I think if he's pushed out it will be a real pity, for several reasons. First, Bernanke really is the most superbly qualified economist out there to deal with this particular sort of crisis. But perhaps more importantly, regulatory uncertainty is not what we need now. Bernanke may be tempted to keep monetary policy loose in order to make the economy look better and save his job. Obama may be tempted to appoint someone insufficiently interested in inflation, both to goose the economy ahead of the midterms, and to ease his debt problem. And whoever it is will be getting his feet wet at exactly the wrong time. There's a strong argument to be made that one of the reasons the Great Depression was so bad in America was that the Fed power vacuum left behind by the death of Benjamin Strong left the central bank too divided to take appropriate action.
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