President Barack Obama has shown a determination to redistribute wealth by increasing government spending, despite unsustainable deficits. We shouldn’t be surprised if Janet Yellen, the president’s nominee to be Federal Reserve chairman, shares his objective.
German economists are rebutting accusations from the U.S. Treasury Department and Nobel laureate Paul Krugman that their nation’s current account surplus is too large and poses a threat to global growth.
The U.S. and the U.K. are immune from the kind of debt turmoil that engulfed five euro-area countries because they’re not part of a monetary union and borrow in their own currency, Nobel laureate Paul Krugman said.
Janet Yellen has been closely involved in designing Federal Reserve policy, so don’t expect any radical departures when she takes over as chairman from Ben Bernanke next year. That’s fine: No radical departure is necessary. Bernanke’s Fed has done a good job under difficult circumstances -- made even more difficult by the mess that Congress has made of fiscal policy.