The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.
BEN BERNANKEIf you are asking me if I would advocate that the Chinese go to greater flexibility in their exchange rate, I certainly would.
More Ben Bernanke Quotes
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The Federal Reserve is not currently forecasting a recession.
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The American people are among the most productive in the world. We have the best technologies. We have – great universities. We have entrepreneurs.
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Developments in financial markets can have broad economic effects felt by many outside the markets.
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I don’t think that Chinese ownership of U.S. assets is so large as to put our country at risk economically.
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Economics is a highly sophisticated field of thought that is superb at explaining to policymakers precisely why the choices they made in the past were wrong. About the future, not so much.
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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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Our mission, as set forth by the Congress is a critical one: to preserve price stability, to foster maximum sustainable growth in output and employment, and to promote a stable and efficient financial system that serves all Americans well and fairly.
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If Wall Street crashes, does Main Street follow? Not necessarily.
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The benefit of appointing a hawkish central banker is the increased inflation-fighting credibility that such an appointment brings.
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The economic repercussions of a stock market crash depend less on the severity of the crash itself than on the response of economic policymakers, particularly central bankers.
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Although low inflation is generally good, inflation that is too low can pose risks to the economy – especially when the economy is struggling.
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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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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.
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The GSEs are adequately capitalized. They are in no danger of failing.
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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.
BEN BERNANKE