WASHINGTON — President Barack Obama's nomination of Ben Bernanke to a second term as Chairman of the U.S. Federal Reserve represents a sensible and pragmatic decision, but it is nothing to celebrate.
Instead, it should be an occasion for reflection on the role of ideological groupthink among economists, including Bernanke, in contributing to the global economic and financial crisis.
The decision to nominate Bernanke is sensible on two counts. First, the United States and global economies remain mired in recession. Though the crisis may be over in the sense that outright collapse has been avoided, the economy remains vulnerable. As such, it makes sense not to risk a shock to confidence that could trigger a renewed downturn.
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