svým klidným a vyváženým vedením tříbila široký konsensus a v období, kdy byla fiskální politika zbytečně upjatá, neboť licoměrní republikáni zveličovali nebezpečí schodků, dokázala ekonomiku provést pomalým zotavováním. Povrchnost oddanosti republikánů vůči fiskální poctivosti dnes vychází najevo, poněvadž prosazují obří daňové škrty pro firmy a miliardáře, které v příštích deseti letech rozšíří deficit o jeden a půl bilionu dolarů.

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Joseph E. Stiglitz

Writing for PS since 2001
331 Commentaries

Joseph E. Stiglitz, a Nobel laureate in economics and University Professor at Columbia University, is a former chief economist of the World Bank (1997-2000), chair of the US President’s Council of Economic Advisers, and co-chair of the High-Level Commission on Carbon Prices. He is Co-Chair of the Independent Commission for the Reform of International Corporate Taxation and was lead author of the 1995 IPCC Climate Assessment.

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0 Comments on this paragraph, 10 Comments on this article

Liber León Apr 9, 2018

El presidente NO renueva
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jose sousa Dec 1, 2017

Prof J.Stiglitz is one of a group of the most brilliant economists of our era, including also and namely, P.Krugman, Brad DeLong, L.Summers, or Paul de Grauwe. Unfortunately, politicians tend to prioritize short-term objectives against the recommendations of scientists and/or specialists from the most diverse areas of activity. The last paragraph of this article is paradigmatic.
Yet, I am not completely aligned with Prof.Stiglitz appreciation on the Fed latest policies concerning interest rates. In fact, it is my belief that several mistakes have been simultaneously occurring in recent years involving both governments and central banks:
- by accepting unfair competition from emerging economies which are not obliged to follow the same labor, social or environmental rules that national producers are obliged to. (which is negative for employment, wages, and inflation)
- by underestimating that monetary expansion without a proper fiscal expansion is less effective on the goals for increasing employment, wages, inflation, and GDP.
- by overfocusing on low inflation in prejudice of the above mentioned, keeping low rates for too long, inducing financial bubbles that sooner or later will burst, with the well known terrible consequences.
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Paul Daley Nov 9, 2017

Somehow, but I can't worry too much about the pseudo-independence of a FED that's susceptible to "cognitive capture."

Those to whom the FED is accountable should be explicitly identified, and given powers to act whenever FED actions exceed its mandate or threaten the nation.
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Phil Cartier Nov 6, 2017

Sorry Joe. Obama beat you to it, appointing Janet Yellen to continue keeping Bernanke's lid on interest rates and making it easier for his government to spend trillions on bailouts while crushing small business under new regulations. Effectively postponing any normal recovery until he was out of office.
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William Cash Nov 5, 2017

Trump only appoints people who agree to be loyal to him. Look at the generals whom everyone thought would be the wall. They are his biggest enablers.
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William Cash Nov 5, 2017

Trump only appoints people who agree to be loyal to him. Look at the generals whom everyone thought would be the wall. They are his biggest enablers.
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Douglas Knauer Nov 5, 2017

I hate to burst your bubble, Mr. Stiglitz, but do you think the last 9 years have not given us a politicized Fed already? Mr Trump's choice is solid for all the right reasons and that choice will have to endure Trump's slings and arrows because no one is safe in this administration if you cross him.

Time will tell what kind of mettle Mr Powell is made of, but the situation of politics at the Fed is far from new.
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Chris Coles Nov 4, 2017

What everyone needs to accept, is the recognition that the underlying weak growth in Western economies, (not just the US economy), has been caused by a failure of competition; competition for the employee. With everyone focused upon the economic needs of "government", it is now time to bring into focus the need for the future employer, the creator of a new business, who in turn, is setting out to employ others in their local community.

What we lack and now desperately need to be put into place is an agreed set of rules, mechanisms and at least one new institution, designed to feed free enterprise equity capital into the hands of the future employer. I have called that process Recapitalisation Of The Grass Roots Economy; RecapGRE.

The FED needs to return to the underlying thinking that set the Oklahoma Land Rush into motion. Instead of using parcels of land, they should use a significant portion of the funds they hold. Such a release of funds, directly into new very small start up business creation, entirely led by availability of an employee; where the rules demand; no new employment, no access to the free enterprise equity capital, will drive renewed competition for the employee, within a framework designed to create new prosperity; right down at the grass roots of the economy.

So, why not try some new thinking?
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Carlos Imendia Nov 4, 2017

So, we expect Powell to understand the intricacies of money supply and multiplier effects and being capable in repelling Wall Street's appetites.
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Steve Hurst Nov 3, 2017

Bogeyman story. The new guy isnt an economist Phd, well so what, the FED is chockablock with them
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