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If you have knowledge and expertise, don’t bother to apply

06/08/2019

This post is to draw attention to an excellent post from Eric Crampton at his blog Offsetting Behaviour

and another from Michael Reddell at Croaking Cassandra on some of the weird positions taken around appointments to the Monetary Policy Committee being set up by the Reserve Bank of NZ.

Both repay careful reading

Crampton wrote

Quote of the day: Draghi Edtion

ECB governor Mario Draghi raised concerns over the appointment of the new Central Bank governor, Gabriel Makhlouf, directly with the Minister for Finance Paschal Donohoe, the Sunday Independent reports. The paper says the concerns centre on the fact Makhlouf has no experience working in a central bank and is not an economist.

From the Irish Times

And is not an economist.

Isn’t it nice that there are central banks out there who think that expertise in monetary and macroeconomics is important in Central Banks? By contrast..

The link is to a useful article at interest.co.nz

Michael Reddell has a post on the same subject he finishes his excellent post with this:

Robertson, Orr, and Quigley deserve to be the laughing stock of international central banking – worse than Trump on this score, the only people responsible for advanced country central banking who wanted to ensure that no one with any real expertise – who might add real value – got near monetary policy decisionmaking (even as the Bank’s own internal research capability has been gutted).¹ The Bank’s international reputation in the 1990s was always a bit overdone (better than deserved), but those who were involved then, and those who once sang the Bank’s praises then – could probably never have imagined things would quite come to this. But bureaucrats guard their bureaucratic empires, and ministers often let them get away with that. And so mediocrity triumphs and the opportunity to produce a good quality MPC has passed for now. Fortunately, the prohibition on expertise isn’t in the Act, this Minister won’t last for ever, Quigley’s term ends soon, and the very future of the Board is up for grabs. But if you don’t start off new institutions strongly, it is hard to pull them up to a better, more internationally comparable standard, at some later date. Such a shame. Such a lost opportunity

My take on this is:

  • knowledge not needed
  • kowtowing to the Governor and Minister is a prerequiste
  • adherence to mystical beliefs and climate cults is an advantage

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