Item! Somewhere in between stifling the urge to can the Supreme Court and accusing reporters of treason, President Bush has tapped the Business School’s resident inflation dove, Frederic Mishkin, to fill a spot on the Fed’s seven-member board of governors.

Why does this matter, besides saving the students who made that music video commiserating with Glenn Hubbard, the B-School dean who didn’t get to be Fed Chairman, the trouble of making another one? Our anonymous tipster opines that Mishkin’s selection signals a fundamental shift in Fed policy: from stomping out inflation before it has a chance to spawn to allowing it to reach tadpole size and continue swimming unmolested. Which is odd, considering the GOP has traditionally been the party of inflation hawks, and doesn’t typically move towards policies already embraced by Canadian and European central banks.

But enough about monetary theory. Bwog is still waiting for its Stiglitz-Bernanke death match!