The metamorphosis of Ben Bernanke | Gavyn Davies | Insight into macroeconomics and the financial markets from the Financial Times – FT.com

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This is a very interesting article from Gavyn Davies, the macro economist at the FT, in his weekly blog. The article provide a link to a paper by Professor Ball which I found really fascinating reading. Check them out!  

via The metamorphosis of Ben Bernanke | Gavyn Davies | Insight into macroeconomics and the financial markets from the Financial Times – FT.com.

Here is my response to Gavyn Davies blog:

Gavyn, Many thanks for a very interesting blog & sharing Professor Ball’s research. I have taken the time to read Professor Ball’s paper and am a bit surprised that he has concluded on the following two reasons for the radical change in Bernanke’s views: (1) “groupthink”; and #2# a shy reserved personality. The comparison’s with decision-making in the BoE MPC were interesting. In my experience, the role of a chairman is political, and I would be surprised if the chairman did not know the views/voting intentions prior to the meeting. I tend to agree with your conclusion that Bernanke did not press for the “nuclear ” options because the situation was not regarded as sufficiently critical.

Personally, I tend to agree with the economists who argue that the Fed has not been bold enough in addressing unemployment.  Interventions in 2008 helped the wealthy and privileged from a thirties type crash which resulted in numerous suicides. In my view, there has been too little intervention to help the middle classes and the poor.

Treating China as an enemy – Telegraph Blogs

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This is an excellent article from Ambrose Evan-Pritchard, the International Business Editor, at the Telegraph newspaper. Check it out!

Treating China as an enemy – Telegraph Blogs.

I found it particularly interesting that the article was citing Professor Etzioni’s views. I first became aware of eminent sociologist, Professor Etzioni, when I was a post graduate student in 1971/72. His work entitled “cosmopolitans and Locals” had a profound influence on my life. I always aspired to be a “cosmopolitan”. In the early days, I was fascinated with the idea of going West and in my field, at the time,  the US led the way. Much of my early career was with US multi-nationals and I have wonderful personal memories of times in the US. I also remember well the difficult years of US foreign policy and debating the merits and demerits in a Paris bar. 

Now that I am retired, I am pleased that my wife has become a cosmopolitan as well. Interesting, we are heading East this Autumn, starting with an extended holiday in China. With much of Europe in recession, with political leaders fixated with austerity, I find it a timely opportunity to reflect on the BRIC countries. First stop is China – the others will have to wait.  

As an aside, I often reflect on youth unemployment and the myopic policies of many Governments. My advice to any youngster without privileged connections, is to become a “cosmopolitan”. More and more, I seem to be hearing of talented youngsters in Mediterranean countries considering moving to Latin America. Yesterday, I was talking to my nephew in Lima, Peru –  by profession he’s a school teacher, who has recently relocated to Lima and obtained a promising professional teaching post.

Returning to the Telegraph article, I certainly endorse Professor Etzioni’s views on China. Do you?

As a final thought perhaps those concerned with healthcare reform, on both sides of the Atlantic,  should read Prof. Etzioni’s work on “cosmopolitans and Locals“?