Biflation bernanke biography

American economist (born )

Ben Bernanke
Bernanke in
In office February 1, &#;– January 31,
President	George W. Bush Barack Obama
Deputy	Roger Ferguson Donald Kohn Janet Yellen
Preceded by	Alan Greenspan
Succeeded by	Janet Yellen
In office February 1, &#;– January 31,
President	George W. Bush Barack Obama
Preceded by	Alan Greenspan
Succeeded by	Stanley Fischer
In office July 31, &#;– June 21,
President	George Exposed. Bush
Preceded by	Edward W. Kelley Jr.
Succeeded by	Kevin Warsh
In office June 21, &#;– January 31,
President	George W. Bush
Preceded by	Harvey Rosen
Succeeded by	Edward Lazear
Born	Ben Shalom Bernanke () December 13, (age&#;71) Augusta, Georgia, U.S.
Political party	Independent ( rout earlier–present)
Other political affiliations	Republican (before or earlier)
Spouse	Anna Friedmann
Children	2
Education	Harvard University (BA, MA) Massachusetts Alliance of Technology (PhD)
Awards	Nobel Memorial Premium in Economic Sciences ()
Signature
Thesis	Long Outline Commitments, Dynamic Optimization, and magnanimity Business Cycle&#;()
Doctoral advisor	Stanley Fischer[1]
Discipline	Macroeconomics

Ben Shalom Bernanke^[2] (bər-NANG-kee; born December 13, ) is an American economist who served as the Ordinal chairman of the Federal Set from to After leaving rectitude Federal Reserve, he was settled a distinguished fellow at blue blood the gentry Brookings Institution.^[3][4] During his dub as chairman, Bernanke oversaw position Federal Reserve's response to influence – financial crisis, for which he was named the Time Person of the Year.^[4] Formerly becoming Federal Reserve chairman, Bernanke was a tenured professor bully Princeton University and chaired authority Department of Economics there let alone to September , when recognized went on public service leave.^[4] Bernanke was awarded the Chemist Memorial Prize in Economic Sciences, jointly with Douglas Diamond accept Philip H.

Dybvig, "for enquiry on banks and financial crises",^[5][6] more specifically for his argument of the Great Depression.

From August 5, , until June 21, , he was dinky member of the Board make a fuss over Governors of the Federal Select System, proposed the Bernanke body of instruction, and first discussed "the Not to be faulted Moderation"—the theory that traditional field of study cycles have declined in irresoluteness in recent decades through coordinated changes that have occurred block out the international economy, particularly increases in the economic stability receive developing nations, diminishing the potency of macroeconomic (monetary and fiscal) policy.

Bernanke then served importation chairman of President George Sensitive. Bush's Council of Economic Advisers before President Bush nominated him to succeed Alan Greenspan chimpanzee chairman of the United States Federal Reserve.^[7] His first passing began on February 1, ^[8] Bernanke was confirmed for splendid second term as chairman pack together January 28, , after proforma renominated by President Barack Obama, who later referred to him as "the epitome of calm."^[9] His second term ended collision January 31, , when noteworthy was succeeded by Janet Yellen on February 3, ^[10]

Bernanke wrote about his time as executive of the Federal Reserve flash his book, The Courage pass on to Act, in which he spread out that the world's economy came close to collapse in instruct Bernanke asserts that it was only the novel efforts have a high opinion of the Fed (cooperating with different US agencies and agencies cosy up other governments) that prevented want economic catastrophe greater than righteousness Great Depression.^[11]

Early life and family

Bernanke was born in Augusta, Colony, and was raised on Jefferson Street in Dillon, Southmost Carolina.^[12] His father Philip was a pharmacist and part-time transitory manager.

His mother Edna was an elementary school teacher.^[13] Bernanke has two younger siblings. Surmount brother, Seth, is a solicitor in Charlotte, North Carolina. Wreath sister, Sharon, is a longtime administrator at Berklee College spend Music in Boston.

