Federal Reserve System

Powerful Essays
money and banking | Federal Reserve System | FIN 402 Module 2 Case | | Derrick Smith | 7/23/2013 |

|

ABSTRACT
Ben Bernanke was a key player in U.S. economic policy well before the Great Recession, and during that time seems to have achieved almost mythical status. The prolonged economic crisis has kept him front and center in the news, with regular appearances on Capitol Hill and increasingly heated rhetoric from detractors. As Federal Reserve chairman, Bernanke maintains as he attempts to steer the nation onto a steadier economic course. Federal Reserve Chairman Ben Bernanke is, by all accounts, a man of formidable intelligence. He scored 1590 on his SATs, taught himself calculus in high school, and graduated summa cum laude from Harvard University. He then went on to earn his Ph.D. in economics from the Massachusetts Institute of Technology, with a dissertation on the Great Depression—knowledge that has almost certainly informed his policy moves during the current economic downturn. Ben Bernanke’s bond buying program that has been in place for the last couple of years is starting to be wound back up. US sharemarkets have surged to new record highs on the back of that news, with further gains of around 1.5% just recently, which means that US stocks are up almost 7% in the last two weeks. At the same time, the US dollar has weakened and the yield on government bonds has fallen back, although they remain substantially higher than the yield of a few months ago as the better economic news has underscored a generally sluggish sentiment. It is strikingly clear that Bernanke is not going to make the same mistakes that knee-capped each mini-recovery that emerged during the 1930s Great Depression, when policy-makers prematurely tightened policy on several occasions when there were tentative signs that the economy was improving.

As an academic specialist of the Great Depression, Bernanke is aware that the US economy is still vulnerable to a



References: Coffey, L.T. (2009). Bernanke is TIME’s 2009 person of the year. Retrieved from http://www.msnbc.msn.com/id/34441681/ns/today-today_people/?GT1=43001 Magana, J.L. (2010). Senate confirms Bernanke for second term. Retrieved from http://www.msnbc.msn.com/id/35124892/ns/business-stocks_and_economy Paul, R. (2009). Ron Paul reacts to Bernanke as ‘Time’ person of the year. Retrieved from http://www.zimbio.com/Ben+Bernanke/articles/NsgiQEG0wyW/Important+News+Dec+17 Lp, G. (2007). Bernanke notes risks but holds to outlook; Fed Chief sees more factors that could slow growth; added subprime attention. Wall Street Journal, A2. Retrieved from library portal. Rajan, A. (2009). How successful has Ben Bernanke 's first term as Fed chairman been? The Independent, pg. 26. Retrieved from library portal. Bernanke, B.S. (2010). Fiscal Sustainability and Fiscal Rules Retrieved from http://www.federalreserve.gov/newsevents/speech/bernanke20101004a.htm Clipsandcomment.com (2009). Ben Bernanke Testimony on Economy and Federal Budget. Retrieved from http://www.clipsandcomment.com/2009/03/03/full-text-ben-bernanke-testimony-on-economy-and-federal-budget-march-3

You May Also Find These Documents Helpful

  • Powerful Essays

    The Federal Reserve System

    • 2808 Words
    • 12 Pages

    The Federal Reserve System Why do a research paper on the Federal Reserve System? This is a question we went over in our heads while making a decision on the type of research paper to do, what we wanted to learn more about and why. Over the past few years we have realized the impact that the Federal Government has on our economy, yet we never knew enough about the subject to understand why. While taking this Economics course it has brought so many things to our attention, especially since we see…

    • 2808 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Federal Reserve System

    • 1194 Words
    • 5 Pages

    Federal Reserve System Name Course Institution Instructor Date INTRODUCTION The Federal Reserve is the backbone of the American government financial system. It plays a crucial role in controlling and sustaining the government and nation financial system in a stable and good shape i.e stabilize the economic growth of the country. President Woodrow Wilson has introduced the system from about 100 years ago, hence Federal Reserve Act was launched to overcome many issues and obstacles that had occurred…

    • 1194 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    The Federal Reserve System

