2004). The new Fed chairman would necessarily have to monitor inflationary pressures to prevent spikes in the cost of living. On this note the new Chairman would move from a policy of targeting core inflation which excludes the so called volatile food and energy prices, and focus on the headline rate which includes these components. Additionally the Consumer Price Index calculation would change to reduce the weight of housing in the index, "which makes up 41% of the typical consumer's budget" (Mankiw, G. 2004). More weight would be placed on those items which have steadily increased in price far above even the headline rate over the last decade: energy, food, health care, and education. These steps would help stabilize the dollar as a store of value for the consumer and investor. The last selection criterion for the new chairman will be their belief in the purpose and efficacy of the prior chairman's avocation of several "bailout" measures designed to prevent against systemic risk in the system. The discussion of this topic and additional policy measures will follow later in this exposition.

Appointee: Chair of the Council of Economic Advisors and Fiscal Policy

The Council of Economic Advisers, an agency within the Executive Office of the President, is charged with offering the President objective economic advice on the formulation of both domestic and international economic policy" (White House.gov. N.D). The choice of the Chair of the Council provides considerable insight into the economic policies the administration will follow. In choosing the Chair there will be four distinct criterions: tax policy, trade policy, regulatory policy, and government spending.

On tax policy the administration strongly favors a policy of lower marginal tax rates on individual and business:...

The lower tax rates will accompany a reduction in deductions and loopholes which will considerably broaden the taxable base. The reduction in tax rates foster an environment in which savings and investment flourish, and capital stock requisite for producing a long-run growth cycle is created. "Economists agree that a large capital stock is a key ingredient for prosperity, as it expands our productive capacity and raises worker productivity, which in turn increases wages and consumer purchasing power" (Cooley, T. & Ohanian, L. December 8, 2010).
On trade policy the administration strongly favors unfettered free trade between nations with reductions in tariffs, and the creation of compacts expanding access to global markets. "For more than two centuries economists have steadfastly promoted free trade among nations as the best trade policy" (Blinder, a.N.D.). The new administration will push for the immediate fast tracking of any trade pacts still on hold in Congress. Additionally the goal of establishing free trade alliances similar to NAFTA with all of the EU and Asia will be a strong priority.

On regulatory policy the Chair of the Council will need to embrace a policy of sound, logical, but limited regulation on business. The regulatory policy must be designed to ensure that consumers are protected however not impinge on the spirit of American entrepreneurship, risk taking, and profit maximization. Succinctly the administration "seeks more affordable, less intrusive means to achieve the same ends -- giving careful consideration to benefits and costs" (Obama, B. January 18, 2011).

The fourth piece of the economic policy puzzle is the administration's defense of a strong dollar policy. A weak and falling dollar robs the consumer