Tuesday, June 7, 2011

Prediction: The White House Wants Another Keynesian Economist



Austan Goolsbee, a longtime adviser to President Obama and the only economist left on his core economic team, plans to leave as chairman of the Council of Economic Advisers by September after a year in the job to return to the University of Chicago.

With the recovery flagging, the White House is eager to name a successor to Mr. Goolsbee this summer and is considering several academic economists, an administration official said on Monday. The job requires Senate confirmation.

While appointing an economist who subscribes to the Austrian school of economics might do the country some good, that sort of out-side-the-box thinking is beyond the hide-bound nature of the current administration. We will have yet another Keynesian telling us all to boost aggregate demand (AD). When that doesn't work, they'll institute Quantitative Easing 3 to goose AD with monetary inflation.

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