Bernanke Archive

April 10 2006 post

[Skip to the end] Worth a quick look at how I saw it in April 2006. Turns out I was right about demand weaking from that date, but wrong about the Fed reaction function. I thought they’d follow the mainstream view and respond to elevating inflation expectations. Instead, Bernanke and Kohn subsequently ...Read More


[Skip to the end] The big concern is managing inflation expectation not realizing that inflation is not a function of inflation expectations: The Fed’s Exit Strategy By Ben Bernanke July 21 (WSJ) — The depth and breadth of the global recession has required a highly accommodative monetary policy. Since the onset of ...Read More


[Skip to the end] Karim writes: Bernanke Testimony (All quotes in italics) We are likely to see further sizable job losses and increased unemployment in coming months Recent data also suggest that the pace of contraction may be slowing, and they include some tentative signs that final demand, especially demand by households, ...Read More

Re: Bernanke on 60 Minutes

[Skip to the end] (email exchange) Thanks! Got it on my blog yesterday and added it to the attached draft in progress as well. I cut his response a bit short to save the point that he missed the point ‘fundamentally’ even though he got this operational point right. While in the ...Read More

Bernanke March 10 speech

[Skip to the end] Financial Reform to Address Systemic Risk Bernanke: In my view, however, it is impossible to understand this crisis without reference to the global imbalances in trade and capital flows that began in the latter half of the 1990s. In the simplest terms, these imbalances reflected a chronic lack ...Read More

Re: Bernanke missing the point on repo

[Skip to the end] (email exchange) The Fed already has thousands of designated agents, the banks, to lend and take in deposits. If I were in charge I’d eliminate the cap on FDIC insured bank deposits and legislate any insured pension funds keep their excess cash in insured deposits. And borrowers can ...Read More

Bernanke Testimony March 3

[Skip to the end] Let your Washington contacts know I’m available to help them formulate their questions! SENATE COMMITTEE ON THE BUDGET HOLDS A HEARING ON ECONOMIC AND BUDGET CHALLENGES MARCH 3, 2009 WITNESSES: FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS CHAIRMAN BEN BERNANKE GREGG: Thank you, Senator Wyden. And thank you, Mr. ...Read More

Excerpt from Bernanke’s testimony

[Skip to the end] BROWN: Specifically, what worked that Roosevelt did? What did we learn from that? What worked that applies to now? BERNANKE: Well, there were two things that he did almost within months of taking office that were extremely important. One was the bank holiday and the subsequent measures, like ...Read More

Bernanke describes jobless recovery

[Skip to the end] Yes, and this is a massive political risk. The deficit is getting large enough to stabilize the economy at high levels of unemployment. With flat employment growth, and 2% productivity growth, real GDP grows at 2% and unemployment stays north of 8%. And the equity markets are in ...Read More

Bernanke speech

[Skip to the end] Chairman Ben S. Bernanke- At the Stamp Lecture, London School of Economics, London, England Jan 13, 2009 The Crisis and Policy Response (Some text omitted) Heightened systemic risks, falling asset values, and tightening credit have in turn taken a heavy toll on business and consumer confidence and precipitated ...Read More