“We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.”

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.

Today, we jump into this globalization of the economy and the internet age.

I think this is a moment of a lot of possibilities, and openings. Occupy and the 99% movement are really going to break through, and we are going to create a new economy.

They are simply not capable of promoting the indigenous economy. Many billions of dollars flooded into Afghanistan, but without any significant effect.

To handle the economy and services in a country like Iraq requires delegation of authority and the choice of competent people.

What is doing the damage is the fact that the U.K. is pulling in more imports, which shows the continued strength of the economy and the strength of sterling.

Russia is a competitor. They’re a strong nation, something we need to recognize, but their economy is just a little bit bigger than Illinois, so they’re not our equal.

Eric Schlosser’s book on the economy and strategies of the fast-food business should be read by anyone who likes to take their children to fast-food restaurants.

We don’t know how to get out of this malaise and I think we now have to consider more radical policies.