Senior Fed Economist Slams Economics As “Arrant Nonsense”, Hints It Perpetuates “Criminally Oppressive, Unjust Social Order”
For some “inexplicable” reason central bankers usually wait until after they part ways with their employer before they tell the world all the dirt on their former employer (not that the world seems to care much or, for the most part, understand their criticism with a majority of Americans thinking that the Federal Reserve is a natural park).
One such example is former BOE head Mervyn King, and the man who started QE in the UK, who now is a member of the committee that slams QE. Another example is Andy Haldane who two months ago gave his final speech as the Bank of England’s chief economist. His departing remarks, as TS Lombard put it, were a scathing attack on modern central banking, which he said had created the “most dangerous moment inflation targeting has faced so far” – a “Minsky moment for monetary policy”. Other prominent economists – including Larry Summers, Charles Goodhart and Olivier Blanchard – have expressed similar views, although all after quitting their jobs and becoming freelancers.
In the US, such a level of honesty is more rare because former central bankers usually end up working for hedge funds (the former head of the Fed’s plunge protection team Brian Sack works for DE Shaw, Ben Bernanke works for Citadel, etc) and as such they try not to make any big splash in public and attract attention to their employer, (furthermore why give out free soundbites in public when they can charge $250,000 an hour to do so in private).
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