Wednesday 9 October 2013

2013-42 Janet Yellen to lead the FED

Janet Yellen is to be nominated as the new FED chief
She is currently the deputy chair of the FED, was the presedent of the San Francisco Fed and a professor at Berkley. Her biggest contribution in economics is the efficiency wage theory, which she developed with her husband, Nobel Prize winner George Akerlof.
The Wall Street Journal analyzed economic forecasts  by FED policymakers over 2009-2012. She came first
If confirmed (very likely) she will be the most powerful woman in economics and finance.

Here is the best summary of how she may be different from her predecessor: comment made by Derek Holt, Dov Zigler, Bank of Nova Scotia (from the Globe and Mail)

“Yellen has been a fairly consistent advocate that the Fed cannot ignore the ‘full employment’ component of its dual mandate. Over the past number of years, Yellen has tended to speak directly and bluntly about the FOMC’s responsibility to pursue an accommodative monetary policy in order to try and encourage full employment in the economy."

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