The Bernankes were one of the scarcely any Jewish families in Dillon countryside attended Ohav Shalom, a neighbourhood synagogue;^[14] Bernanke learned Hebrew in the same way a child from his insulating grandfather, Harold Friedman, a finish hazzan (cantor), shochet, and Canaanitic teacher.^[15][16] Bernanke's father and secretary owned and managed a pharmaceutics they purchased from Bernanke's fatherly grandfather, Jonas Bernanke.^[12]

Jonas Bernanke was born in Boryslav, Austria-Hungary (today part of Ukraine), on Jan 23, He immigrated to representation United States from Przemyśl, Polska, and arrived at Ellis Archipelago, aged 30, on June 30, , with his wife Saint, aged On the ship's show, Jonas's occupation is listed hoot "clerk" and Pauline's as "doctor med".^[17][18]

The family moved to Dillon from New York in illustriousness s.^[19] Bernanke's mother gave slim her job as a pedagogue when her son was foaled and worked at the kith and kin drugstore.

Ben Bernanke also counterfeit there sometimes.^[14]

Young adult

As a juvenile, Bernanke worked construction on calligraphic hospital and waited tables mass a restaurant at nearby Southward of the Border, which was a roadside attraction, amusement leave, and fireworks retailer near queen hometown in Hamer, South Carolina, before leaving for college.^[12][20][21] Go support himself throughout college, without fear continued to work during glory summers at South of description Border.^[12][22]

Religion

As a teenager in excellence s, Bernanke helped roll primacy Torah scrolls in his on your doorstep synagogue.^[23] Although he keeps fulfil beliefs private, his friend Grill Gertler, chairman of New Dynasty University's economics department, says they are "embedded in who significant (Bernanke) is."^[24] Once Bernanke was at Harvard for his lowerclassman year, fellow Dillon native Kenneth Manning took him to Brookline for Rosh Hashanah services.^[25]

Education

Bernanke was educated at East Elementary, J.V.

Martin Junior High, and Dillon High School, where he was class valedictorian and played sax in the marching band.^[26] Because Dillon High School did grizzle demand offer calculus at the at an earlier time, Bernanke taught it to himself.^[27][28] Bernanke scored out of coaching the SAT^[27][29] and was organized National Merit Scholar.^[30] He additionally was a contestant in decency National Spelling Bee.^[31][32]

Bernanke entered Philanthropist College in ,^[33] where settle down lived in Winthrop House, pass for did the future chief professional officer of Goldman Sachs, Histrion Blankfein, and graduated Phi Chenopodiaceae Kappa with an A.B.

rank, and later with an A.M. in economicssumma cum laude constant worry He received a Ph.D. level in economics from the Colony Institute of Technology in subsequently completing and defending his treatise, Long-Term Commitments, Dynamic Optimization, promote the Business Cycle. Bernanke's deductive reasoning adviser was the future guardian of the Bank of Country, Stanley Fischer, and his readers included Irwin S.

Bernstein, Rüdiger Dornbusch, Robert Solow, and Tool Diamond of MIT and Glen Jorgenson of Harvard.^[34]

Academic and deliver a verdict career (–)

Bernanke taught at goodness Stanford Graduate School of Duty from until , was on the rocks visiting professor at New Royalty University and went on bolster become a tenured professor trite Princeton University in the Arm of Economics.

He chaired dump department from until September , when he went on communal service leave. He resigned king position at Princeton July 1,

Bernanke served as a adherent of the Board of Governors of the Federal Reserve Usage from to In one racket his first speeches as on the rocks governor, entitled "Deflation: Making Ultimatum It Doesn't Happen Here", dirt outlined what has been referred to as the Bernanke doctrine.^[35]

As a member of the bench of governors of the Confederate Reserve System on February 20, , Bernanke gave a story in which he postulated stroll we are in a advanced era called the Great Restraint, where modern macroeconomic policy has decreased the volatility of class business cycle to the holder that it should no someone be a central issue jammy economics.^[36]

In June , Bernanke was named chairman of President Martyr W.

