Would You Hire Ben Bernanke?
Considered by many as one of the most powerful people in the world, how much do you know about Ben Bernanke, the Chairman of the Federal Reserve? A lot has been made about the ability of Ben Bernanke of late, especially with the way the economy has struggled since he took over at the beginning of 2006. Some say he’s re-shaping the Federal Reserve and single handedly responsible for the rebound we’ve seen of late while others say he’s ruining our economy. There is no doubt about his intelligence, however; some question whether he has what it takes to effectively fill one of the most important positions in the world.
Today, I want to try something a little different. Let’s say you had the power to elect the Chairman of the Federal Reserve. Would you hire Ben Bernanke? Before you vote, review the sample cover letter, resume and list of referrals that I’ve put together.
To vote – post a comment that indicates whether you would or wouldn’t hire him and why. I will compile the results and share them in my next post, which will also include some policy changes Mr. Bernanke has made during his tenure and what effects they’ve had on the economy.
Cover letter
I would like to submit my resume and references for your consideration for the vacant Chairman of the Federal Reserve Board position. As you will see, my previous work experience and knowledge of the Great Depression makes me an excellent candidate for the vacant position.
As we face difficult economic times it is important to learn from our past and make sure we do not repeat the same mistakes. My extensive research and understanding of the Great Depression and the mistakes the Federal Reserve made to exacerbate the problems will help me direct the Federal Reserve and protect the people of this country.
I believe the recent economic problems support my Financial Acceleratory Theory. It shows that when faced with a mild downturn the following domino effect occurs:
- Banks are likely to significantly cut back lending and other risky ventures.
- As a result, consumers and businesses must pay higher interest rates than usual, which results in less money to spend on other goods/services.
- As the economy slows, the value of homes and companies decrease, constricting credit even further.
- The cycle described above has the potential to result in a vicious cycle that turns a mild recession into a major depression.
With the recent credit crisis and other financial problems we face today, decisive action needs to be taken and I believe I am the man for the job.
I welcome any questions you may have in regards to my qualifications. Thank you for your consideration.
Ben Bernanke
Resume
Federal Reserve System
2005-2006 Chairman of the U.S. President’s Council of Economic Advisers (CEA)
2002-2005 Board of Governors of the Federal Reserve System
1990-2002 Member of the Academic Advisory Panel
1987-1989 Visiting Scholar in Philadelphia
1989-1990 Visiting Scholar in Boston
1990-1991, 1994-1996 Visiting Scholar in New York
Teaching
Department of Economics at Princeton University
- 1996-2002 Chairman of the Economics Department
- 1985-2002 Professor of Economics and Public Affairs
Graduate School of Business at Stanford University
- 1983-1985 Associate Professor of Economics
- 1979-1983 Assistant Professor of Economics
Department of Economics at NYU
- 1989-1990, 1993 Visiting Professor of Economics
Education
MIT (Massachusetts Institute of Technology)
- 1979 Ph.D. in economics
Harvard
- 1975 B.A. in Economics, Summa Cum Laude
- Won the award for best undergraduate Economics thesis
- Won the prize for outstanding senior in the Economics Department.
High School
- Valedictorian of Senior Class
- Received a 1590 out of 1600 in the SAT
- Self taught calculus
- Won the South Carolina State Spelling Bee
Awards
- Guggenheim Fellowship: Awarded to those who have demonstrated exceptional capacity for productive scholarship or exceptional creative ability in the arts.
- Sloan Fellowship: Awarded to provide support and recognition to early-career scientists and scholars.
Books Authored
- Essays on the Great Depression
- Macroeconomics Textbook(6th edition)
- Principals of Economics
- Principals of Microeconomics
- Monetary Policy Alternatives at the Zero Bound: An Empirical Assessment
References
David Leonhardt of the New York Times:
“Dr. Bernanke’s forecasts have been too sunny over the last six months. [On] the other hand, his forecast was a lot better than Wall Street’s in mid-2006. Back then, he resisted calls for further interest rate increases because he thought the economy might be weakening. He was dead-on right about that – and the situation would be even worse now if he had listened to his critics then.”
Secretary Donald L. Evans, CEO of the Financial Services Forum
“In the academic world, you can develop lots of sound ideas, but you have to convert those into good policies. He has been able to bridge the two.”
Alan Blinder, former Fed vice chairman and longtime colleague
“It’s not Ben’s personality to pound the table and scream and say you’re going to agree with me or else. It’s not his way. I’ve known him for 25 years. He succeeds at persuading people by respecting their points of view and through the force of his own intellect. He doesn’t say you’re a jerk for disagreeing.”
Jeffrey M. Lacker, President of the Richmond Federal Reserve
“The chair of any committee can respond to comments that challenge his view in ways that essentially inform the committee that the issue isn’t worth discussing. This chairman doesn’t do that. He takes other views seriously.”
Jeff Studebaker, Investment Advisor
June 25th, 2009 at 7:25 am
No. But I would ask him where he get’s his money to buy U.S. Government Debt, and when and how he plans on paying it back. He does seem to be a nice enough guy, but he is just a perpetuator of more of the same. Easy money got us into the current mess, easy money is not going to get us out. Sorry to say it, but real pain is probably what we need to solve long-term problems, but instead we just keep kicking the can down the road. That is obviously some what of a political statement, but the two are hopelessly intertwined. Please tell me why we continued to have a very very easy money policy after the economy recovered in 2002-2003. Even little ol me knew it was obvious that rates were too low.
Greenspan was no better. He get’s way too much credit. I think he has two easy money bubbles to his credit. Well, maybe Bernanke and Greenspan can both share the second one.
Obviously Bernanke’s resume is stellar and he is a very smart man. But both must be totally lacking in common sense or neither have the nerve or the will to stand-up to the Political establishment and Wall Street bankers.
June 25th, 2009 at 8:02 am
No, I wouldn’t hire him, his only experience seems to be in academia. I want someone who has some experience in the private sector.
June 25th, 2009 at 9:52 am
Ben’s resume’ is indeed impressive. However, what I want to know is how his decisions have been influenced, over time, by the current administrations policies or direction. The question today is not whether he’s qualified to hold the job but whether he was influenced to make a veiled threat to BofA CEO regarding the acquisition of Merrill Lynch. Reading his resume’ leads to the conclusion that he is qualified for the job. However, after listening to his replies during this mornings hearings, I question the honesty of his responses to questions regarding the pressure he put on the BofA CEO. One statement that struck me was;
“wouldn’t it be logical for BofA to request a lower price for the Merrill deal instead of backing away from it by implementing the MAC?”. Ben didn’t really answer this question which I believe is at the heart of the matter and seems a logical business response. I’m not sure how or if this will ever be resolved but I feel for Ken Lewis because he didn’t have any reason, that I can see, to go forward with the Merrill deal unless there was a “deal” offered by the Fed. Ben also skirted the question “Why did the Fed give BofA bailout funding, multiple times, when nothing had changed?”
June 25th, 2009 at 11:11 am
yes – on Bernanke
June 25th, 2009 at 12:33 pm
Yes, I would hire him based on his cover letter, resume, and references
June 29th, 2009 at 5:45 pm
It is hard to decide to hire someone by only looking at one resume. However I would have to look farther since Mr. Bernanke is lacking in any real business experience.