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Richard Harris Clarida (born May 18, 1957) is an American
economist An economist is a professional and practitioner in the social science Social science is the branch A branch ( or , ) or tree branch (sometimes referred to in botany Botany, also called , plant biology or phytology, is the s ...

economist
and
Vice Chair of the Federal Reserve The vice chair of the Board of Governors of the Federal Reserve System is the deputy head of the Federal Reserve, the Central bank, central banking system of the United States. The vice chair shall preside at meetings of the Federal Reserve Boar ...
, pending resignation due to the 2019/20 Federal Reserve Trading Scandal involving three officials to date. He is the C. Lowell Harriss Professor of Economics and International Affairs at
Columbia University Columbia University (also known as Columbia, and officially as Columbia University in the City of New York) is a Private university, private Ivy League research university in New York City. Established in 1754 as King's College on the grounds of ...

Columbia University
and, from 2006 until September 2018, Global Strategic Advisor for
PIMCO PIMCO (Pacific Investment Management Company, LLC) is an American investment management Investment management is the professional asset management Asset management refers to a systematic approach to the governance and realization of value f ...
. He is notable for his contributions to
dynamic stochastic general equilibrium Dynamic stochastic general equilibrium modeling (abbreviated as DSGE, or DGE, or sometimes SDGE) is a macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performan ...
theory and international monetary economics. He is a former
Assistant Secretary of the Treasury for Economic Policy The Assistant Secretary of the Treasury for Economic Policy is the head of the Office of Economic Policy in the United States Department of the Treasury. The position is currently occupied by Michael Faulkender. According to U.S. statute, there are ...
and is a recipient of the Treasury Medal.


Education

Clarida received his
Bachelor of Science A Bachelor of Science (BS, BSc, SB, or ScB; from the Latin Latin (, or , ) is a classical language A classical language is a language A language is a structured system of communication Communication (from Latin ''communicare' ...
degree in economics from the
University of Illinois The University of Illinois Urbana-Champaign (U of I, Illinois, or colloquially the University of Illinois or UIUC) is a public university, public land-grant university, land-grant research university in Illinois in the twin cities of Champaign ...
with Bronze Tablet honors, and his
Master of Arts A Master of Arts ( la, Magister Artium or ''Artium Magister''; abbreviated MA or AM) is the holder of a master's degree A master's degree (from Latin ) is an academic degree awarded by University, universities or colleges upon completion of a ...
and
Doctor of Philosophy A Doctor of Philosophy (PhD, Ph.D., or DPhil; Latin Latin (, or , ) is a classical language belonging to the Italic branch of the Indo-European languages. Latin was originally spoken in the area around Rome, known as Latium. Throug ...
degrees from
Harvard University Harvard University is a private Private or privates may refer to: Music * "In Private "In Private" was the third single in a row to be a charting success for United Kingdom, British singer Dusty Springfield, after an absence of nearly t ...

Harvard University
. In October 2018 he received the College of Liberal Arts and Sciences Alumni Achievement Award from the University of Illinois.


Academic career and research contributions

Since 1988, Clarida has taught in the economics and international affairs programs at Columbia University, where he is the C. Lowell Harriss Professor of Economics. From 1997 until 2001, Clarida served as chairman of the Department of Economics at Columbia University. Earlier in his career, he had been a member of the Cowles Foundation at
Yale University Yale University is a private Private or privates may refer to: Music * "In Private "In Private" was the third single in a row to be a charting success for United Kingdom, British singer Dusty Springfield, after an absence of nearly two ...
. Clarida's research centers on
dynamic stochastic general equilibrium Dynamic stochastic general equilibrium modeling (abbreviated as DSGE, or DGE, or sometimes SDGE) is a macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performan ...
modeling, a branch of
applied general equilibrium In mathematical economics, applied general equilibrium (AGE) models were pioneered by Herbert Scarf at Yale University in 1967, in two papers, and a follow-up book with Terje Hansen in 1973, with the aim of empirically estimating the Arrow–Debreu ...
theory that is influential in contemporary macroeconomics and optimal monetary policy, especially through the lens of time-series analysis. His studies with Jordi Galí and Mark Gertler suggest that monetary policy in many countries today resembles a forward-looking
Taylor rule The Taylor rule is one kind of targeting monetary policy used by central banks. The Taylor rule was proposed by the American economist John B. Taylor, economic adviser in the presidential administrations of Gerald Ford and George H. W. Bush, in 1 ...
, whereas the policy makers of the 1970s failed to follow such a forward-looking Taylor rule. Clarida has published numerous frequently cited articles in leading academic journals on monetary policy, exchange rates, interest rates, and international capital flows. He is frequently invited to present his research to the world's leading central banks, including the
Federal Reserve The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central bank A central bank, reserve bank, or monetary authority is an institution that manages the and of a or formal monetary union, and ove ...

Federal Reserve
, the
ECB
ECB
, the
Bank of England The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the Kingdom of England, English Government's banker, and still one of the bankers for t ...

Bank of England
, and the
Bank of Japan A bank is a financial institution Financial institutions, otherwise known as banking institutions, are corporation A corporation is an organization—usually a group of people or a company—authorized by the State (polity), stat ...

Bank of Japan
. He has written on the monetary policy implications of the low-inflation period created by the 2008 financial crisis. He also introduced in 2014 the concept of a "new neutral" for American monetary policy which predicted a substantial decline in r*, the interest rate consistent with full employment and stable inflation. Whereas before the crisis r* was thought to be above 4 percent, Clarida wrote in 2014 that r* was now closer to 2 percent than to 4 percent.


