Academics and CEOs dominate Fed advisory boards

The Washington Examiner cited CEI senior economist Ryan Young regarding Federal Reserve Chairman and his new task force Council of Economic Adviser Thomas Sargent.

Ryan Young, senior economist at the Competitive Enterprise Institute, told the Washington Examiner that Sargent is perhaps the biggest name on the list, given his Nobel Prize in economics, awarded in 2011.

Young said that Sargent is a major proponent of the idea that inflation expectations can end up becoming a self-fulfilling prophecy.

“So what Thomas Sargent would say is then that Warsh has to back up his words with actions, and people have to believe what he says; otherwise, they’re not going to have any effect,” Young said.

Harvard professor Mankiw, Young added, has one of the most well-known principles of economics textbooks for undergraduates. He also described Mankiw as slightly right-of-center and a centrist, and predicted he would be a voice of “calm and reason” on the task force.

Read the full article at the Washington Examiner.