According to National Journal Christina Romer has decided to call it quits.
“She has been frustrated,” a source with insight into the WH economics team said. “She doesn’t feel that she has a direct line to the president. She would be giving different advice than Larry Summers [director of the National Economic Council], who does have a direct line to the president.”
“She is ostensibly the chief economic adviser, but she doesn’t seem to be playing that role,” the source said. The WH has been pounded for its faulty forecast that unemployment would not top 8% after its economic stimulus proposal passed.
Prior to joining the Obama regime Romer and her husband David published a paper espousing that if stimulus is necessary during a recession, it is much better to do it with monetary policy rather than fiscal because fiscal stimulus is slow to get through the pipeline and it tends to be ineffective. The 847 billion dollar failed stimulus has provided Romer with a steaming pile of evidence to support her premise.
I don’t think Ms. Romer is leaving out of frustration; I suspect she has a rich book deal in her future along with a slew of scholarly peer reviewed papers examing the anatomy of this failed recovery.