They take the form of three answers to questions in a recent Businessweek interview:
Who would your ideal Fed chairman be?
Hayek would be good, but he’s deceased.
Nondead Fed chairman.
Friedman would probably be pretty good, too, and he’s not an Austrian, but he would be better than what we have.
Yeah. Let’s just go with dead, because then you probably really wouldn’t have much of a functioning Federal Reserve.
Just to be clear: The reason why Paul’s answer of Friedman is also a reason not to want him ever appointing a Fed Chair as President is because Paul chose him since he’s dead. If Friedman were alive, Paul would not like him as chairman, since Friedman wouldn’t fall into the “low interest rates equals easy money” fallacy, and would probably want the Fed to do more than they currently are. Friedman would probably make a good Fed Chairman.
HT: Brad Delong