Volcker's remedy could provide fast, soothing relief

Also, underestimating Paul Volcker is very unwise, a point confirmed by his now very lengthy career. U.S. President Jimmy Carter nominated him to lead the Federal Reserve at a time of exceptionally high inflation, as well as high unemployment. Chairman Volcker broke the back of that great threat through tough disciplined policies of high interest rates and tight money. He killed an inflationary spiral which left unchecked would have killed our economy. Price stability in turn encouraged new job-creating investment.

His more recent posts have included chairing the International Accounting Standards Board and spearheading analysis of scandals associated with the United Nations Oil-for-Food program in Iraq. The former role involved reforming very entrenched attitudes and bureaucracies on a global scale, while the latter meant entering a political minefield with dedicated enemies on both the ideological left and right.

Notable progress was made in reconciliation of differing national accounting practices. The final Oil-for-Food reports absolved U.N. Secretary-General Kofi Annan of personal corruption, while targeting problems in the system and suggesting practical reforms. Volcker received high marks for his performance on both fronts.

Devilish details are central to effective financial reform. Volcker is a master of detail, and also of backstage maneuvers. Make the effort to follow his moves on this matter. Just possibly, he could succeed yet again.

Arthur I. Cyr is the Clausen Distinguished Professor at Carthage College in Wisconsin and author of 'After the Cold War' (NYU Press and Palgrave/Macmillan). He can be reached at acyr@carthage.edu

1|2

PrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email