Wow. There goes any hope for monetary policy... The article doesn't say how Republicans alone could block the appointment w/ just 41 senators in the entire senate. How'd they get a majority on the Senate Banking Committee???
I wonder if now some wheels are starting to turn at the White House. If, now, they might start to reconsider how smart it was to leave Monetary Policy to a bunch of partisan-Republicans when they could have made these appointments 15 months ago, and whether it was smart to re-nominate a Republican inflation hawk in the midst of a liquidity trap. Now, of course, apparently the Republicans can easily block any dovish appointment with just 41 senators... I wonder if they can even grasp the importance of this.
If I were in the White House, of course, I would go on the offensive and accuse Republicans of sabotaging the economy... But that's just me.
UPDATE: Now it's come out that just one senator can send a nomination back to the White House. If I were there, I'd resubmit Diamond's application. (thanks to commenter sraffa.)
In Defense of the Conventional Wisdom
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