    • 4890 Words
    • 20 Pages

    Even before the creation of the Federal Reserve, banks were used by the public just as we use them today. Deposits were made into savings accounts. Loans were taken out to mortgage a home or finance a new business. Banknotes were issued and spent when the public borrowed from the banks. Borrowers spent these banknotes just as paper money is spent today. These bank notes were valued as money since they were backed by the promise that they would be exchanged on demand for either gold or silver…

    • 4890 Words
    • 20 Pages
    Powerful Essays
  • Better Essays

    The Federal Reserve System

    • 1267 Words
    • 6 Pages

    Federal Reserve Bank “The only limit to a commercial bank's ability to discount is the limit to good commercial paper. . . . Such paper springs from seli-clearing transactions. ... It is the duty of the banker to discount freely for his customer in a crisis or panic. . . . The only limit... is the limit to good commercial paper. ... The whole purpose of the Federal Reserve Act is to enforce this practice. -Rep. Charles Korbly (1913)” (Timberlake, Richard, 134-5) For the past decade,…

    • 1267 Words
    • 6 Pages
    Better Essays
  • Good Essays

    The Federal Reserve

    • 1149 Words
    • 5 Pages

    The Role of the Federal Reserve Have you ever wondered who controls the money supply in the United States? I mean it’s certainly one of the most important roles someone can play in the U.S. government; the answer is the Fed. The Fed is also known as the Federal Reserve System. It’s the central banking system of the United States. It was established in 1913 by congress to control monetary policy, the use of changes in the amount of money in circulation to alter credit markets, employment and…

    • 1149 Words
    • 5 Pages
    Good Essays
  • Better Essays

    The Federal Reserve

    • 3909 Words
    • 16 Pages

    The Federal Reserve’s Response to the Financial Crisis Emily Gibson ECON 315 Money, Banking, and Monetary Economics Fall 2012 The Beginnings of the United States Financial Crisis The world financial crisis began in 2006 in the United States housing and related mortgage markets. Soon it spread to the entire U.S. economy and then to the rest of the world. In August 2007, the turmoil moved from the securitized U.S. mortgage markets to the interbank lending…

    • 3909 Words
    • 16 Pages
    Better Essays
  • Good Essays

    Federal Reserve

    • 656 Words
    • 3 Pages

    Federal Reserve Paper Federal Reserve Paper by LeAnn Bomar University of Phoenix Eco/372 Principles of Macroeconomics May 16, 2013 I have been asked to prepare this essay to familiarize foreign officials with The United States Federal Reserve. As parties interested in doing business in our country, I understand how important it is for you to inform yourselves on the Federal Reserve and how it operates. In this paper, there will be information pertaining…

    • 656 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Federal Reserve System, though it has many different functions was established to serve the public's interest. The Federal Reserve has three vital sectors that help in its day to day function: the Board of Governors, the Reserve Banks, and the Federal Open Market Committee (FOMC). “The Master said: “Learning without thinking is useless. Thinking without learning is dangerous”’ (Confucius The Analects pg. 7). The Board of Governors is ran by seven member or “governors” that oversees the all operations…

    • 938 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Federal Reserve

    • 2726 Words
    • 11 Pages

    Mohamed Badwan 15 April 2012 English 3010 THE FEDERAL RESERVE: ROOT OF ALL EVILS The U.S. Federal Reserve activities cause many questions in the American public since the 2008 crisis, when it was charged that its policies has led to financial collapse. In 2012, the issue of the Federal Reserve is once again at the forefront of public interest in the U.S., primarily because this structure is under constant criticism of Congressman Ron Paul. Paul represents the libertarian wing of the Republican…

    • 2726 Words
    • 11 Pages
    Powerful Essays
  • Best Essays

    The Federal Reserve

    • 2763 Words
    • 12 Pages

    The Federal Reserve Bank serves as the United States of America’s central bank. From the beginning of the nation, the need for management of the country’s money supply, assistance in the fiscal operations of the federal government and stabilization of the nation’s credit was recognized. Laws that created the Fed: As an attempt to achieve these need and others, several attempts at creating centralized banking have been tried and all have failed save for the Federal Reserve System. Some…

    • 2763 Words
    • 12 Pages
    Best Essays