“I served seven years as the chair of the Princeton economics department where I had responsibility for major policy decisions, such as whether to serve bagels or doughnuts at the department coffee hour.”

Among the largest banks, the capital ratios remain good and I don’t expect any serious problems . . . . among the large, internationally active banks that make up a very substantial part of our banking system.

The Federal Reserve will not monetize the debt.

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.

The basic prescription for preventing deflation is therefore straightforward, at least in principle: Use monetary and fiscal policy as needed to support aggregate spending.

Achieving price stability is not only important in itself, it is also central to attaining the Federal Reserve’s other mandate objectives of maximum sustainable employment and moderate long-term interest rates.

The risk exists that, with aggregate demand exhibiting considerable momentum, output could overshoot its sustainable path, leading ultimately in the absence of countervailing monetary policy action to further upward pressure on inflation.

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.

I try to do nothing. I drink rosemary when I have a lot of work to do. People take coffee, they take speed, whatever. I take rosemary.

The problem with breaking up with someone, if you are a little unsure – and so often, people are unsure – is that breaking up involves persuasion.

And this is difficult if you have not entirely persuaded yourself. It is especially tricky to do this if you are also naked, and making two cups of coffee.

I still think the best classic meal in New York is a coffee-shop breakfast – you sort of can’t skip it.

I feel that I’d rather know an actors’ work, or have an instinct about them and sit down and have coffee with them, or I’ll see them in something and I’ll see if I can get along with them in some way, shape, or form.

I don’t like soccer. I think it makes you soft. And by the way, you telling me it’s the biggest whatever in the World, look, they drink tea everywhere too; they’re pussies, you understand? I want some coffee.

The coffee shop is a great New York institution, but it has terrible coffee. And the more traditional coffee shops are trying to catch up with more sophisticated coffee drinkers.

You know you’re going to get it, but it’s going to be rough.