Back in October, Senator Bernie Sanders put together a panel of economists and other public policy experts to come up with a plan to “reform” the Federal Reserve structure. As his news release makes clear, there is a lot of room for improvement.
Sanders announced formation of his expert advisory panel in the wake of a damning report that faulted apparent conflicts of interest by bank-picked board members at the 12 regional Fed banks.
Top executives from Goldman Sachs, J.P. Morgan Chase, General Electric and other firms sat on the boards of regional Federal Reserve banks while their firms benefited from the central bank’s policies during the financial crisis, the Government Accountability Office investigation found. The dual roles created an appearance of a conflict of interest, according to the GAO.
The surprising part was that the panel had a significant number of MMT economists. People like L. Randall Wray, William Black, James Galbraith, and Stephanie Kelton. With all that MMT on the council and the strong showing from the UMKC economics department, I’m optimistic about the reforms they’ll come up with. Wray has been writing about the Fed since being on the panel. I think it gives a little hint of the kind of things he and other MMT economists are recommending. Here’s links to his articles:
The title’s alone are encouraging and give you an idea of what he’s writing about. I highly encourage reading all of them. It (hopefully) is a preview of the final recommendations the panel will deliver to the good Senator.