Nobel Laureate Diamond Is Unqualified for Fed | Mark A. Calabria | Cato Institute: Commentary

Nobel Laureate Diamond Is Unqualified for Fed | Mark A. Calabria | Cato Institute: Commentary: "According to Section 10-1 of the Federal Reserve Act, the next member of the Board of Governors may not come from a Fed district that already has representation on the board. As both common sense and his Senate paperwork confirm, Diamond is from Massachusetts. So is Fed Governor Dan Tarullo. Unless Tarullo is resigning, Diamond is ineligible.

To get around this quandary, the White House says Diamond is actually from Chicago. The basis of this claim is that he has lectured at Northwestern University. To believe that giving a lecture at the school, located in Evanston, Illinois, makes one 'from' Chicago displays contempt for the law that is unique even for this administration."

"In fact, we largely had price stability in the days when the Fed board lacked academics.

If anything, this era of a 'scientific' Fed has been characterized by rampant inflation. That shouldn't be surprising since it was academics who came up with the notion that you can debase your way to prosperity."