Is There a Peter Diamond Problem?

As you read Alabama Senator Richard Shelby’s reasons for refusing to allow a Senate vote on the confirmation of Peter Diamond to the Federal Reserve Board of Governors, keep in mind that Diamond recently won a Nobel Prize:

WASHINGTON — President Barack Obama will nominate Mary Jo White to lead the Securities and Exchange Commission, tapping an attorney with broad experience in prosecuting white-collar crimes to lead an agency that has a central role in implementing Wall Street reform. A White House official said the president would announce White’s nomination during a ceremony in the State Dining Room Thursday afternoon. At the same event, Obama will renominate Richard Cordray to serve as head of the Consumer Financial Protection Bureau, the official said.

WASHINGTON — President Barack Obama will nominate Mary Jo White to lead the Securities and Exchange Commission, tapping an attorney with broad experience in prosecuting white-collar crimes to lead an agency that has a central role in implementing Wall Street reform. A White House official said the president would announce White’s nomination during a ceremony in the State Dining Room Thursday afternoon. At the same event, Obama will renominate Richard Cordray to serve as head of the Consumer Financial Protection Bureau, the official said.

WASHINGTON (AP) — President Barack Obama will nominate Mary Jo White to lead the Securities and Exchange Commission, tapping an attorney with broad experience in prosecuting white-collar crimes to lead an agency that has a central role in implementing Wall Street reform. A White House official said the president would announce White's nomination during a ceremony in the State Dining Room Thursday afternoon.

That's the header of my New York Times column today, here are some excerpts, starting with the health care issue:

President Obama will announce two new federal appointments today that are designed to send a signal to the financial industry that they aren't getting a free pass from Washington anymore.

I should add that it’s true that, as Richard Shelby says, Peter Diamond is not primarily known for his work on monetary policy. Instead he’s best known for his work on pension issues, and secondarily for his work on tax issues. That said, he’s brilliant (as anyone) and seventy years old, so he’s actually published quite a bit on a variety of topics. For example, he’s done considerably more academic research relevant to monetary policy than has Richard Shelby.