Roubini Questions for Janet Yellen

Questions Senators were too naive to ask Yellen: 1. You wrote about optimal control (OC) ie allow inflation above target. Do you support OC?
— Nouriel Roubini (@Nouriel) November 15, 2013

2. You wrote a few times that inflation may have to go above target for a while to reduce labor slack. Do you support this optimal control?
— Nouriel Roubini (@Nouriel) November 15, 2013

3. Do you agree with Governor Stein that macro-pru will not be sufficient to control bubbles? Would you raise rates sooner to prick bubbles?
— Nouriel Roubini (@Nouriel) November 15, 2013

4. While you say no bubble today what is the risk that slow QE exit & policy rate normalization (4 yrs) will cause bubbles down the line?
— Nouriel Roubini (@Nouriel) November 15, 2013

5 . If the current approach to too-big-to-fail will not work would you down the line support breaking up big banks to deal with TBTF?
— Nouriel Roubini (@Nouriel) November 15, 2013

6. What will be Fed losses of paying interest on excess reserves of $3 trillion+ when you will normalize policy rates to 4%? 120bn a year?
— Nouriel Roubini (@Nouriel) November 15, 2013

These naive senators were not prepped well enough by their staff and failed to ask a few relevant important questions to Yellen
— Nouriel Roubini (@Nouriel) November 15, 2013

7. Fed criteria for taper is a cumulative improvement in labor mkt outlook. Aren't we there now given fall in Un Rate & 180K jobs per month?
— Nouriel Roubini (@Nouriel) November 15, 2013

8. After ZIRP, QE, CE, FG growth is still weak & mon pol ineffective? Wouldn't a better policy mix be more fiscal stimulus & less monetary?
— Nouriel Roubini (@Nouriel) November 15, 2013

9. What is risk of fiscal dominance as Fed is effectively monetizing public debt? Should mon pol be used to nudge congress to cut deficit?
— Nouriel Roubini (@Nouriel) November 15, 2013

10. What is risk of debt dominance, ie Fed unable to raise rates fast enough as high public/household debt requires low debt service ratio?

— Nouriel Roubini (@Nouriel) November 15, 2013

I tweeted 10 basic and key questions that the Senators failed to ask Janet Yellen at her confirmation hearings. Who is prepping these folks?
— Nouriel Roubini (@Nouriel) November 15, 2013

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Who, indeed? To coin an old Truman phrase, 

these guys don't know any more about monetary policy 

than a pig knows about Sunday.