LBJ School Professors James Galbraith and Robert Auerbach Inform Discussion and Decision to Audit Federal Reserve
AUSTIN, Texas-- May 12, 2010-- Before the Senate voted 96-0 to perform a one-time audit of the Federal Reserve Bank on Monday, LBJ School Professors James Galbraith and Robert Auerbach were lending their voices and expertise to the issue.
Galbraith and Auerbach, along with Dean Baker, authored a letter on May 5 to Larry Summers, Director of the White House's National Economic Council for President Barack Obama, calling for the White House to “reconsider the administration’s position of apocalyptic opposition to the bill in Congress that would subject Federal Reserve operations to an audit.”
According to the Huffington Post, lawmakers struck a deal with the Fed to allow the bill to see a vote on the Senate floor in a “compromised version,” which Galbraith and Auerbach are still calling a “great victory.”
Some critics argue that the Federal Reserve got to the Senate at the last minute, altering the bill to be ineffective. However, Galbraith and Auerbach disagree saying, “This kind of transparency is needed from the country’s most powerful peacetime bureaucracy. It enhances the policies of the Fed while secrecy impairs public confidence in their actions, especially in times of financial crisis.”
For more information:
The Huffington Post - Fed Audit Compromise Amendment Praised By Fed Critics - May 7, 2010
FiredogLake.com - Galbraith, Baker & Auerbach: White House Should "Reconsider Apocalyptic Opposition" to Audit the Fed - May 5, 2010