By all accounts, Stanley Fischer has done a marvelous job running Israel’s central bank since 2005 and helping navigate the global financial crisis. But now, at age 69, he’s stepping down, and some observers like David Warsh think Fischer might make a good 2014 replacement for his former student, Ben Bernanke, over at the Fed:
The crisis veteran is an obvious choice for the Fed job. Not only must the enormous sums of money the Fed has spent buying assets in its quantitative easing campaigns be withdrawn without touching off higher rates of inflation. The Chinese economy also is a source of concern, after its breakneck 35-year boom.
In addition to Fischer’s expressed wish to see more of his children and grandchildren, all in the United States, he seems to have a continuing taste for power. He bid on a five-year term as managing director of the IMF in 2011, but was edged out by France’s Christine Lagarde.
What makes this speculation particularly tantalizing is the theory that Fischer is a believer in NGDP level targeting, and could help hurry along the US central bank in a direction it may already be headed. Washington missed a chance to steal Mark Carney from Canada; Fischer looks at first glance to be an intriguing plan B.