Nobel Prize Winner Economic Theory Difficult to be Recognized

Submitted By: Jerri Lily
Has 70-year-old American economist Peter early 60's in the last century began to pay attention to the employment rate of unemployment and social problems, and finally this year for its achievements in this field, and two other economists won the Connaught Bell Prize for economics, but there is news that the "employment experts" in their own career path has encountered some "little obstacles", to serve in the U.S. Federal Reserve probably no small difficulty.

Authorized by Congress in difficult economic theory

Although companion to share the 2010 Nobel Prize in economics, economic theory, but Diamond is difficult to get the U.S. Congress approved in April Obama had into the Federal Reserve, the Senate proposal was rejected.

Diamond's opponents question its practical experience, and does not endorse his conclusions. From Alabama's U.S. Senate Banking Committee Richard Shelby, senior Republican lawmakers is one of the opponents of the nomination. Shelby in an interview yesterday, said that despite the Nobel Prize in Economics is an important recognition of Diamond, but the Federal Reserve System Who is eligible to serve on the Committee Management "is not a decision by the Royal Swedish Academy of Sciences."

Shelby acknowledged Diamond was a "skilled economists," he also recognized expertise in tax policy, but Shelby said, Diamond on the "so-called monetary policy", that is of national economic regulation and control interest rates and other economic growth, employment and inflation, the lack of macro-economic policy context means "not ready" as the central bank managers, "I believe, by a need to learn on the job determined by the management of monetary policy will not be useful uncertainty in the immediate environment. "

The White House in April, including Diamond, including the nomination of three candidates for the Federal Reserve, and the remaining 2 were approved last month by the Senate, and only Diamond has not yet approved.

Obama even behind the Diamond

And opponents point of view contrary to the United States of Economics, University of Chicago finance professor at Jaap even behind Diamond. Kashyap believes that the Diamond is qualified as a member of the Fed's argument "is simply absurd." Obama again stressed that the Senate approve this proposal. Obama said that he had been into the Federal Reserve because he wanted to "extraordinary professionalism" play to the U.S. economic recovery.

Diamond on the 11th a press conference held in the morning, said he did not intend to withdraw from the list of candidates for Federal Reserve members.

Diamond in the early 80s of last century is one of the study concluded, the Government benefits made unemployed, not in a hurry to re-appointment, be patient to find a suitable job, which pulled up the unemployment rate. Some Republican senators have agreed to Diamond's views, arguing that the U.S. government since the recession began, the implementation of the various unemployment measures to make people lack the motivation to find work, causing the unemployment situation not improve.

The Royal Swedish Academy of Sciences said, the economics prize was awarded to Diamond and two other economists, because of their research findings so that people understand the "rules and economic policies on unemployment, vacancies and wages of way." The 80's and 90's, the three scholars are widely used to solve the problem of high unemployment in Europe. One conclusion is that the reason why unemployment in Europe's unemployed, because they are unemployed for too long, workers have the skills to degradation, so they are hard to find a job.

Diamond believes that the U.S. is also likely to fall into the same vortex, he believes that the United States should create new jobs as soon as possible. "The new fiscal stimulus program is clearly to do," Diamond said. His view has been supported by many Democrats.

Nobel Prize selection process may be facilitated

In the Federal Reserve, its research expertise on employment have been repeatedly mentioned, but also because his view is clearly biased toward Democrats, the current policy, which "offended" the part of disaffected Republicans.

In the occasion of the midterm Congressional elections, the nomination of the Diamond was rejected again. Many Republican senators pointed out that the Diamond lacks experience in the formulation of macroeconomic policy.Senate Banking Committee Chairman Dodd said Congress reconvenes after the midterm elections, when he would hold new hearings. Some analysts pointed out that the Nobel Prize, the Diamond the opportunity to greatly increase access to the Fed, which also made against him into the Republican members of the Fed's very embarrassing.

White House deputy director of the Economic Commission for Jason Furman breakfast meeting in Denver, the Republicans were criticized. "I hope, that a handful of Diamond into the Federal Reserve Board against the people who see evidence of ability to permit Mingdaimengde there will be." Furman National Association for Business Economics in the United States made the comments.