For some time now we have been talking about the need for an oversight committee, free from political interference, who have a mandate to develop and recommend policy that delivers sustainable economic outcomes. This would include a mixture of fiscal, monetary and social policy with the aim to deliver sustainability, improved productivity, full employment and social calm. (GPEC)
We noted today that the USofA already seem to have created a commitee in an attempt to deliver some of this.
The new council of regulators empowered by Congress to head off potential risks to the financial system has met only once, but already its work is garnering plenty of attention.
One small problem; the political membership.
The council, led by Treasury Secretary Timothy F. Geithner and composed of top regulators from the Federal Reserve, Federal Deposit Insurance Corp. and other agencies
Ok, it isn’t a small problem at all , it is a huge one. Asking Geithner and Co. to chair a commitee to develop policy to head off potential risks? Seriously, the first thing they would need to do is put themselves on the register.
This is however a fair idea, and something we would advocate with a broader mandate. This however is an appalling implementation, and is likely to deliver much of the same.
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