Peter Diamond withdrew his name from being a FEderal Reserve governor nominee. Diamond who is an MIT labor economist was clearly miffed. He wrote a self serving whine in the New York Times lamenting that while he was qualified to be awarded a Nobel prize in economics, certainly he was qualified to be on the Fed board. He is wrong. Certainly a Nobel prize is noteworthy but it does not guarantee expertise in monetary economics or financial institutions. Indeed, Diamond's area is labor economics and although Diamond says that understanding of the labor market is a "central part" of managing monetary policy, that statement by itself should disqualify him. Sen. Shelby (R-AL) ranking minority member of Senate Banking was right to insist on someone who would not need on the job training as Mr. Diamond would require. Put Diamond on the NLRB but not the Fed board.
Harold A. Black is professor emeritus in the Department of Finance, University of Tennessee, Knoxville having retired after 24 years of service. He has served on the faculties of American University, Howard University, the University of North Carolina - Chapel Hill and the University of Florida. His government service includes the Office of the Comptroller of the Currency and as a Board Member of the National Credit Union Administration. He also has served on the boards of directors Home Savings of America and its parent company, H. F. Ahmanson & Co., Irwindale, California prior to its merger with Washington Mutual Savings Bank, on the board of New Century Financial Corporation, Irvine, California, then the nation’s largest real estate investment trust and as director and later chairman of the Nashville Branch of the Federal Reserve Bank of Atlanta. He writes an occasional article for the Knoxville News-Sentinel at http://www.knoxnews.com/staff/dr-harold-black/. His web page is haroldablackphd.com