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Must-Read: Last summer it seemed to me a significant and serious failure of governance on the part of the Federal Reserve Board of Governors in Washington DC that they had approved the search committee's choice of its own chairman to replace Charles Plosser as President of the Federal Reserve Bank of Philadelphia.

It is, I think, almost universally agreed that Charles Plosser was a significant failure as President of the Federal Reserve Bank of Philadelphia: undistinguished as an administrator of the Bank, and a disaster as a member of the Federal Reserve's Open Market Committee. From the transcripts of the FOMC we can see him in action: always wrong, never in doubt, intellectually uncurious, and completely unwilling either to even consider that those who disagreed with him had arguments on their side or to make even the smallest efforts to mark his own beliefs to market.

Now Duncan Black informs us that it does indeed look as though the appointment of Patrick Harker as President of the Federal Reserve Bank of Philadelphia was a considerable mistake.

Personnel is policy, people. One of the most elementary principles of successful bureaucracy tells us the frequency with which the chair of a search committee should be appointed to the job under consideration. It is easy to remember: it is never. Another of the most elementary principles of successful bureaucracy tells us the frequency with which the appointees to other positions of an unsuccessful previous incumbent should be appointed to the job under consideration. It is also easy to remember: never.

Duncan Black: Area Fed Chief Does Not Understand Monetary Policy: "Oh Jeebus...

...Accordingly, I would like to see rates raised sooner rather than later. With an early start, we can better ensure that monetary accommodation is removed gradually and that inflation returns to the Fed’s 2 percent target smoothly. My fear is that the Federal Reserve risks losing its credibility and only adds uncertainty to the economic landscape the longer the Committee waits to begin normalizing policy.

Raising rates is how we increase inflation now?