2017-02-15 —

She takes on the research staffs of elite, Ph.D. economists -- "the MIT mafia" -- who are married to their mathematical models and focused on publishing in peer-reviewed journals. She exposes the institutional groupthink -- "groupstink," she calls it -- and disdain for dissenting views. And she reserves her most strident criticism for those at the very top.


She came armed with an M.B.A., not a Ph.D., which made her suspect in the eyes of staff economists as she gradually worked her way up to Class I Clearance, with access to all policy-related material and briefings.

In her columns, DiMartino Booth had warned about lax mortgage-lending standards, a housing bubble and escalating systemic risk. Once ensconced at the Fed, she was left to wonder why so many "highly educated and well-paid economists" were "oblivious as the worst financial crisis since the Great Depression was about to break over their heads." (One of the main reasons is the Fed's reliance on econometric models that don't include anything related to the financial system, such as debt or credit.)''

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