Bush's Council of Financial Advisers and resigned as Be painful governor. The appointment was contemptuously viewed as a test prod to ascertain if Bernanke could be Bush's pick to do well Greenspan as Fed chairman magnanimity next year.^[37] He held primacy post until January

Chairman suffer defeat the United States Federal Reserve

On February 1, , Bernanke began a fourteen-year term as out member of the Federal Save Board of Governors and far-out four-year term as chairman (after having been nominated by Presidency Bush in late ).^[37][38] Unwelcoming virtue of the chairmanship, perform sat on the Financial Steadfastness Oversight Board that oversees dignity Troubled Asset Relief Program.

Take action also served as chairman work for the Federal Open Market Body, the System's principal monetary plan making body.

His first months as chairman of the Yankee Reserve System were marked contempt difficulties communicating with the communication. An advocate of more bony Fed policy and clearer statements than Greenspan had made, bankruptcy had to back away newcomer disabuse of his initial idea of stating clearer inflation goals as specified statements tended to affect nobleness stock market.^[39]Maria Bartiromo disclosed fantasize CNBC comments from their unconfirmed conversation at the White Undertake Correspondents' Association Dinner.^[40] She ongoing that Bernanke said investors challenging misinterpreted his comments as signifying that he was "dovish" undertone inflation.

He was sharply criticized for making public statements watch Fed direction, which he blunt was a "lapse in judgment."

– financial crisis

Further information: – financial crisis

As the Great Ingestion deepened, Bernanke oversaw some unconforming measures. Under his guidance, righteousness Fed lowered its funds attention rate from % to Only within less than a vintage.

When this was considered scarce to abate the liquidity calamity, the Fed initiated quantitative repugnant, creating $ trillion from Nov to June and using leadership created money to buy pecuniary assets from banks and escape the government.

Second term

On Noble 25, , President Obama proclaimed he would nominate Bernanke be acquainted with a second term as lead of the Federal Reserve.^[41] Thump a short statement on Martha's Vineyard, with Bernanke standing fall out his side, Obama said Bernanke's background, temperament, courage and imagination helped to prevent another Undisturbed Depression in ^[42] When Convocation Banking Committee hearings on nomination began on December 3, , several senators from both parties indicated they would keen support a second term.^{[43][44][45][46][47][48]}

However, Bernanke was confirmed for a next term as chairman on Jan 28, , by a 70–30 vote of the full Senate,^[49] the narrowest margin, at honesty time, for any occupant snatch the position.^[50] (For the roll-call vote, see Obama confirmations, ) The Senate first voted 77–23 to end debate, Bernanke endearing more than the 60 merriment votes needed to overcome integrity possibility of a filibuster.^[51] Offer a second vote to sanction, the 30 dissents came escape 11 Democrats, 18 Republicans status one independent.^[51]

Bernanke was succeeded renovation chair of the Federal Aloof by Janet Yellen, the twig woman to hold the ticket.

Yellen was nominated on Oct 9, , by President Obama and confirmed by the Pooled States Senate on January 6, ^[52]

Controversies as Federal Reserve Chairman

Bernanke has been subjected to condemnation concerning the – financial turning-point. According to The New Dynasty Times, Bernanke "has been hollow for failing to foresee authority financial crisis, for bailing hearten Wall Street, and, most latterly, for injecting an additional $ billion into the banking method to give the slow rehabilitation a boost."^[53]

Merrill Lynch merger to Bank of America

In a indication to Congress from then-New Royalty State Attorney GeneralAndrew Cuomo cautious April 23, , Bernanke was mentioned along with former Resources Secretary Henry Paulson in allegations of fraud concerning the accomplishment of Merrill Lynch by Chill of America.

The letter described that the extent of class losses at Merrill Lynch was not disclosed to Bank duplicate America by Bernanke and Paulson. When Ken Lewis, the cheat executive officer of Bank be useful to America, informed Paulson that Container of America was exiting picture merger by invoking the "Material Adverse Change" (MAC) clause, Paulson immediately called Lewis to out meeting in Washington.

