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Best known for his 2006 study praising Iceland’s economy. OUCH.

Looks like it’s not only folks round here who have a reputation to live down.

The Man Who Praised Iceland’s Economy Supports Bernanke

Frederick Mishkin, the former Federal Reserve Board Governor who is best known for his 2006 study praising Iceland’s economy to the sky, endorsed Bernanke’s reappointment as Fed chair. According to the NYT, Mishkin commented:

“My view is Chairman Bernanke helped save the world from depression, … Whether you agree with every policy he’s pursued or some of the ways the bailouts were done, the outcome here, given the severity of the shock, is a good one. But that’s hard to explain to the American public when we’re sitting with 10 percent unemployment.”

It would have been worth reminding readers of Mishkin’s track record. It probably also would have been worth pointing out that the severe shock that Mr. Mishkin referred to was the result of Bernanke and Greenspan’s failure in managing the economy.

–Dean Baker

Filched from here. Thanks to Marc for the link!

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  • cactusZonie January 24, 2010, 2:45 am

    I have posted the link to Friedman before on your BLOG , Alda.

    This is the “Get Government Out Of EVERYTHING” economist that arrived in Iceland in 1986 and held a few interviews at the University Campus to get everyone on board to free market “CAPITALISM” .

    Congratulations Iceland. You listened to him. Just like America , you took down all the protective barriers called “Government” and decided to throw it all into an un regulated “FREE” Market system.

    Looking into the rear view mirror , is this not great? Let’s get this “jobless” recovery going so we can repeat this all over again!!

    http://video.google.com/videoplay?docid=1107486496526618897#

    http://www.paecon.net/PAEReview/issue50/Tomasson50.pdf

  • Alexander E. January 24, 2010, 5:04 am

    He is absolutely RIGHT!
    He was praising the system he believes is the best known, the system he is designing, the system he is enforcing over the world (same as communists have been doing btw).
    The only problem – this is the wrong system falling apart.
    And Iceland is just a weathervane that was blown off the roof of Mishkin’s “palace” (so to speak).
    What else do you expect him to say – “I was wrong all my life. I’ sorry”?

  • Luna_Sea January 24, 2010, 6:45 am

    Propaganda via the AP (“…If Bernanke’s nomination were derailed it would send tremors through Wall Street…)

    and if Obama represents “change” then I am the queen of England.

    http://hosted.ap.org/dynamic/stories/U/US_BERNANKE_SENATE?SITE=CAGRA&SECTION=HOME&TEMPLATE=DEFAULT

  • James January 24, 2010, 9:19 am

    Voodoo economics as pacticed by central bank witch doctors. And it’s funny they still think they’re more intelligent and more knowledgeable than the rest of us. Similar to Myron Scholes and Robert Merton (Nobel Prize-winning economists) at Long Term Capital Management who, even after their company’s total collapse, still maintained that their trading strategy was correct but the markets had been wrong…

  • Joerg January 24, 2010, 9:46 am

    This looks like one of the manifestations of adulation and worship of Davið Oddsson by some of his followers, which I can still find in some articles nowadays.

    In this case it’s like judging an arsonist by his efforts to put out a fire he himself had assisted to set – a jugement by somebody, who appears not to know the difference between fire and water.

  • alda January 24, 2010, 11:12 am

    Congratulations Iceland. You listened to him. — I always find it amusing when people use the term “Iceland” as though it was some kind of unified whole.

  • kevin o'connor waterford Ireland January 24, 2010, 1:17 pm

    This sob story surfaced in the guardinista today. no longer praise is given to the former unfettered tiger economy on speed and champagne,the most expensive SUV’s,5 foreign holidays per year and lashings of fitted kitchens.
    http://www.guardian.co.uk/world/2010/jan/24/iceland-economic-crisis-family-children

    Mind you Alda does possess a pair of exquisitely hand crafted boots made of the finest Italian leather,so maybe there is some truth in the life of Riley that Icelanders enjoyed.I bet they stay in the wardrobe as she is now to guilty to flaunt her obscene wealth on the streets of Reyjavik for fear of being Lynched, Ha Ha 🙂

  • cactusZonie January 24, 2010, 7:52 pm

    “I always find it amusing when people use the term “Iceland” as though it was some kind of unified whole.”

    In 1991 Iceland VOTED , as a unified WHOLE, to put the bums in power to deregulate everything into private hands.

    Where did that disastrous decision end up leading the country?

    The element of human greed will not allow free market fundamentals to work. It’s that simple.

  • Vikingsson January 24, 2010, 8:55 pm

    All part of the same world wide ponzi scheme. It worked beautifully and the few have now walked off with trillions.

    Alda, not everyone everywhere drank the kool aid of these experts or feel they should be responsible for the mess. Most had no way of knowing a better or worse way and just listened. But as state policy the kool aid was distributed and every country drank it. So in that respect, Iceland did too. The country if not the actual people. You and I were powerless and here we are.

    I lost big time as well but smelled it coming so just before the big crash I spent my last real dollar in Iceland. With my set aside for this day money I paid off my debts and now only have the ongoing debt of car and groceries. I’m dead broke and downsized but owe nothing.

    I can’t listen to the professionals or the professional pundits anymore. I didn’t believe them before and I damn sure don’t believe them now. I get better insight on this blog than any Mishkin could ever convince me of.

  • Vikingsson January 24, 2010, 8:59 pm

    correction. It was just *after* the big crash (3 weeks in fact) that I went to Iceland to spend what little I had and knew would be my last. Sorry but it was obvious that the balloon was about to pop and I’m not talking about Iceland in particular.

    Iceland feels like home and I miss her.