Bernanke Gets Vocal on the Economy & the Financial Crisis

October 5th, 2015

Bernanke Gets Vocal on the Economy & the Financial Crisis 

Former Federal Reserve Chairman Ben Bernanke recently released a memoir accounting his time during the financial crisis, entitled The Courage to Act:  A Memoir of a Crisis and Its Aftermath. Over the weekend, Bernanke also published an op-ed in the Wall Street Journal championing the Federal Reserve, aptly titled “How the Fed Saved the Economy.”  In both pieces, the former Chairman appears to be setting the record straight on his tenure and providing guidance for future monetary policy.

One of the key takeaways from Bernanke’s memoir is his call for more accountability at an individual level.  He expresses regret at not jailing or brining prosecutions against Wall Street executives, taking particular aim at AIG.  Bernanke also regrets allowing Lehman Brothers to collapse and not better communicating policy decisions to the American public.

Bernanke’s recent op-ed takes a more affirming stance on the decisions of the Board of Governors of the Federal Reserve, both during and after his chairmanship.  He writes, “It is encouraging to see that the U.S. economy is approaching full employment with low inflation, the goals for which the Fed has been striving.”  Bernanke also clarifies the two main roles the Federal Reserve can play in managing the economy. He writes, “by mitigating recessions, monetary policy can try to ensure that the economy makes full use of its resources, especially the workforce,” and adds that “by keeping inflation low and stable, the Fed can help the market-based system function better and make it easier for people to plan for the future.”

Resources:

Bernanke Editorial:

Bernanke’s Memoir:

Press: