A professor of business economics from the Indiana University Kelley School of Business has been appointed to the Consumer Financial Protection Bureau’s Academic Research Council. In that role, Michael Baye will advise CFPB leaders.
This bureau is a U.S. government agency that makes sure banks, lenders, and other financial companies are treating consumers fairly.
During this two-year appointment will serve as an advisor, assisting the bureau in its strategic research planning process and research agenda. He will also provide feedback on research methodologies and analysis.
The IU professor and his colleagues on the ARC will not have any formal decision-making roles.
Baye said his academic and practical experience in economics should help the bureau conduct policy analysis to ensure that well-intentioned policies designed to protect consumers do not have adverse, unintended consequences.
“I prefer to solve real-world rather than hypothetical problems, and these experiences are all about the real world. Staff at the FTC (Federal Trade Commission) and CFPB are highly knowledgeable about real-world economic institutions, and it is great to have an opportunity to learn from smart people who deal with real-world problems on a daily basis,” said Baye.
Baye previously served in Washington, D.C. as director of the Bureau of Economics at the FTC.
“When I returned from the FTC, my students really enjoyed learning first-hand about current policy issues. I was also able to share useful information with colleagues,” Baye said. “The value of that knowledge has depreciated over the past decade, and it will be good to have fresh insights to share.
The Consumer Finance Protection Bureau was created in 2010.