“Importantly, in the 1930s, in the Great Depression, the Federal Reserve, despite its mandate, was quite passive and, as a result, financial crisis became very severe, lasted essentially from 1929 to 1933.”

With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.

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.

The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.

I generally leave the details of fiscal programs to the Administration and Congress. That’s really their area of authority and responsibility, and I don’t think it’s appropriate for me to second guess.

One might as well try to perform brain surgery with a sledgehammer.

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.

It is not the responsibility of the Federal Bank – nor would it be appropriate – to protect lenders and investors from the consequences of their decisions

The amount of currency in circulation is not changing. The money supply is not changing in any significant way.

If Wall Street crashes, does Main Street follow? Not necessarily.

In fact, the world needs more nerds.

Although low inflation is generally good, inflation that is too low can pose risks to the economy – especially when the economy is struggling.

The benefit of appointing a hawkish central banker is the increased inflation-fighting credibility that such an appointment brings.

If I am confirmed, I am confident that my colleagues on the Federal Open Market Committee and I will maintain the focus on long-term price stability as monetary policy’s greatest contribution to general economic prosperity and maximum employment.

If you are asking me if I would advocate that the Chinese go to greater flexibility in their exchange rate, I certainly would.

I don’t fully understand movements in the gold price.

Under a cold turkey strategy, at each policy meeting the Federal Open Market Committee would make its best guess about where it ultimately wants the funds rate to be and would move to that rate in a single step.

It’s money. I remember it from when I was single

The financial industry undergirded the entire economy and if it is made riskier by deregulation and collapses in widespread bankruptcies as what happened in 2008, the entire economy freezes because it runs on credit.

They need to know that they are under financial obligations to nobody, other than public lending institutions, except to the extent that they are publicly declared.

Financial storm definitely passed.

Money, financial matters were to help people, to help them survive, not to have a bigger house or a bigger car and that sort of thing, because I hear that from so many kids, they often don’t know why their father won’t spend more time with them.

I can tell you about health care and also about the financial reform bill. The Barack Obama, the President personally and his administration officials at his direction were very much involved.

Theirs is an endless road, a hopeless maze, who seek for goods before they seek for God.

The money cost of the reservoir plan literally fades into insignificance when it is compared with the financial burden which the great depression imposed on the nation.