Does the Fed Control Academic Economics?

The economic collapse of the last year has left many wondering why more economists didn't warn of the looming disaster. An article in The Huffington Post suggests that the problem is the increasingly close relationship between academic economists and the Federal Reserve, which is alleged to have made the professors reluctant to question what the Fed was saying. The article notes the many research contracts the Fed awards to professors and the dominance of the Fed on certain editorial boards. "One critical way the Fed exerts control on academic economists is through its relationships with the field's gatekeepers. For instance, at the Journal of Monetary Economics, a must-publish venue for rising economists, more than half of the editorial board members are currently on the Fed payroll -- and the rest have been in the past," the article says. The editor of the journal is quoted calling the idea of control "a silly one" and saying that it had published work critical of the Fed.