http://www.bankofengland.co.uk/publications/annualreport/2007/courtofdirectors2007.pdf

I’ve never seen a less qualified group of people. It smacks of Jobs for the Boys. Most don’t even have Economics PhD’s, let alone relevant experience!!

http://www.federalreserve.gov/aboutthefed/bios/board/warsh.htm

Appointed in 2006, apparently because he married into the family of a big Bush contributor.

Chief Liaison to the regulatory agencies.

Wikipedia tells us that his background on wall street was a great help during the financial upheaval of 2007/2008. B.S. He might have been able to explain to them the fine legal points of bailing out bear stearns (or not as it doesn’t look like he worked as an attorney at all). Explain to them how cds and cdo and siv and all other derivative garbage worked? One wonders… he studied policy with a little econ as an undergrad, then law. Then at the age of 35 he’s appointed to one of the most important positions in the country. That position might be window dressing; that position might just be a nice way for Bushco to influence regulation.

Ech.

If you mean the decision-making board should include business people generally, you have the Australian model – not obviously better than the others. If you mean that board members should have financial markets experience, then look out for conflicts of interest for all those current or ex-investment bankers, not to mention regulatory capture.

Where the “real-world” experience can come from is actually from working in a (good) national central bank for most of your career. That way you will see the markets with less risk of being captured, not to mention develop decades of experience in economy-watching of the exact kind central banks need and use.

There’s an enormous difference between an academic, and someone who did a PhD at the beginning of their career, or soon after starting work, but has been at the central bank all their life.

This is a problem that totally pervades all aspects of our society in all industries and businesses. Hiring people that you know, hiring people with certain merits, hiring people that only think like you. It’s rasiing mediocrity to the point where it’s thought of as excellence by the idiots in charge. I’m not exagerating when I say it will be the death of our society. Talented people without connections not getting positions they deserve hurts us all.

My suggestion is that a few economic historians would be valuable, who don’t have degrees in economics. Maybe also some experts on creditworthiness in bank lending.

Often the qualitative insights of non-economists are more valuable than the guys who trust the macroeconomic models.