Mr. Mishkin departs from the Fed
Written by A Forex View From Afar on Thursday, May 29, 2008Back to www.thelfb.com
Mr. Mishkin has announced his intention to leave from the Fed, to return to his academic research. Mr. Mishkin resignation will create the third empty seat on the Fed’s voting committee, out of the 7 seats available.
This will certainly be a first for the Fed, having to work with 4 Voting Members only. The majority has to agree over an interest rate decision in order for it to pass.
Mr. Mishkin is well known in the academic environment for his Economic Research, being of one the most prolific researchers in his field. A list of his works can be seen here.
Both the WSJ and Bloomberg said his departure was influenced by the big distance from his wife (200 miles, from New York to Washington DC) saying Mr. Mishkin will make a twice as much working at the Columbia University, were he will return.
WSJ point out some of his incomes before coming to the Fed:
His financial disclosure report, released in 2007, shows that in the year before joining the Fed in 2006, he made a tidy sum dispensing advice to central banks, governments and business groups around the world. He collected a $134,858 consulting fee from the Icelandic Chamber of Commerce; $63,188 from the Riksdagen, or Swedish Parliament, who hired him to co-write a report on the Swedish central bank; $15,600 from the Central Bank of Chile, $15,575 from the Bank of Korea, $9,161 from the Bank of Spain and $4,250 from the Bank of Canada. That was all in addition to his salary from Columbia University.
I can’t tell the exact reasons why Mr. Mishkin has left the Fed mandate, but what I can point out, and for me it’s very funny, is both Mr. Mishkin and Mr. Bernanke are supporters of the Inflation Targeting system, something that is not spoken of at the Fed; they wrote a very well known research paper about it.
Source:
WSJ: Mishkin Resigns: A Look Back
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