Other professional achievements

Clarida served as the Assistant Secretary of the United States Treasury for Economic Policy, a position that required confirmation by the
United States Senate The United States Senate is the upper chamber of the United States Congress The United States Congress is the legislature A legislature is an deliberative assembly, assembly with the authority to make laws for a Polity, politi ...
. In that position, he served as chief economic advisor to two Treasury Secretaries, Paul O'Neill and
John W. Snow
John W. Snow
, advising them on economic policy issues, including U.S. and global economic prospects, international capital flows, corporate governance, and the maturity structure of U.S. debt. In May 2003, Snow awarded Clarida the Treasury Medal "in recognition of his outstanding service". Clarida has served as a consultant to several prominent financial firms, including the Global Foreign Exchange Group at
Credit Suisse First Boston :''This article is primarily about the former investment banking, capital markets and financial services division of Credit Suisse prior to the 2006 re-branding exercise. For the newly reorganized investment banking division of Credit Suisse, Credi ...
and Grossman Asset Management. From 2006 to 2018, he was Global Strategic Advisor with PIMCO and in 2015 was named managing director with the firm. He is a member of the Council on Foreign Relations. Clarida was director of the NBER Project on and editor of ''G7 Current Account Imbalances: Sustainability and Adjustment''. From 2004 to 2018 he served as co-editor of the ''NBER International Macroeconomics Annual''.


Federal Reserve

On April 24, 2018, Clarida was officially nominated by President
Donald Trump Donald John Trump (born June 14, 1946) is an American politician A politician is a person active in party politics A political party is an organization that coordinates candidate A candidate, or nominee, is the prospective reci ...

Donald Trump
to succeed Stanley Fischer as
Vice Chair of the Federal Reserve The vice chair of the Board of Governors of the Federal Reserve System is the deputy head of the Federal Reserve, the Central bank, central banking system of the United States. The vice chair shall preside at meetings of the Federal Reserve Boar ...
. On August 28, 2018, the United States Senate voted to confirm Clarida by a margin of 69–26. He assumed office on September 17, 2018.


Controversial trading

On February 27, 2020, one day before Fed Chair
Jerome Powell Jerome Hayden Powell (born February 4, 1953), sometimes known as Jay Powell, is an American economic advisor, lawyer, and former investment banker serving as the 16th chair of the Federal Reserve. He was nominated to the Federal Reserve Board of ...
issued a statement regarding the economic response to the
COVID-19 pandemic The COVID-19 pandemic is an ongoing global pandemic A pandemic (from , , "all" and , , "local people" the 'crowd') is an of an that has spread across a large region, for instance multiple or worldwide, affecting a substantial numbe ...

COVID-19 pandemic
, Clarida traded between $1 million and $5 million out of a
bond fund A bond fund or debt fund is a fund that invests in bonds, or other debt securities A security is a tradable financial asset A financial asset is a non-physical asset In financial accounting Financial accounting is the field of account ...
into the
equity fund A stock fund, or equity fund, is a investment scheme, fund that invests in stocks, also called Security_(finance)#Equity , equity securities. Stock funds can be contrasted with bond funds and money funds. Fund assets are typically mainly in stoc ...
PIMCO StocksPlus. A Fed spokesman responded to Reuters: "Vice Chair Clarida's financial disclosure for 2020 shows transactions that represent a pre-planned rebalancing to his accounts, similar to a rebalancing he did and reported in April 2019." On October 4, 2021, Senator
Elizabeth Warren Elizabeth Ann Warren (née __NOTOC__ A birth name is the name of the person given upon their birth. The term may be applied to the surname In some cultures, a surname, family name, or last name is the portion of one's personal name ...
requested the
Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is a large independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929 The Wall Street Crash of 1929, also known as the Great Cras ...
investigate whether Clarida violated insider trading rules and to look into his "ethically questionable transactions". When a corrected disclosure revealed that Clarida had sold the same stock fund just three days before his purchase, ''The New York Times'' wrote: "the rapid move out of stocks and then back in makes it look less like a planned, long-term financial maneuver and more like a response to market conditions." On January 10, 2022, Clarida announced he would resign his post on January 14, two weeks before the expiration of his term. The announcement from Clarida did not mention the alleged controversial trading activities.


Personal life

Clarida grew up in
Herrin, Illinois Herrin is a city in Williamson County, Illinois, Williamson County, Illinois, United States. The population was 12,352 at the 2020 census. The city is part of the Marion, Illinois, Marion-Herrin Micropolitan Area and is a part of the Carbondale, Il ...
. In 1989 he married Polly Morgan Barry. In 2016 he released ''Time No Changes'', a 13-track album featuring his own music, lyrics and vocals.


References

, - , - {{DEFAULTSORT:Clarida, Richard Harris 1957 births
Living people Related categories * :Year of birth missing (living people) / :Year of birth unknown * :Date of birth missing (living people) / :Date of birth unknown * :Place of birth missing (living people) / :Place of birth unknown * :Year of death mi ...
21st-century American economists Columbia University faculty George W. Bush administration personnel
Harvard University alumni Alumni of Harvard University. {{CatAutoTOC Alumni by university or college in Massachusetts Harvard University people, Alumni ...
Macroeconomists People from Herrin, Illinois Trump administration personnel United States Assistant Secretaries of the Treasury University of Illinois at Urbana–Champaign alumni Vice Chairs of the Federal Reserve