A collapse in U.S. stock prices certainly would cause a lot of white knuckles on Wall Street. But what effect would it have on the broader U.S. economy? If Wall Street crashes, does Main Street follow? Not necessarily.
Ben BernankeThe U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.
Ben BernankeIt's true that the Federal Reserve faces a lot of political pressure and is unpopular in many circles.
Ben BernankeMonetary policy cannot do much about long-run growth, all we can try to do is to try to smooth out periods where the economy is depressed because of lack of demand
Ben BernankeThe more important reason is that the research itself provides an important long-run perspective on the issues that we face on a day-to-day basis.
Ben BernankeAlthough low inflation is generally good, inflation that is too low can pose risks to the economy - especially when the economy is struggling.
Ben BernankeIf you want to understand geology, study earthquakes. If you want to understand the economy, study the Depression.
Ben BernankeIf current trends continue, the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account.
Ben BernankeLife is amazingly unpredictable; any 22-year-old who thinks they know where they will be in 10 years, much less in 30, is simply lacking imagination.
Ben BernankeLike gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services.
Ben BernankeBoth humanity's capacity to innovate and the incentives to innovate are greater today than at any other time in history.
Ben BernankeImportantly, in the 1930s, in the Great Depression, the Federal Reserve, despite its mandate, was quite passive and, as a result, financial crisis became very severe, lasted essentially from 1929 to 1933.
Ben BernankeThe economist John Maynard Keynes said that in the long run, we are all dead. If he were around today he might say that, in the long run, we are all on Social Security and Medicare.
Ben BernankeEconomics is a highly sophisticated field of thought that is superb at explaining to policymakers precisely why the choices they made in the past were wrong. About the future, not so much.
Ben BernankeWe do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.
Ben BernankeI 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.
Ben BernankeThe people who best use their advantages, or overcome adversity, and work honestly are those most worthy of admiration.
Ben BernankeAchieving price stability is not only important in itself, it is also central to attaining the Federal Reserve's other mandate objectives of maximum sustainable employment and moderate long-term interest rates.
Ben BernankeI generally leave the details of fiscal programs to the Administration and Congress. That's really their area of authority and responsibility, and I don't think it's appropriate for me to second guess.
Ben BernankeIf I am confirmed, I am confident that my colleagues on the Federal Open Market Committee and I will maintain the focus on long-term price stability as monetary policy's greatest contribution to general economic prosperity and maximum employment.
Ben BernankeA money-financed tax cut is essentially equivalent to Milton Friedman's famous 'helicopter drop' of money.
Ben BernankeThe crisis in Europe has affected the US economy by acting as a drag on our exports, weighing on business and consumer confidence and pressuring US financial markets and institutions.
Ben BernankeA gold standard doesn't imply stability in the prices of the goods and services that people buy every day, it implies a stability in the price of gold itself.
Ben BernankeGiven the central role of effective, firmwide risk management in maintaining strong financial institutions, it is clear that supervisors must redouble their efforts to help organizations improve their risk-management practices...We are also considering the need for additional or revised supervisory guidance regarding various aspects of risk management, including further emphasis on the need for an enterprise-wide perspective when assessing risk.
Ben BernankeSpeaking as somebody who has been happily married for 35 years, I can't imagine any choice more consequential for a lifelong journey than the choice of a traveling companion.
Ben BernankeNobody likes to fail but failure is an essential part of life and of learning. If your uniform isn't dirty, you haven't been in the game.
Ben BernankeThe sources of deflation are not a mystery. Deflation is in almost all cases a side effect of a collapse of aggregate demand.. a drop in spending so severe that producers must cut prices on an ongoing basis in order to find buyers.
Ben BernankeI 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.
Ben BernankeI assure this committee that, if I am confirmed, I will be strictly independent of all political influences... essential to that institution's ability to function effectively and achieve its mandated objectives.
Ben BernankeIf you are not happy with yourself, even the loftiest achievements won't bring you much satisfaction.
Ben BernankeI don't think that Chinese ownership of U.S. assets is so large as to put our country at risk economically.
Ben BernankeOver the years, the U.S. economy has shown a remarkable ability to absorb shocks of all kinds, to recover, and to continue to grow.
Ben BernankeThe amount of currency in circulation is not changing. The money supply is not changing in any significant way.
Ben BernankeThe 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.
Ben BernankeEconomics is a very difficult subject. I've compared it to trying to learn how to repair a car when the engine is running.
Ben BernankeUnder current law, on January 1, 2013, there's going to be a massive fiscal cliff of large spending cuts and tax increases.
Ben Bernanke