Bernanke Quotes

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 no cost. ~ Ben Bernanke

Growth in U.S. real imports slowed to about 3 percent in 2006, in part reflecting a drop in real terms in imports of crude oil and petroleum products. ~ Ben Bernanke

Home purchases that are very highly leveraged or unaffordable subject the borrower and lender to a great deal of risk. Moreover, even in a strong economy, unforeseen life events and risks in local real estate markets make highly leveraged borrowers vulnerable. ~ Ben Bernanke

The crisis and recession have led to very low interest rates, it is true, but these events have also destroyed jobs, hamstrung economic growth and led to sharp declines in the values of many homes and businesses. ~ Ben Bernanke

The tax code is very inefficient. Both the personal tax code and the corporate tax code. By closing loopholes and lowering rates, you could increase the efficiency of the tax code and create more incentives for people to invest. ~ Ben Bernanke

There are a number of institutions globally where the Federal Reserve typically leads the U.S. effort to work with financial regulators from other countries, and we try to, to the extent possible, establish international standards for how - the amount of capital a bank should hold, for example, or how much. ~ Ben Bernanke

The Mexican debt crisis, Latin American debt crisis, the crises of the 1990s, the Wall Street stock market crash, and other events should have reminded us, and did remind us, that financial instability remains a concern, remains a problem. ~ Ben Bernanke

To me the gold price takes the form of a very uncomplicated formula, and all you have to do is divide one by 'n.' And 'n', I'm glad you ask, 'n' is the world's trust in the institution of paper money and in the capacity of people like Ben Bernanke to manage it. So the smaller 'n', the bigger the price. One divided by a receding number is the definition of a bull market. ~ James Grant

The actions taken by central banks and other authorities to stabilize a panic in the short run can work against stability in the long run if investors and firms infer from those actions that they will never bear the full consequences of excessive risk-taking. ~ Ben Bernanke

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. ~ Ben Bernanke

I don't think there are any students who should not be exposed to a basic financial literacy course. ~ Ben Bernanke

The financial crisis that began in the summer of 2007 was an extraordinarily complex event with multiple causes. ~ Ben Bernanke

There will not be an automatic increase in interest rate when unemployment hits 6.5%. ~ Ben Bernanke

The central bank needs to be able to make policy without short term political concerns. ~ Ben Bernanke

In a mature economy like India's, which is becoming modern and a financially-oriented economy, an independent central bank, responsible central bank, is really central to success. ~ Ben Bernanke

A.I.G. was even larger than Lehman, with a substantial presence in derivatives and debt markets, as well as in insurance markets. ~ Ben Bernanke

How much would you pay to avoid a second Depression? ~ Ben Bernanke

High levels of homeownership have been shown to foster greater involvement in school and civic organizations, higher graduation rates, and greater neighborhood stability. ~ Ben Bernanke

Long-term unemployment is particularly costly to those directly affected, of course. But in addition, because of its negative effects on workers' skills and attachment to the labor force, long-term unemployment may ultimately reduce the productive capacity of our economy. ~ Ben Bernanke

To the extent that bank panics interfere with normal flows of credit, they may affect the performance of the real economy. ~ Ben Bernanke

If you are not happy with yourself, even the loftiest achievements won't bring you much satisfaction. ~ Ben Bernanke

There are no atheists in foxholes or ideologues in a financial crisis. Ben Bernanke ~ Andrew Ross Sorkin

The people in a position to resolve the financial crisis were, of course, the very same people who had failed to foresee it: Treasury Secretary Henry Paulson, future Treasury Secretary Timothy Geithner, Fed Chairman Ben Bernanke, Goldman Sachs CEO Lloyd Blankfein, Morgan Stanley CEO John Mack, Citigroup CEO Vikram Pandit, and so on. A few Wall Street CEOs had been fired for their roles in the subprime mortgage catastrophe, but most remained in their jobs, and they, of all people, became important characters operating behind the closed doors, trying to figure out what to do next. With them were a handful of government officials - the same government officials who should have known a lot more about what Wall Street firms were doing, back when they were doing it. All shared a distinction: They had proven far less capable of grasping basic truths in the heart of the U.S. financial system than a one-eyed money manager with Asperger's syndrome. ~ Michael Lewis

In all likelihood, a significant amount of time will be required to restore the nearly eight and a half million jobs that were lost nationwide over 2008 and 2009. ~ Ben Bernanke

Economic engineering is about the design and analysis of frameworks for achieving specific economic objectives. ~ Ben Bernanke

