I served seven years as the chair of the Princeton economics department where I had responsibility for major policy decisions, such as whether to serve bagels or doughnuts at the department coffee hour.

Both humanity's capacity to innovate and the incentives to innovate are greater today than at any other time in history.

The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.

The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis.

I and others were mistaken early on in saying that the subprime crisis would be contained. The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict.

I don't think that Chinese ownership of U.S. assets is so large as to put our country at risk economically.

The Fed is totally open.