Peter Diamond, Held Up in Senate for Fed Post, Wins Nobel

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Monday, October 11, 2010 at 9:51 am

Some very just desserts on this Columbus Day morning: Peter Diamond, a lauded economist at MIT, won the Nobel Prize, along with Dale T. Mortensen and Christopher A. Pissarides. The three economists won for their examination of “markets with search frictions.” In Diamond’s case, he focused on labor markets and unemployment.

But Diamond remains held up in the Senate confirmation process for a Federal Reserve seat, due to the objections of Republican senators over his qualifications. Again, they have questions about whether Diamond, who once taught Fed Chairman Ben Bernanke economics and now has won a Nobel prize, is qualified.

Here’s Sen. Richard Shelby (R-Ala.) on Diamond this summer: “I do not believe he’s ready to be a member of the Federal Reserve Board. I do not believe that the current environment of uncertainty would benefit from monetary policy decisions made by board members who are learning on the job.”

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One would think that Senator Richard Shelby (R-AL) would “learn on the job” before opening his mouth about Professor Peter Diamond of MIT, who taught Federal Reserve chairman and has now won the Nobel Economics Prize; before saying Diamond would have “learn of the job” when confirmed to a Federal Reserve Board position.


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