The Federal Reserve, through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession, an investigation by the Huffington Post has found.
This dominance helps explain how, even after the Fed failed to foresee the greatest economic collapse since the Great Depression, the central bank has largely escaped criticism from academic economists. In the Fed's thrall, the economists missed it, too.
"The Fed has a lock on the economics world," says Joshua Rosner, a Wall Street analyst who correctly called the meltdown. "There is no room for other views, which I guess is why economists got it so wrong."
One critical way the Fed exerts control on academic economists is through its relationships with the field's gatekeepers. For instance, at the Journal of Monetary Economics, a must-publish venue for rising economists, more than half of the editorial board members are currently on the Fed payroll -- and the rest have been in the past.
Thursday, September 10, 2009
How the Fed bought the economics profession
From Ryan Grim at the Huffington Post:
Before the middle of this century, the growth rates of our technology— which will be indistinguishable from ourselves— will be so steep as t...
My grandson had quite a day at school. He had learned that the economy had been suffering from things called Panics, capital P, during th...
You’ve written hundreds of articles on markets, gold, government, and perhaps monetary theory. You’ve hammered politicians and economists...
In spite of its success in bestowing wealth on some men while funding an unnecessary war ,  the National Banking System proved unsatisfac...