Ben Bernanke famously quipped that monetary policy works in practice, but not in theory. This column bridges the gap between practice and theory in assessing how central banks can influence both of them by intervening in asset markets. Show More Summary
‘The problem with Quantitative Easing is that it works in practice but it doesn’t work in theory’, dixit Ben Bernanke, previous chairman of the Federal Reserve. And he isn’t wrong because these special ‘tricks’ generally don't have the desired effect without creating negative consequences. Show More Summary
Three years ago, a very unhappy Larry Summers conceded that he would not become Fed Chair when he withdrew from the running to become Ben Bernanke's replacement on September 15, 2013, following some dramatic pressure by the press and numerous liberal economists. Show More Summary
Well, that was something. Our palette cleansing morning train reads: • Ben Bernanke: Are Americans better off than they were a decade or two ago? (Brookings) • Economic Anxiety and the Limits of Data Journalism (Baseline Scenario) see...Show More Summary
Ben Bernanke and Peter Olson: Are Americans better off than they were a decade or two ago?: Economically speaking, are we better off than we were ten years ago? Twenty years ago? When asked such questions, Americans seem undecided, almost...
Ben Bernanke first set an official inflation target in January 2012, aiming at 2%. Since then the Fed has claimed that it would begin to normalize interest rates when the target was reached and unemployment fell below 5%. The latterShow More Summary
Submitted by Jeffrey Snider via Alhambra Investment Partners, Though I highly doubt he will admit it, he’s just not the type, even Ben Bernanke knows on some level that bond market is decidedly against him, or at least his legacy. Economists have a funny way of looking at bonds, decomposing interest rates into Fisherian strata. Show More Summary
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 […]