Apologies for the awful pun this Monday morning, but it looks like Summers is out and there is no stopping the Yellen juggernaut for the Fed. Apparently, and according to the FT article linked above, lefty Democrats opposed his nomination as he was vilified as an architect of financial de-regulation. I don't even know where to begin with what's wrong on that one (I only have so many megabytes allocated to me for this website), so I'm not even going to try. And while I can't comment on how Larry Summers would have been as a Fed chief, I think having a monetary dove steeped in New Keynesian economics as the prohibitive favorite is not a situation that anyone (the US, Europe, emerging markets, anyone who holds cash) should be proud of.
Dr. Christopher Hartwell is an institutional economist and President of CASE Warsaw. All commentary on this page is exclusively his own and in no way represents the views of CASE, his wife, his dog, or anyone else. Especially not his wife or his dog.