Looks like Christina Romer, after her stint in the White House (and of course now back in academia), is angling to be the replacement of easy Ben Greenspan.... err Alan Bernanke. It's too bad Christina, even easier than Ben or Alan Janet Yellen is current VP and ready to continue the American policy of inflate, create bubbles, and propser once Ben hits the road. [Mar 12, 2010: US Dollar Takes a Hit as Janet Yellen Leaked to be Nominee to Replace Donald Kohn as Fed VP] With economic leaders like this running country policy, who needs enemies of the state?
I don't necessarily disagree with her observations of the problems in the country; I just cringe when the only solution we can think of is print and/or massively deficit spend (and preferably both)! Everything is about injecting the patient with steroids rather than addressing root causes.
7 minute video
It's a mistake for the Fed to end QE2 in June as planned, Romer continues. The evidence is it's been very effective. I don't understand why we'd be dialing back that tool. Romer lauds QE for helping to weaken the dollar. A weaker dollar makes U.S. goods more competitive overseas, boosting exports and GDP growth, and ultimately hiring. While that's true, she seems to overlook the impact a weak dollar has on ordinary Americans in terms of falling buying power and punishment for savers and those living on fixed-incomes.