Welfare Economics
Paul Krugman on Paul Ryan

No, I Have No Insight into What's Going On...

Ed Luce:

Politics & Foreign policy - US economic adviser Romer steps down: Christina Romer, head of the Council of Economic Advisers, on Thursday became the second prominent member of Barack Obama’s economic team to resign following last week’s departure of Peter Orszag, the White House budget director. Ms Romer, who will return to her job teaching economics at the University of California at Berkeley, said in a statement on Thursday evening that it had been “the honour of a lifetime” to serve Mr Obama.

The departing CEA chief is strongly rumoured to be under consideration to replace Janet Yellen as the next head of the San Francisco Federal Reserve. Ms Yellen was recently nominated to be vice-chairman of the US Federal Reserve in Washington. Ms Romer, who also came to prominence as a frequent defender of the Obama administration on Sunday morning TV shows, cited family reasons for her decision. She was a key part of the daily economic briefing that Mr Obama received, which also includes Tim Geithner, the Treasury secretary, and Lawrence Summers, director of the National Economic Council.

“Christy Romer has provided extraordinary service to me and our country during a time of economic crisis and recovery,” Mr Obama said in a statement. “While Christy’s family commitments require that she return home, I’m gratified that she will continue to offer her insights and advice as a member of my Economic Recovery Advisory Board.”

Ms Romer’s departure is likely to add to the sense of flux in Mr Obama’s economic team, which is spearheaded by Mr Summers, who is by far the most experienced economic figure in the administration. Aides to Mr Summers say he has no plans to change jobs. In a statement issued to the Financial Times, Mr Summers said: “Christy has been an extraordinary friend and colleague at the White House. From jobs and recovery to health care and financial reform, she has been central to everything the Administration has done in the economic area. Our loss is the economics profession’s gain. I will look forward to drawing on her advice.”