Bernanke is particularly interested in the economic and political causes of the Great Depression, which he has written about extensively, but as I look through the articles written by Bernanke, he speaks on a broad range of topics, such as inflation, unemployment, the housing market, exchange rates and the monetary policy. As I read each article, they all seem to tie in the same message about the economy and how to prosper and grow the country. In Mr. Ben Bernanke first month as chairman of the Federal Reserve, there were many difficulties communicating with the media because he wanted more transparency. He believe that it could improve the monetary policy in the Fed by communicating with the public. He thought the changes will provide a more insight into the Committee's viewpoint. He also thought that it would help households and businesses better understand and foresee how our policy decisions respond to incoming information, and enhance your accountability for the decisions that is made by the people.
Bernanke spoke about inflation as well. He said in the article, Market-Determined Exchange 2004, “China was the most significant exception to the general trend toward inflation stabilization, free capital markets and floating exchange rates. China has strict barriers to capital flows, as well as an exchange rate that is effectively pegged to the U.S dollar.”(pg.1). He thought the US would benefit from China and other East Asian countries if they made the transition to floating exchange rates and freer capital flows.
Bernanke also made speeches about recent economic problems that were facing the nation. He was now faced with an economy that was collapsing because of the negligence by many. In his speeches, Bernanke discussed how the housing prices and rising mortgage defaults and foreclosures weighed on the US economy. He also talked about how businesses were being very cautious and were reducing their workforces and capital investments. He believes that once business started to pick up again, businesses would be able to increase production. In a speech titled Strengthening the Financial System 2009, Bernanke said “The US needed a comprehensive plan to help prevent another financial crisis that was experienced for the past two years. (pg.390)”. He thought the crisis began because the regulatory powers and capacities lagged the tight combination of conventional lending activities with the issuance, trading, and financing of securities.
Ben Bernanke: An Annotated Bibliography
Bernanke, B. S., & Mishkin, F. S. (1997). Inflation Targeting: A New Framework for Monetary Policy?. Journal of Economic Perspectives, 11 (2), 97-116. Database. The authors of this work describe a new theory among central bankers called “inflation targeting” which is an attempt to set monetary policy in a way that sets a target range to control the inflation rate. The paper describes how the process works, by first announcing the official target range for the controlled inflation and then breaks down the policies enacted that are meant to meet that goal. This work is highly useful for those researching macroeconomic policy setting for central banks around the world. The work describes why central banks around the world choose a strategy and how the policy is implemented to support that strategy. Bernanke, B .S. (2005). The global saving glut and the US current account deficit. Retrieved from http://www.federalreserve.gov/boarddocs/speeches/2005/200503102/default.htm Speech. Ben Bernanke gave a speech to the Virginia Association of Economics in Richmond Virginia on the state of the US debt. He explains how the national debt is related to the massive trade deficit the US has experienced over the last several decades. He also gives light to a trend that has most developed nations in debt and borrowing money from developing nations that have large surpluses of money. This speech...
Bibliography: Bernanke. B. S., & Gertler, M. L. (1999). Monetary Policy and Asset Price Volatility. Retrieved from http://www.kc.frb.org/PUBLICAT/SYMPOS/1999/4q99bern.pdf Report.
Bernanke, B. S., & Gertler, M. L. (2001). Should Central Banks Respond to Movements in Asset Prices?. Retrieved from http://www.nyu.edu/econ/user/gertlerm/assets.pdf Report.
Bernanke, B. S. (2002). Deflation: Making sure “It” doesn’t Happen Here. Retrieved from http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm Speech.
Bernanke, B. S., Reinhart, V. R., & Sack, B. (2004). Monetary Policy Alternatives at the Zero Bound: An Empirical Assessment. Retrieved from http://www.federalreserve.gov/pubs/feds/2004/200448/200448abs.html Report.
Bernanke, B. S., & Gertler, M. A. (1995). Inside the Black Box: The Credit Channel of Monetary Policy Transmission. Journal of Economic Perspectives, 9(4), 27-48. Database.
Bernanke, B. S., & Blinder, A. (1992). The Federal Funds Rate and the Channels of Monetary Transmission. American Economic Review, 82(4), 1-21. Database.
Bernanke, B. S., & Kuttner, K. N. (2003). What Explains the Stock Market’s Reaction to Federal Reserve Policy?. Retrieved from http://www.newyorkfed.org/research/staff_reports/sr174.pdf Report.
Bernanke, B. S. (2010). Monetary Policy and the Housing Bubble. Retrieved from http://www.federalreserve.gov/newsevents/speech/bernanke20100103a.htm Speech.
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