Author Archives: jfrankel

Federal Reserve Notes: Rich Clarida Rocks

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As I mentioned in an earlier post, Richard Clarida is one of the candidates for Fed Vice Chair who is most actively under the consideration by the Administration. His obvious qualifications are an outstanding academic reputation (Columbia University and the NBER), experience in government (in the George W. Bush Treasury) and now ten years of experience in the financial markets (at PIMCO).  But some might be interested in a talent that is less widely known: Rock music performer.

I first became aware of Rich when he was still a grad student, playing rhythm guitar and singing in a convincing Beatles tribute band that performed in Harvard Square. Over the years he has recorded an oeuvre of songs – some of them at the Beatles’ old Abbey Road studio.  He released a CD under the name Time No Changes in 2016.  He composes the songs, writes the lyrics and sings the vocals, backed by an assembled group of studio musicians.  You can get the individual songs on Spotify, but I have just listened to the CD. read more

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Three Candidates for Fed Vice-Chair

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It will be tough to fill the shoes of Stan Fischer as Fed vice-chair.  The candidates most actively under consideration by the Administration, to serve as number 2 to Jay Powell (who has just been confirmed as Chair), are Rich Clarida, Larry Lindsey, and John Williams.  Clarida and Williams are both excellent economists; either one would be great for this job.

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Trump’s Tax Cut Will Worsen the Current Account Deficit

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January 19, 2018 —  President Trump and the Republicans succeeded last month in passing their big tax cut.  It may not have many of the desirable attributes of true tax reform (equity, efficiency, bi-partisanship, revenue-neutrality, or cyclical timing); but it is major legislation, as promised.  What about that other major Trump promise, to cut the US trade deficit?  The tax cut is virtually certain to raise the budget deficit and in turn to raise – not lower – the current account deficit.  Call it the Return of the Infamous Twin Deficits.  As when Ronald Reagan cut taxes in 1981-83 or when George W. Bush cut taxes in 2001 and 2003. read more

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