President Barack Obama plans to nominate Janet Yellen as the next chairman of the Federal Reserve Board. In doing so, he will promote the pre-eminent policy economist of her generation to the role of the most powerful central banker in the world.
Federal Reserve Chairman Ben Bernanke is trying out a new communication strategy that has the potential to dramatically change the outlook for the economy. The idea: By telling people more about its longer-term plans, the Fed can stimulate the economy even when interest rates are as low as they can go.
President Barack Obama recently said that choosing the next chairman of the Federal Reserve is “definitely one of the most important economic decisions that I’ll make in the remainder of my presidency.” The financial media appear to agree, devoting hundreds of column inches to speculation. Senators, overseas pundits and even Bette Midler have chimed in.
The discovery of a spreadsheet error in an influential study by Harvard University economists Carmen Reinhart and Kenneth Rogoff inevitably raises a troubling question: To what extent can we trust what any researcher claims to be true?
Justin Wolfers, University of Michigan professor of economics and public policy and Bloomberg View columnist, discusses his op-ed "Refereeing the Reinhart-Rogoff Debt Debate" which looks at the "academic firestorm" sparked by the discovery of an error in a research paper by Harvard University economists Carmen Reinhart and Ken Rogoff. Wolfers speaks with Bloomberg's Kathleen Hays and Vonnie Quinn on Bloomberg Radio's "The Hays Advantage."