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.
BEN BERNANKEAlthough low inflation is generally good, inflation that is too low can pose risks to the economy – especially when the economy is struggling.
More Ben Bernanke Quotes
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It must be awfully frustrating to get a small raise at work and then have it all eaten by a higher cost of commuting.
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A gold standard doesn’t imply stability in the prices of the goods and services that people buy every day, it implies a stability in the price of gold itself.
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The more guidance a central bank can provide the public about how policy is likely to evolve the greater the chance that market participants will make appropriate inferences.
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Education – lifelong education for everyone – from toddlers to workers well advanced in their careers – is indeed an excellent investment for individuals and society as a whole.
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I am confident that we will meet whatever challenges the future may bring.
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In fact, the world needs more nerds.
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The more important reason is that the research itself provides an important long-run perspective on the issues that we face on a day-to-day basis.
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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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Investment banks manage to go bankrupt through their investment-banking activities, commercial banks manage to go bankrupt through their commercial-banking activities.
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I come from Main Street, from a small town that’s really depressed.
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If Wall Street crashes, does Main Street follow? Not necessarily.
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The best approach here, if at all possible, is to use supervisory and regulatory methods to restrain undue risk-taking and to make sure the system is resilient in case an asset-price bubble bursts in the future.
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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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If your uniform isn’t dirty, you haven’t been in the game.
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A collapse in U.S. stock prices certainly would cause a lot of white knuckles on Wall Street. But what effect would it have on the broader U.S. economy? If Wall Street crashes, does Main Street follow? Not necessarily.
BEN BERNANKE