No one will lend at a negative interest rate; potential creditors will simply choose to hold cash, which pays zero nominal interest. ~ Ben Bernanke

The banks have accounts with the Fed, much the same way that you have an account in a commercial bank. ~ Ben Bernanke

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. ~ Ben Bernanke

Obviously, I haven't succeeded in defusing the political concerns about the Fed. ~ Ben Bernanke

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 ~ Ben Bernanke

House prices have risen by nearly 25 percent over the past two years. Although speculative activity has increased in some areas, at a national level these price increases largely reflect strong economic fundamentals. ~ Ben Bernanke

If bankers become overly conservative in response to past lending mistakes - or if examiners force such behavior - it will hurt bankers' own long-term interests and the economy in general. ~ Ben Bernanke

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

Economics is a very difficult subject. I've compared it to trying to learn how to repair a car when the engine is running. ~ Ben Bernanke

Given the central role of effective, firmwide risk management in maintaining strong financial institutions, it is clear that supervisors must redouble their efforts to help organizations improve their risk-management practices ... We are also considering the need for additional or revised supervisory guidance regarding various aspects of risk management, including further emphasis on the need for an enterprise-wide perspective when assessing risk. ~ Ben Bernanke

I assure this committee that, if I am confirmed, I will be strictly independent of all political influences ... essential to that institution's ability to function effectively and achieve its mandated objectives. ~ Ben Bernanke

Stronger regulation and supervision aimed at problems with underwriting practices and lenders' risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates. ~ Ben Bernanke

The biggest downside of my current job is that I have to wear a suit to work. Wearing uncomfortable clothes on purpose is an example of what former Princeton hockey player and Nobel Prize winner Michael Spence taught economists to call 'signaling.' ~ Ben Bernanke

I served seven years as the chair of the Princeton economics department where I had responsibility for major policy decisions, such as whether to serve bagels or doughnuts at the department coffee hour. ~ Ben Bernanke

Building a rainy-day fund during good times may not be politically popular, but it can pay off during the bad times. ~ Ben Bernanke

If you're in a car crash, you're mostly involved in trying to not go off the bridge, and later on you say, 'Oh my God!' ~ Ben Bernanke

Developments in financial markets can have broad economic effects felt by many outside the markets. ~ Ben Bernanke

Importantly, in the 1930s, in the Great Depression, the Federal Reserve, despite its mandate, was quite passive and, as a result, financial crisis became very severe, lasted essentially from 1929 to 1933. ~ Ben Bernanke

Evolving technologies that allow economists to gather new types of data and to manipulate millions of data points are just one factor among several that are likely to transform the field in coming years. ~ Ben Bernanke

As you know, in the latter part of 2008 and early 2009, the Federal Reserve took extraordinary steps to provide liquidity and support credit market functioning, including the establishment of a number of emergency lending facilities and the creation or extension of currency swap agreements with 14 central banks around the world. ~ Ben Bernanke

As an educator myself, I understand the profound effect that good teachers and a quality education have on the lives of our young people. ~ Ben Bernanke

Consumers going through foreclosure typically will see their credit scores drop, raising longer-term questions about their ability to rebound financially and perhaps pursue a more sustainable home purchase at some later point. ~ Ben Bernanke

It's true that the Federal Reserve faces a lot of political pressure and is unpopular in many circles. ~ Ben Bernanke

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. ~ Ben Bernanke

Monetary policy is not a panacea. ~ Ben Bernanke

I am particularly pleased to see that the Bendheim Center for Finance is thriving. ~ Ben Bernanke

Myth: Bernanke Fed is committed to stimulus until a recovery occurs. Fact: The current monetary policy assures further capital destruction ~ Ziad K. Abdelnour

It takes about two and a half percent growth just to keep unemployment stable. ~ Ben Bernanke

Market discipline can only limit moral hazard to the extent that debt and equity holders believe that, in the event of distress, they will bear costs. ~ Ben Bernanke

The world has a great deal more to offer than money. ~ Ben Bernanke

To be sure, the provision of liquidity alone can by no means solve the problems of credit risk and credit losses; but it can reduce liquidity premiums, help restore the confidence of investors, and thus promote stability. ~ Ben Bernanke

Clear communication is always important in central banking, but it can be especially important when economic conditions call for further policy stimulus but the policy rate is already at its effective lower bound. ~ Ben Bernanke

The Fed is totally open. ~ Ben Bernanke

If current trends continue, the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account. ~ Ben Bernanke

Both humanity's capacity to innovate and the incentives to innovate are greater today than at any other time in history. ~ Ben Bernanke

