If the fiscal cliff occurs, I don't think the Federal Reserve has the tools to offset that event. Ben Bernanke More Quotes by Ben Bernanke More Quotes From Ben Bernanke I am very proud of my nerd-dom. Ben Bernanke doms nerd proud Investment banks manage to go bankrupt through their investment-banking activities, commercial banks manage to go bankrupt through their commercial-banking activities. Ben Bernanke commercial-banks investment banking Developments in financial markets can have broad economic effects felt by many outside the markets. Ben Bernanke economic financial development ...the Federal Reserve has the capacity to operate in domestic money markets to maintain interest rates at a level consistent with our economic goals Ben Bernanke investing levels goal Every effort needs to be made to try and offset the costs of Katrina and Rita by reductions in other government programs, especially those that are wasteful, duplicative and ineffective. Ben Bernanke effort government trying If you are asking me if I would advocate that the Chinese go to greater flexibility in their exchange rate, I certainly would. Ben Bernanke rate chinese asking 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 Bernanke turkeys want moving To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above. Ben Bernanke entitlement defense social 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. Ben Bernanke issues perspective running 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. Ben Bernanke standards gold people Monetary policy is not a panacea. Ben Bernanke monetary-policy panacea policy 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. Ben Bernanke demand risk path 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. Ben Bernanke inference chance guidance 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. Ben Bernanke investing risk use Weaker currencies abroad mean a strong dollar, and a stronger dollar, together with a weak global environment, is a drag on the U.S. economy. 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. Ben Bernanke important strong mean The Fed could leave the balance sheet where it is and that wouldn't be a problem. Ben Bernanke top-news The student loan situation is a risk, but a different kind of risk. Ben Bernanke money Ninety-seven percent of loans are made by the government, not banks. So it is a fiscal issue and an issue for students who have debt because it affects their ability to buy houses and cars. Ben Bernanke money I assure you they have a substantial portion of the government's debt themselves. Ben Bernanke money This is it, there won't be anymore. They (Pimco and Citadel) prefer not having me consult too many firms and I personally think working with two firms will be plenty. Ben Bernanke business
