Slate’s Matthew Yglesias provides a salutary warning to Fed Chairman Ben Bernanke: don’t listen to pro athletes like Jayson Werth when setting macroeconomic policy.
I had a couple reactions when reading this article. 1) Werth signed for more than $100 million? Wow, tough one for the Nationals, in hindsight. I mean he’s good, but nine-figure-salary good? 2) Yglesias is here presumably writing about the perception of bias, not the actual potential for bias, given that the original report makes it clear that Bernanke was not interested in hearing the outfielder’s thoughts on quantitative easing.
It’s interesting, all the same, to think through the implications of macro-economic policy for any given group of financial actors. Perhaps the real lesson here is for athletes signing long term deals: be sure to index your contracts to inflation (and you might want to get a currency hedge thrown in as well.)
(h/t Matt Gravelle, whose participation in this blog we eagerly await.)