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. ~ Ben Bernanke

The one thing people don't appreciate, I think, is that central banking is not a new development. It's been around for a very long time. ~ Ben Bernanke

I would argue that no financial instrument counted as regulatory capital should be allowed to receive any protection from losses. ~ Ben Bernanke

Banks need to continue to lend to creditworthy borrowers to earn a profit and remain strong. ~ Ben Bernanke

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. ~ Ben Bernanke

The crisis in Europe has affected the U.S. economy by acting as a drag on our exports, weighing on business and consumer confidence, and pressuring U.S. financial markets and institutions. ~ Ben Bernanke

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

We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system. ~ Ben Bernanke

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

It's the price of success: people start to think you're omnipotent. ~ Ben Bernanke

As we try to make the financial system safer, we must inevitably confront the problem of moral hazard. ~ Ben Bernanke

If Wall Street crashes, does Main Street follow? Not necessarily. ~ Ben Bernanke

Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But 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. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. ~ Ben Bernanke

Sector-specific price declines, uncomfortable as they may be for producers in that sector, are generally not a problem for the economy as a whole and do not constitute deflation. ~ Ben Bernanke

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

In fact, the world needs more nerds. ~ Ben Bernanke

If Australia finds it has a strong Australian dollar, and it has higher unemployment, then it would have to respond, and that would either be by increasing domestic demand or by weakening its own currency. ~ Ben Bernanke

Well, the U.S., of course, is the world's largest economy. It's about a quarter of the world's output. It's also home to many of the largest financial institutions and financial markets. ~ Ben Bernanke

A little humility never hurts. ~ Ben Bernanke

I was a professor at Princeton University. And, in that capacity, I studied for many years the role of financial crisis in the economy. ~ Ben Bernanke

It must be awfully frustrating to get a small raise at work and then have it all eaten by a higher cost of commuting. ~ Ben Bernanke

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. ~ Ben Bernanke

A money-financed tax cut is essentially equivalent to Milton Friedman's famous 'helicopter drop' of money. ~ Ben Bernanke

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

The Federal Reserve has never suffered any losses in the course of its normal lending to banks and, now, to primary dealers. ~ Ben Bernanke

Because financially capable consumers ultimately contribute to a stable economic and financial system as well as improve their own financial situations, it's clear that the Federal Reserve has a significant stake in financial education. ~ Ben Bernanke

Banks will have to win the confidence of their customers through fair dealing, making good loans, and remaining financially healthy. ~ Ben Bernanke

If the fiscal cliff occurs, I don't think the Federal Reserve has the tools to offset that event. ~ Ben Bernanke

The Federal Reserve's job is to do the right thing, to take the long-run interest of the economy to heart, and that sometimes means being unpopular. But we have to do the right thing. ~ Ben Bernanke

All the Federal Reserve can do is make loans against collateral. ~ Ben Bernanke

The Federal Reserve can only buy Treasuries and agencies, and moreover quantitative easing typically involves buying longer-term Treasuries and agencies in terms of bills, for example. ~ Ben Bernanke

When historical relationships are taken into account, it is difficult to ascribe the house price bubble either to monetary policy or to the broader macroeconomic environment. ~ Ben Bernanke

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

The sources of deflation are not a mystery. Deflation is in almost all cases a side effect of a collapse of aggregate demand.. a drop in spending so severe that producers must cut prices on an ongoing basis in order to find buyers. ~ Ben Bernanke

Remember that physical beauty is evolution's way of assuring us that the other person doesn't have too many intestinal parasites. ~ Ben Bernanke

To minimize market uncertainty and achieve the maximum effect of its policies, the Federal Reserve is committed to providing the public as much information as possible about the uses of its balance sheet, plans regarding future uses of its balance sheet, and the criteria on which the relevant decisions are based. ~ Ben Bernanke

The benefit of appointing a hawkish central banker is the increased inflation-fighting credibility that such an appointment brings. ~ Ben Bernanke

[Virtual Currencies] may hold long-term promise, particularly if the innovations Promote a faster, more secure and more efficient payment system. ~ Ben Bernanke

Among other objectives, liquidity guidelines must take into account the risks that inadequate liquidity planning by major financial firms pose for the broader financial system, and they must ensure that these firms do not become excessively reliant on liquidity support from the central bank. ~ Ben Bernanke

When the economic well-being of their nation demanded a strong and creative response, my colleagues at the Federal Reserve ... mustered the moral courage to do what was necessary. ~ Ben Bernanke