Scott wins Ezra Klein’s Wonky awards

This is from Ezra Klein’s “first-annual Wonky awards”:

Central bank of the year: Sweden’s Riksbank. It’s hard to avoid noticing that Sweden has dodged the economic woes that are ailing most of the world. Part of the credit here goes to deputy governor Lars Svensson, who spearheaded Sweden’s extremely aggressive monetary policy. In 2009, the Riksbank — Sweden’s central bank — was the first bank to experiment with a negative interest rate. And it had assets on its balance sheet equal to a stunning 25 percent of GDP, a sign of how much cash it was injecting into the economy, compared with just 15 percent for the Federal Reserve. The bold moves worked: Sweden has been growing at a decent clip.

Central bank dissenter of the year: Charles Evans. While some on the Federal Reserve’s board of governors are worried that the central bank is doing too much and risking inflation, Evans has argued that the Fed isn’t doing enough to boost the economy. The president of the Federal Reserve Bank of Chicago, Evans is one of the few bankers who seems to recognize that 9 percent unemployment should, as he put it, set policymakers’ hair on fire as much as a slight uptick in inflation usually does.

Central bank harassers of the year: Though Rep. Ron Paul is the Federal Reserve’s loudest critic, it’s Bloomberg News that may, unexpectedly, have been the biggest thorn in Ben Bernanke’s side. Through a FOIA request, the news agency found out how individual banks took advantage of cheap lending from the Fed during the height of the financial crisis, ultimately reaping some $13 billion in profit from the loans. The new details sparked a huge tide of criticism against the Fed’s lack of transparency.

Most influential-yet-obscure economic blogger: Scott Sumner. Be honest, how many people had even heard of Nominal GDP level targeting before this year? No one. But as the economy stagnated, and policymakers seemed increasingly incapable of mitigating the pain, many analysts started reading Sumner’s blog with interest. So far, the Federal Reserve has rejected his idea for NGDP target—under which the Fed would essentially target a combination of real output plus inflation rather than focus on curbing inflation alone—but the notion has attracted support from everyone from Paul Krugman to Tyler Cowen to Goldman Sachs. And much of that has to do with Sumner’s near-monomaniacal focus on the topic.

Congrats Scott, you are becoming a super star…correction you ARE a super star

HT David Levey and Doug Irwin

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1 Comment

  1. Benjamin Cole

     /  December 31, 2011

    Excellent wrap-up for the year.

    Reply

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