Although 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 are not happy with yourself, even the loftiest achievements won’t bring you much satisfaction.
More Ben Bernanke Quotes
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If you want to understand geology, study earthquakes. If you want to understand the economy, study the Depression.
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The people who best use their advantages, or overcome adversity, and work honestly are those most worthy of admiration.
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The crisis and recession have led to very low interest rates, it is true, but these events have also destroyed jobs, hamstrung economic growth and led to sharp declines in the values of many homes and businesses.
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Life 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.
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Speaking 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.
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A money-financed tax cut is essentially equivalent to Milton Friedman’s famous ‘helicopter drop’ of money.
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I am confident that we will meet whatever challenges the future may bring.
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The basic prescription for preventing deflation is therefore straightforward, at least in principle: Use monetary and fiscal policy as needed to support aggregate spending.
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The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.
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I don’t fully understand movements in the gold price.
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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.
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The central bank needs to be able to make policy without short term political concerns.
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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.
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It’s true that the Federal Reserve faces a lot of political pressure and is unpopular in many circles.
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The GSEs are adequately capitalized. They are in no danger of failing.
BEN BERNANKE