If you want to understand geology, study earthquakes. If you want to understand the economy, study the Depression.

The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again.

House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals.

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.

The best approach here, if at all possible, is to use supervisory and regulatory methods to restrain undue risk-taking and to make sure the system is resilient in case an asset-price bubble bursts in the future.

The central bank needs to be able to make policy without short term political concerns.

The American people are among the most productive in the world. We have the best technologies. We have - great universities. We have entrepreneurs.