Some of the world's top investors and policymakers gathered a ranch in LaRue, Texas, on Wednesday for the annual Barefoot Economic Summit, in hopes of tackling the macro forces that are moving the markets, including everything from monetary policy to the woman who is nominated to head the Federal Reserve: Janet Yellen
Prominent Harvard professor Niall Ferguson, author of "The Great Degeneration: How Institutions Decay and Economies Die" shared his insight in an interview with CNBC.
Yellen as Fed chair
As to how Janet Yellen would differ from Ben Bernanke, Ferguson said she is "theoretically on the same page as Bernanke, but covertly, she would really like to have a nominal GDP target—a new level of policy innovation on the monetary side."
(Read more: More yelling over Yellen? The coming battle royale)
But the problem remains finding a majority support within the FOMC.
"Can she get the members on board? That's a big question mark. And I doubt that even a handful of FOMC members share her radicalism."
Down the road, Ferguson thinks we will have lower rates for longer than if Larry Summers got the job of Fed chief.
"But when the adjustment comes, in 2016, 2017, it will be very sudden and sharp. One of the sharpest adjustments in short rates we've ever encountered," he said.