The Chairman of the Fed (elect) ... Ben Bernanke

Ben Bernanke has been named as successor to the most powerful central banker in the world... Alan Greenspan. But just who is he...

Professor Bernanke is foremost a monetary economist. Up till four years ago, he was the Howard Harrison and Gabrielle Snyder Beck Professor of Economics and Public Affairs at Princeton University. Since then, Professor Bernanke has served as a member of the Board of Governers of the Federal Reserve System. Just earlier this year, he was appointed to the post of the Chairman of the President's Council of Economic Advisors.

On February 1st 2006, he will be confirmed by the senate. How will the successor to Greenspan fare? How do his views line up to Greenspans? He is best known for his views on inflation targeting. His recent 1999 article with Mark Gertler of NYU forms the majority view amongst economists, where he argued that central bankers should only focus on asset prices in so far as they influence people's expectations of inflation. Targeting asset prices would create greater instability in the economy. He is also a strong advocate of an activist Fed, whilst maintaing the key to besting inflation is to anchor the private sector's expectations of inflation.

This particular author thinks that the transition from Greenspan to Bernanke will be smooth, so long as Wall Street and the public at large, believe in his ability to succeed Greenspan ....