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China, the Dollar, and Taxes

How George W. Bush plans to approach America's economy in his second term.

11:00 PM, Nov 8, 2004 • By IRWIN M. STELZER
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Finally, Bush will have to decide how to staff his new administration. Early on, he replaced the radical economic team which crafted his recession-averting tax plan with a more staid, less imaginative crowd that first included the egregious Paul O'Neill and then the pedestrian John Snow at the Treasury. He now needs folks with a bit more imagination. Most important will be his selection of a successor to Alan Greenspan as chairman of the Federal Reserve Board. Leading candidates include R. Glenn Hubbard, former chairman of Bush's Council of Economic Advisers, Harvard's Martin Feldstein, and John Taylor, the Stanford economist now on secondment to the Treasury.

Feldstein is widely regarded as the best of that trio, but there is some talk that the president is considering turning the Fed over to Larry Lindsey, a former Fed governor and the Bush economic adviser widely credited with predicting the slow-down that Bush faced early in his administration, and then formulating the plan to fight it.

Irwin M. Stelzer is director of economic policy studies at the Hudson Institute, a columnist for the Sunday Times (London), a contributing editor to The Weekly Standard, and a contributing writer to The Daily Standard.