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December 16, 2004
More Rumors from Inside the Topkapi Palace
Viziers-to-be decline offers to come close to the throne. Two thoughts: (a) it's interesting about Greenspan, and (b) don't do it Ben--if Greg Mankiw couldn't get a veto of the corporate tax bill and couldn't block the bra tariff, it's hard to see what the point of taking the job would be.
From the Financial Times:
Greenspan 'rejected' offer to become US Treasury chief By Andrew Balls in Washington: Senior Republicans sounded out Alan Greenspan, chairman of the Federal Reserve, about taking over from John Snow as US Treasury secretary, the Financial Times has learnt. The informal approach, which would have put the most respected economic leader in the US in charge of President George W. Bush's ambitious second-term domestic agenda, was declined. The administration's plans to overhaul Social Security and reform the tax system face a stern challenge on Capitol Hill and scepticism in some quarters on Wall Street. The approach to Mr Greenspan made at arm's length from the White House reflected concern that Mr Snow was not the most effective champion of Mr Bush's agenda....
In a separate effort to strengthen the US administration's economic team by bringing in a Fed policymaker, Ben Bernanke, an influential Fed governor, is the leading candidate to replace Greg Mankiw as chairman of the White House Economic Advisers.... Mr Bernanke, whose candidacy is supported by a number of economists in, and close to, the administration, has shown himself to be an effective communicator on complicated economic subjects. He has not been formally asked if he would take the job but has been sounded out by administration officials. Mr Mankiw, current CEA chair, is expected to return to his academic position at Harvard early next year. Mr Bernanke has demonstrated well-developed political skills, raising new ideas at the Fed without raising the ire ofMr Greenspan, who in the past has clashed with free-thinking governors. He is also seen as a potential replacement when Mr Greenspan steps down as Fed chairman, along with Martin Feldstein and Glenn Hubbard, both academic economists and former CEA chairs.
Posted by DeLong at December 16, 2004 02:50 PM
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Comments
The Financial Accounting Standards Board has just ruled that companies must begin to deduct options expense from profits beginning with reports issued in July 2005. This is a most important accounting rule change, and will effect the profits of technology companies especially. As companies begin to expense options, we are going to find a lot of technology companies are more expensive than we realized. Lots less profits. Careful.
Posted by: anne at December 16, 2004 03:13 PM
anne: You may have forgotten one thing -- much fewer options, presumably.
Posted by: cm at December 16, 2004 04:25 PM
"Mr Mankiw, current CEA chair, is expected to return to his academic position at Harvard early next year."
Brad, you keep writing that no one leaves the Bush admin with their reputation intact, and yet Mankiw is going to resume his former prestigious job after a thorough trashing of your profession. No one can hold him to what should be the standards of your profession but you and your peers. The Bush admin tendency to "take responsibility" with no consequences seems to have spread so that it is now culturally acceptable in all walks of life.
Shouldn't there be at least some mumblings that Mankiw should re-pay his dues, apologize publicly, serve four years at Bunker Hill Community College, or teach a class caled corruption of the CEA?
If, as a profession, economists are allowed to do what Mankiw has done, and I think you underestimate that damage of a well respected economists blessing Bush policy has done, what should we think of economics as a profession. Have you no standards of accountability? What levels of dishonesty are acceptable?
Posted by: theCoach at December 17, 2004 02:43 AM