Fed Economist: Bloggers are Stupid

Bruce Krasting's picture

A Richmond Va. Federal Reserve Economist, Kartik Athreya wrote a paper
recently that trashes economic bloggers. Mr. Artheya has a PhD from the
University of Iowa. I’m not so sure a few years in corn land gives him
the right to take cheap shots at the new media. I am absolutely
convinced that this type of thinking should not be expressed by Fed
officials. It proves to me that the Fed is an elitist organization that
is out of touch with America in 2010. The full report from Athreya is here.
Some of the more offending comments:

Writers
who have not taken a year of PhD coursework in a decent economics
department (and passed their PhD qualifying exams), cannot meaningfully
advance the discussion on economic policy.

So we have to go
to school for two years to be able to write about the issues of the day.
That would exclude me and a lot of others. The fact that I worked on
Walls street for 30 years does not qualify me to say a word.

The
response of the untrained to the crisis has been even more startling. I
listen to Elizabeth Warren on the radio fearlessly speculating about the
nature of credit market dysfunction, and so on.

Taking on
Elizabeth Warren is a big mistake Mr. Arthreya. You will regret this
choice of words.

The real issue is that there is extremely low likelihood that the
speculations of the untrained, on a topic almost pathologically riddled
by dynamic considerations and feedback effects, will offer anything new.
Moreover, there is a substantial likelihood that it will instead offer
something incoherent or misleading.

Everything that
comes from the Federal Reserve is incoherent and misleading.

The
sophomoric musings of auto-didact or non-didact bloggers or writers is
instructive. For those who want to really know what the best that
economics has to offer is, you must look here.

The only
people you should listen to is Federal Reserve economists? I take a
different view. The last people you should trust in this matter is FRB
economists.

The
general public are simply being had by the bulk of the economic blogging
crowd.

The general public is being had. But
not by the bloggers. They are being had by the folks who make the
choices for us at the FRB.

The
views expressed are my own, and do not necessarily represent those of
the Federal Reserve Bank of Richmond, or Federal Reserve System.

Actually
the views expressed are a perfect representation of the mind set at the
FRB. Narrow minded, elitist and just plain wrong.

I would suggest that Mr. Arthreya do some additional research. He should
look up the word “hubris” (extreme haughtiness or arrogance).
After he understands that concept he should write an apology, that or
he should resign from the FRB.