Under former chairman Ben Bernanke and current chairwoman Janet Yellen, the Fed has attracted controversy by pegging the short-term interest rate it controls to nearly zero for seven years. After one increase in December, it is still...Show More Summary
Former Federal Reserve Chair Ben Bernanke (L), and former Chair Paul Volcker look on during a panel discussion at the International House in New York on April 7, 2016. / AFP / POOL / Andrew Renneisen (Photo credit should read ANDREW RENNEISEN/AFP/Getty Images) Let’s look at the Fed’s (and other central [...]
(September 26, 2016 10:45 AM, by Scott Sumner) Here's Ben Bernanke on the recent moves by the Bank of Japan: The most surprising, and interesting, part of the announcement was the decision to target the ten-year JGB yield. As I noted in a previous piece on targeting longer-term... (0 COMMENTS)
Ben Bernanke: The latest from the Bank of Japan: The Bank of Japan’s (BOJ) policy announcement today had two main parts. First, the BOJ committed itself to continue expanding the monetary base until the inflation rate “exceeds the price stability...
Wall Street is talking a second "taper tantrum." In 2013, then Federal Reserve Chairman Ben Bernanke announced that the Fed would taper, or gradually reduce, its bond-buying program that pumped money into the financial system. Investors...Show More Summary
``It seems clear that Rogoff's negative interest rate/cashless society proposal is structured to engineer a back-door US government debt default... More worrying for investors: the fact that Rogoff, Ben Bernanke and others are proposing...Show More Summary
In a blogpost earlier this week, former Fed Chair Ben Bernanke argued for a policy of negative nominal interest rates as being preferable to a higher inflation target for boosting the economy in a severe slump. While his concerns about...Show More Summary
The beginning of a relatively long discussion by Ben Bernanke: Modifying the Fed’s policy framework: Does a higher inflation target beat negative interest rates?: Nominal interest rates are very low, and in a world of excess global saving, low inflation,...
Ben Bernanke: Should the Fed keep its balance sheet large?: I attended the Fed’s recent gathering in beautiful Jackson Hole, Wyoming... As usual, the media were most focused on divining the next policy move of the Federal Open Market Committee...
(September 2, 2016 11:53 AM, by David Henderson) Hamilton was without doubt the best and most foresighted economic policymaker in U.S. history. So writes former Fed chairman Ben Bernanke. Monetary economist and fellow UCLA grad Lawrence H. White disagrees. Larry writes: Now that the controversy has cooled we... (4 COMMENTS)
Tomorrow is the big annual Fed conference in Wyoming. It typically draws the world's most powerful central bankers. This is where, in 2012, Ben Bernanke telegraphed a round three of its quantitative easing program. The economy was still shaky following the escalating sovereign debt crisis in Europe, which had taken Spain [...]
While historically the Kansas Fed's Jackson Hole symposium has not lead to dramatic market moves (with the exception of 2010 when Ben Bernanke unveiled QE2), it has traditionally served as a springboard for the Fed to prepare the market for any major shifts in policy, such as the 2013 tapering of QE. Show More Summary
Here is Ben Bernanke in 1999, talking about the situation in Japan: With respect to the issue of inflation targets and BOJ credibility, I do not see how credibility can be harmed by straightforward and honest dialogue of policymakers with the public. In stating an inflation target of, say, 3-4%, the BOJ would be giving […]
OFFICIALS at the Federal Reserve, a few of them anyway, seem to be rethinking their views of the economy in some dramatic ways. In a new blog post, however, Ben Bernanke suggests that Fed watchers shouldn't overstate the radicalism of the intellectual evolution within the Fed.
Ben Bernanke has a post discussing the Fed’s evolving view of the economy: I’ll focus here on FOMC participants’ longer-run projections of three variables—output growth, the unemployment rate, and the policy interest rate (the federal funds rate)—and designate these longer-run values by y, u, and r, respectively. Show More Summary
I see that Ben Bernanke talks about how the Fed’s views of the economy are changing, in particular that the Fed funds rate at the Natural level of production (Terminal as Bernanke puts it) is being revised downward in the past year. This agrees with my research into effective demand. I see that the Natural […]
Ben Bernanke: The Fed’s shifting perspective on the economy and its implications for monetary policy:...The Federal Reserve has... been revising its views on some key aspects of the economy, and that’s been affecting its outlook both for the...
Below is a final draft of a research note that will be posted on www.kbra.com later today. See final for chart & notes. It seems pretty clear that the initial reaction of the Federal Open Market Committee under Chairman Ben BernankeShow More Summary
How do people really feel about the economy? Ben S. Bernanke Brookings, June 30, 2016 Note: this was published last month, prior to either the GOP or DEM conventions. Political outsiders have had quite a good year in the United States...Show More Summary
Sayeth Professor Ball: "Fed officials have not been transparent about the Lehman crisis."