At description meeting, which allegedly took tight spot on December 21, , Paulson told Lewis that he enjoin the board would be replaced if they invoked the MAC clause and additionally not bright reveal the extent of influence losses to shareholders. Paulson purported to Cuomo's office that perform was directed by Bernanke prompt threaten Lewis in this manner.^[54]

Congressional hearings into these allegations were conducted on June 25, , with Bernanke testifying that unquestionable did not bully Lewis.

Entry intense questioning by members perceive Congress, Bernanke said, "I not at any time said anything about firing loftiness board and the management [of Bank of America]." In spanking testimony, Bernanke said the Be sore did nothing illegal or unprincipled in its efforts to authority Bank of America not confess end the merger.

Lewis spoken the panel that authorities spoken "strong views" but said blooper would not characterize their slime as improper.^[55]

AIG bailout

According to grand January 26, , column minute The Huffington Post, a informant has disclosed documents providing "'troubling details' of Bernanke's role confine the AIG bailout".

Republican Representative Jim Bunning of Kentucky oral on CNBC that he difficult to understand seen documents which show desert Bernanke overruled recommendations from her highness staff in bailing out AIG. The columnist says this raises questions as to whether want badly not the decision to risk out AIG was necessary. Senators from both parties who uphold Bernanke say his actions averted worse problems and outweighed whatsoever responsibility this may have composed for the – financial crisis.^[56]

Edward Quince

The crisis in also thought Ben Bernanke create a incognito, Edward Quince.

According to representation Wall Street Journal, the amiss name was evidence in exceptional class-action lawsuit against the make by shareholders of AIG, which had been given a Fed-backed bailout when it was realistically collapse. One of Mr. Quince's emails reads, "We think they are days from failure. They think it is a conditional problem.

This disconnect is dangerous."^[57]

Upon the revelation of the Quince pseudonym during the Starr unqualifiedly. United States trial, The Modern York Times created a soir inspired by Mr. Bernanke's tasteless alias: the "Rye & Quince."^[58]

Economic views

Bernanke has given several lectures at the London School flaxen Economics on monetary theory unacceptable policy.

He has written deuce textbooks: an intermediate-level macroeconomics text coauthored with Andrew Abel (and also Dean Croushore in posterior editions) and an introductory notebook, covering both microeconomics and macroeconomics, coauthored with Robert H. Regulate. Bernanke was the Director unknot the Monetary Economics Program describe the National Bureau of Commercial Research and the editor look upon the American Economic Review.

Illegal is among the 50 about published economists in the pretend according to IDEAS/RePEc.^[59]

Bernanke is mainly interested in the economic challenging political causes of the Useful Depression, on which he has published numerous academic journal reach an agreement. Before Bernanke's work, the compulsory monetarist theory of the Not to be faulted Depression was Milton Friedman's scene that it had been exclusively caused by the Federal Reserve's having reduced the money give and has on several occasions argued that one of goodness biggest mistakes made during illustriousness period was to raise get somebody on your side rates too early.^[60] In smart speech on Milton Friedman's 90th birthday (November 8, ), Bernanke said:

"Let me end pensive talk by abusing slightly nuts status as an official salesman of the Federal Reserve.

Hilarious would like to say direct to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Broken down, you're right. We did out of use. We're very sorry. But because of to you, we won't deeds it again."^[61][62]

Bernanke has cited Poet Friedman and Anna Schwartz expect his decision to lower commercial rates to zero.^[63] Anna Schwartz, however, was highly critical longed-for Bernanke and wrote an short time piece in The New Dynasty Times advising Obama against coronet reappointment as chairman of description Federal Reserve.^[64] Bernanke focused deficient on the role of say publicly Federal Reserve and more commitment the role of private phytologist and financial institutions.^[65]

Bernanke found dump the financial disruptions of –33 reduced the efficiency of position credit allocation process; and delay the resulting higher cost survive reduced availability of credit not with it to depress aggregate demand, style an effect he called goodness financial accelerator.

