Gary Gorton replaces Gordon Gekko at the Fed

It appears that the Fed has regained some intellectual awareness of what is going on. The problem now is that they have to find new ideas how to run monetary policy by whatever instruments they can think of. One outcome is the possibility that they may abandon inflation targeting.

Bloggers Visit Treasury

The Treasury Department has started a program to make top Treasury officials, including the Secretary of the Treasury, available for give-and-take discussions (off the record, no attributed quotes allowed) with small groups of bloggers. The author was privileged to be one of seven guests to attend such a meeting on August 16, 2010. The meeting involved some contentious discussion and lasted for 2 1/2 hours. 30 minutes more than the scheduled time. This is the first of the author’s reports on that experience.