Sunday, December 29, 2013

Alfidi Capital Endorses Stanley Fischer for Vice Chair of the Federal Reserve

The ascension of Janet Yellen to the chair of the Federal Reserve's Board of Governors is just about settled, with only formalities remaining.  This leaves an immediate need for a highly competent vice chair.  I can think of no better candidate than Stanley Fischer, former governor of the Bank of Israel.

My first introduction to Dr. Fischer's work was his textbook Macroeconomics (with co-authors) that I used in my undergraduate business studies.  The writing was clear and brilliant.  I still refer to this textbook sometimes, along with my graduate school textbooks, when I need to revisit an economic concept for my blog.  I'm a genius but I do learn from geniuses like Dr. Fischer once in a while.

Dr. Fischer's credentials as an economist are impeccable.  This WaPo article shows how he was able to bridge the divide between competing academic trends.  He was the number two person at the IMF through the Asian currency crisis of the late 1990s and the world came out just fine.  His skillful stewardship of the Israeli economy during the 2008 global financial crisis helped that country avoid the troubles that caught the rest of the world in a bind.

Stanley Fischer added his expertise to the world consensus advocating containment of Iran's nuclear ambitions.  He noted in 2012 that sanctions would exert political pressure on Iran to moderate its behavior.  Sure enough, Tehran eventually came around to negotiations.  The diplomatic agreement governing Iran's use of uranium isn't perfect but its finalization vindicated Dr. Fischer's opinion.

This guy would serve as a much-needed counterpoint to Janet Yellen at the Fed.  His intellectual flexibility in academia means he is open to policy innovations that can help the Fed extricate itself from its enormous balance sheet and ZIRP.  He has an enviable track record of successful crisis management at central banks, transnational institutions, and the private sector.  He's the ideal candidate to restore the Fed to sane policy.

I searched for open source discussions of his record and I was dismayed to find anti-Semitism in the financial blogosphere.  That is disgusting.  This man is a success and yet losers throw hatred around the Internet.  I'll remind these fools that the US has the right to favor those nations that share its democratic values.  Israel is a stable, free society that is open to immigration.  It has long been one of America's best friends in the Middle East.  The US also has a long tradition of granting dual citizenship to Americans who share their personal histories with our closest allies.  All of these are factors in Dr. Fischer's favor.

Dr. Fischer comes highly recommended by the power centers that matter - CFR, Bilderberg, and all the rest.  They're my kind of crowd and that's good enough for me.  Go Stan!