How will change the monetary policy at the Federal Reserve after Frederic Mishkin resigns?

Question

http://www.forbes.com/afxnewslimited/feeds/afx/2008/05/28/afx5055515.html

http://www.federalreserve.gov/aboutthefed/bios/board/mishkin.htm

thanks in advance

Answer 1

Mishkin was definitely in favor of a non-activist Central Bank, i.e. let the market forces decide.

Bernanke came in with that opinion but recent events indicate more of an activist position in jumping into to stabilize markets.

My guess is we'll continue to see more experimenting with Fed activism which can make everyone a bit jumpy. It's great when it works; can be near-catastrophic when it doesn't.

So we're down to just four Governors out of seven, eh? And I wouldn't expect to see any of the current nominees approved by the senate until after the next election.