The Fed nominee doesn’t seem to have won over several on-the-fence senators during yesterday’s hearing. One criticism that has been lodged against Judy Shelton, though, is off the mark. Supposedly her observation that federal deposit insurance for banks has the downside of encouraging banks to take risks makes her a dangerous radical. As George Selgin points out in this thread, that’s a mainstream view. I’d add that it’s clearly correct.

Ramesh Ponnuru is a senior editor for National Review , a columnist for Bloomberg Opinion, a visiting fellow at the American Enterprise Institute, and a senior fellow at the National Review Institute. @rameshponnuru