Submitted by Gregory Fossedal, Mar 18, 2008 21:33

Mr. Grant, what a pleasure to see your byline.

Watching the recent turmoil, I'm reminded of something George Champion (your chapter on him is excellent) suggested to me and I'm sure others --

Namely, the Fed has an insuperable conflict of interest. It is supposed to regulate the banking system and maintain the soundness of credit institutions. It is also in charge of monetary policy, which ought to aim at price stability.

The Fed, Champion argued, should be split into two institutions, one for each of the tasks. Until that happens, all of us will have to write about one of these crises every few years.

With respect,
Gregory Fossedal

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