“We’ve never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s going to drive the economy too far from its full employment path, though.” ThinkingMightHouseBitsEconomyPathBasesSpendingEmploymentDeclineConsumptionHouse Prices Author:Ben Bernanke
“I 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.” IfsPoliticalAbilityEconomyInfluenceAchieveEssentialsFunctionIndependentInstitutionsObjectivesCommitteesPolitical Influence Author:Ben Bernanke
“Our mission, as set forth by the Congress is a critical one: to preserve price stability, to foster maximum sustainable growth in output and employment, and to promote a stable and efficient financial system that serves all Americans well and fairly.” WellsGrowthEconomyFinancialCongressMissionsCriticalEmploymentPreservesStabilityEfficientStableMaximumOutputFinancial SystemPrice Stability Author:Ben Bernanke
“The risk exists that, with aggregate demand exhibiting considerable momentum, output could overshoot its sustainable path, leading ultimately in the absence of countervailing monetary policy action to further upward pressure on inflation.” ActionEconomyPathRiskPolicyDemandPressureAbsenceInflationMomentumMonetaryOutputMonetary Policy Author:Ben Bernanke
“The 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.” ActingEconomyEuropeCrisisInstitutionsFinancialConsumersAffectedDragWeighingFinancial MarketsConsumer Confidence Author:Ben Bernanke
“I'd throw dollars out of helicopters if I had to, to stimulate the economy.” IfsEconomyDollarsHelicopters Author:Ben Bernanke
“Inflation is certainly low and stable and, measured in unemployment and labour-market slack, the economy has made a lot of progress. The pace of growth is disappointingly slow, mostly because productivity growth has been very slow, which is not really something amenable to monetary policy. It comes from changes in technology, changes in worker skills and a variety of other things, but not monetary policy, in particular.” GrowthTechnologyEconomyProgressPolicyProductivityVarietyInflationMonetary Author:Ben Bernanke
“Weaker currencies abroad mean a strong dollar, and a stronger dollar, together with a weak global environment, is a drag on the U.S. economy. So it's important, as it affects overall levels of production and employment in the U.S. There are many domestic industries doing well in the United States, notwithstanding a strong dollar.” MeanImportantTogetherStrongEconomyEnvironmentWeakStrongerCurrency Author:Ben Bernanke
“Achieving 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.” LongImportantTermInterestEconomyAchieveRateObjectivesEmploymentLong TermStabilityReservesModeratesMaximumMandatesFederal ReserveInterest RatePrice Stability Author:Ben Bernanke
“Every effort needs to be made to try and offset the costs of Katrina and Rita by reductions in other government programs, especially those that are wasteful, duplicative and ineffective.” NeedsTryingMadeGovernmentEffortEconomyCostProgramReductionKatrinaGovernment Programs Author:Ben Bernanke
“The basic prescription for preventing deflation is therefore straightforward, at least in principle: Use monetary and fiscal policy as needed to support aggregate spending, in a manner as nearly consistent as possible with full utilization of economic resources and low and stable inflation. In other words, the best way to get out of trouble is not to get into it in the first place.” WayFirstsUseBusinessPrinciplesSupportEconomyTroubleEconomicPolicyNeededLowsResourcesEconomicsSpendingBest WayFinanceConsistentStableInflationStraightforwardMonetaryPrescriptionsPreventingUtilizationDeflationFiscal PolicyEconomic Resources Author:Ben Bernanke
“If you want to understand geology, study earthquakes. If you want to understand the economy, study the Depression.” IfsWantEconomyStudyDepressionEarthquakesGeology Author:Ben Bernanke
“Over the years, the U.S. economy has shown a remarkable ability to absorb shocks of all kinds, to recover, and to continue to grow. Flexible and efficient markets for labor and capital, an entrepreneurial tradition, and a general willingness to tolerate and even embrace technological and economic change all contribute to this resiliency.” YearsKindGrowsChangeAbilityTechnologyEconomyEconomicEconomicsTraditionLaborEmbraceEntrepreneurAll KindsShockRemarkableWillingnessEfficientTolerateTechnologicalFlexibleEntrepreneurialResiliencyEfficient MarketsLabor And CapitalEconomic Change Author:Ben Bernanke
“The 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.” OrderSidesCasesEconomyCuttingMysteryEffectsSourceDemandEconomicsBasesSpendingProducersFinanceCollapseSevereOngoingBuyersSide EffectsDeflation Author:Ben Bernanke
“There's no denying that a collapse in stock prices today would pose serious macroeconomic challenges for the United States. Consumer spending would slow, and the U.S. economy would become less of a magnet for foreign investors. Economic growth, which in any case has recently been at unsustainable levels, would decline somewhat. History proves, however, that a smart central bank can protect the economy and the financial sector from the nastier side effects of a stock market collapse.” StatesTodaySidesGrowthChallengesLevelsUnitedCasesUnited StatesEconomyEconomicEffectsSeriousProtectProveSmartEconomicsFinancialSpendingFinanceConsumersInvestorsDeclineCollapseEconomic GrowthMagnetSide EffectsCentral BanksMacroeconomicsStock Price Author:Ben Bernanke
“The economic repercussions of a stock market crash depend less on the severity of the crash itself than on the response of economic policymakers, particularly central bankers.” EconomyEconomicDependsEconomicsResponseCrashBankersRepercussionsSeverityMarket CrashStock Market Crash Author:Ben Bernanke
“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.” IfsDoeCausesWhiteEconomyStreetsEffectsWallEconomicsInvestingCollapseCrashKnucklesMain StreetStock Price Author:Ben Bernanke
“Indeed, in general, healthy investment returns cannot be sustained in a weak economy, and of course it is difficult to save for retirement or other goals without the income from a job.” JobsCoursesDifficultGoalEconomyReturnHealthyWeakInvestmentIncomeRetirement Author:Ben Bernanke
“The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so.” PastEconomyRiskMonthsOver The PastDownturn Author:Ben Bernanke
“The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again.” SeemsBehindsEconomyCrisisFinancialExpandingFinancial Crisis Author:Ben Bernanke
“Although low inflation is generally good, inflation that is too low can pose risks to the economy - especially when the economy is struggling.” StruggleEconomyRiskLowsInflation Author:Ben Bernanke
“The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.” ProblemSeemsEconomyImpactFinancialFinancial Markets Author:Ben Bernanke
“We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.” EconomyFinancialSignificantFinancial System Author:Ben Bernanke
“Over the years, the U.S. economy has shown a remarkable ability to absorb shocks of all kinds, to recover, and to continue to grow.” YearsKindSuccessGrowsAbilityEconomyAll KindsShockRemarkable Author:Ben Bernanke
“Monetary 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” TryingLongRunningGrowthEconomyPolicyPeriodsDemandLong RunsSmoothMonetaryMonetary Policy Author:Ben Bernanke
