The biography of Janet Loiuse Yellen

American economist Janet Louise Yellen was born in Brooklyn, New York City, on August 13, 1946. She is the daughter of doctor Julius Yellen and Anna, and although she was born in the United States, she is Jewish. Janet graduated from Fort Hamilton High School in Bay Ridge. Janet Louise earned her degree in economics from Brown University’s Pembroke College in 1967. Although she had intended to major in philosophy, Professor Grossman Herschel and George Borts’ influence convinced her to switch to economics instead, knowing that it would be more advantageous for her in the long run. In 1971, Yale University awarded Yellen a PhD in economics. The dissertation she wrote, that was supervised by Nobel laureates Joseph Stiglitz and James Tobin they termed her as the most memorable and the brightest student in that class. Although that year Yale University has over twenty-four Ph.D. graduates in economics, very few women graduated, and Janet was the only one. George Akerlof is the husband to Yellen, and he happens to be a Nobel Prize winner in the field of economist and also a professor emeritus at the University of California Berkeley and a university professor at George Town University. Their adult son Robert Akerlof, maybe through the influence of the parents is an economist and lectures at the University of Warwick. This adult son who is independent allows her mother with ample time to concentrate on her job.

Currently, she is the chairperson of the Board of Governors of the Federal Reserve System in the United States of America. President Obama voted Yellen to serve after Ben Bernanke who held that position before her (Fletcher, 2014). The US Senate confirmed her nomination on the 6th of January 2014 and was sworn in a month later in that enviable position. The last term, from 2010 to 2014, Yellen served as the vice chairperson of the Federal Reserve. In previous years, she also served as the CEO and president of the Federal Reserve Bank situated in San Francisco. Under the presidency of Bill Clinton, she served as the chair of the White House Economic Advisers Council. Additionally, she has also played a significant part as a business professor at the University of California Berkeley. Outstandingly, she is the first woman to have the opportunity to serve as the president and CEO of the Federal Reserve systems. Throughout her life, she has attained many great achievement and awards that make her stand as a pillar and an icon of the strength of a woman. Also, her life is a reflection of what determination, integrity, and diligence can accord a person regardless of their race, gender, or upbringing.

The actions that a person undertakes are based on a belief system or professional philosophy upheld by a person. Since Janet is more concerned about issues about micro-economics like unemployment, she is less likely to suggest increased interest rates to deal with the economic situation in the US (Alogoskoufis 2016). Such is likely to occur when increasing the interest rates is the only possible option to salvage the financial condition in the US. Additionally, Yellen proposes the use of the monetary policy as opposed to the business cycle to ensure economic stability (Yellen 2014). As a Keynesian and an advocate of the modern version of Philips’s curve, she argues that there is an inverse proportionality between inflation and unemployment. In fact, this suggestion of modern Philips curve was her statement during her nomination as vice chairperson in 2010. She categorically stated this Philip curve model that relates the inflation movement to the degree of slack in the economic activities has both empirical and robust theoretical support. Unlike the conventional approach of things, Yellen in 1995 stated that sometimes it is a humane and wise policy to allow the inflation to keep rising as long as it will result in increased output. Apparently, she believes that every attempt to minimize the inflation may lead to a reduction in the GDP which works against the country’s economic goals. It is against such background that many believe that Yellen is a dove.

Throughout her career as an economist, Janet Yellen has received various awards and recognition. In 1997, Yellen received Wilbur Cross Medal from Yale University, an honorary degree of Humane Letters from Bard College in 2000 and Honorary Degree of Laws fro, Brown in 1998. In 2015, something amazing happened as she received her Honorary Doctorate from London School of Economics as this placed her husband and her as the first couple to receive an Honorary Doctorate from that institution. The National Association of Business Economics gave her Adam Smith Award is 2010. Amazingly, in 2012, the American Economic Association elected her as a Distinguished Fellow because of her professionalism and competence and her input in the field of American economics. Notably, Janet has been recognized to be among the most influential in the area of economics and women in leadership not only in the US but also globally. In 2014, Forbes recognized her as the second most powerful woman globally and the first American in that list. In the business world, she is a distinguished economist and competent policymaker particularly because of her influence the last over seven years playing a central role in the American economy.

Despite Janet’s knowledge and understanding of matters surrounding economy, she is a discrete and professional woman who weighs things considerably before sharing them publicly, something that would be regarded as meekness. For instance, in November 2016, she reserved her comment and prediction regarding how Trump’s election would affect the economy despite having many papers suggesting so. Since she is secure in the person she is, she does not seek to legitimize her authority by speaking much but keeps within her circles. Despite the economic instability during that election time, the Federal Reserve raised the interest rates a quarter point despite the decline in inflation. Such response shows the strength of having an economic philosophy that is stable and considerate as Janet’s. This woman’s inner strength has helped her weather the difficulties and challenges that bombard her in the current position given that there is so much pressure that would be mounting her way. Particularly, when she takes a road that is less traveled by many economics, some consider her as complacent, but she remained calm and focused not allowing her philosophy or beliefs to be changed. It is noteworthy that her integrity, focus, and virtue have been key factors that have seen her weather many storms in the course of her education and career to become an influential woman in the US business world.

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References

Alogoskoufis, G. (2016). Unemployment persistence, inflation and monetary policy in a dynamic stochastic model of the Phillips curve (No. 201604).

Fletcher, M. A. (2014). Janet Yellen Takes Charge of The Federal Reserve. Women of Color Magazine, 13(1), 11-12.

Kearney, M. L. (2017). Whither Women Graduates in the Knowledge Economy?. In The Changing Role of Women in Higher Education (pp. 3-30). Springer International Publishing.

Yellen, J. L. (2014). Monetary policy and financial stability. International Monetary Fund.