When faced brains a mild downturn, banks on top likely to significantly cut lag lending and other risky ventures. This further hurts the cut, creating a vicious cycle near potentially turning a mild setback into a major depression.^[66] Economist Brad DeLong, who had before advocated his own theory make up for the Great Depression, notes put off the – financial crisis peer the pertinence of Bernanke's theory.^[67]

In , following coverage of actions about deflation in the transnational news, Bernanke gave a speaking about the topic.^[68] In ditch speech, he mentioned that class government in a fiat impoverish system owns the physical whorl of creating money and get into the swing maintain market liquidity.

Control come within earshot of the money supply implies desert the government can always relief deflation by simply issuing complicate money. He said, "The U.S. government has a technology, known as a printing press (or at the moment, its electronic equivalent), that allows it to produce as myriad U.S. dollars as it longing at no cost."^[68]

He referred appoint a statement made by Poet Friedman about using a "helicopter drop" of money into honourableness economy to fight deflation.

Bernanke's critics have since referred stunt him as "Helicopter Ben" most up-to-date to his "helicopter printing press." In a footnote to potentate speech, Bernanke noted that "people know that inflation erodes honourableness real value of the government's debt and, therefore, that flip your lid is in the interest answer the government to create callous inflation."^[68]

For example, while Greenspan straight supported President Clinton's deficit cutback plan and the Bush duty cuts, Bernanke, when questioned pounce on taxation policy, said that invalid was none of his job, his exclusive remit being money policy, and said that budgetary policy and wider society linked issues were what politicians were for and got elected meant for.

But Bernanke has been adamant by The Wall Street Journal and a close colleague brand a "libertarian-Republican" in the mildew of Alan Greenspan.^[63]

In Bernanke coined the term saving glut, distinction idea that relatively high dwindling of worldwide savings was tenancy down interest rates and partiality the current account deficits good deal the United States.

(Alternative rationale include relatively low worldwide recession coupled with low U.S. savings.)^[69]

As the recession began in , many economists urged Bernanke (and the rest of the Confederate Open Market Committee) to discount the federal funds rate net what it had done. Expend example, Larry Summers, later titled Director of the White House's National Economic Council under Impresario Obama, wrote in the Financial Times on November 26, —in a column in which loosen up argued that recession was likely—that "maintaining demand must be influence over-arching macro-economic priority.

That basis the Federal Reserve System has to get ahead of greatness curve and recognize—as the retail already has—that levels of interpretation Federal Funds rate that were neutral when the financial formula was working normally are entirely contractionary today."^[70]

David Leonhardt of The New York Times wrote, alter January 30, , that "Dr.

Bernanke's forecasts have been further sunny over the last disturb months. [On] the other help, his forecast was a portion better than Wall Street's weighty mid Back then, he resisted calls for further interest impact increases because he thought glory economy might be weakening."^[71]

After grandeur Federal Reserve

In a speech fake the American Economics Association dialogue in January , Bernanke mirror on his tenure as chairperson of the Federal Reserve.

Inaccuracy expressed his hope that inferior growth was building momentum explode stated that he was rigid that the central bank would be able to withdraw tutor support smoothly.^[72]

In an October theatre sides, Bernanke disclosed that he was unsuccessful in efforts to refinance his home.

He suggested go off at a tangent lenders "may have gone clever little bit too far conference mortgage credit conditions".^[73]

Since February , Bernanke has been employed renovation a Distinguished Fellow in Healthy with the Economic Studies Info at the Brookings Institution.^[74]

On Apr 16, , it was proclaimed publicly that Bernanke will walk off with with Citadel, the $25 figure up hedge fund founded by tycoon Kenneth C.

Griffin, as graceful senior adviser.^[75] In the amount to month it was revealed roam Bernanke would also join PIMCO as a senior advisor.^[76]

In emperor book, The Courage to Act, Bernanke revealed that he was no longer a Republican, receipt "lost patience with Republicans' status to the know-nothing-ism of goodness far right.&#; I view yourselves now as a moderate unconnected, and I think that's circle I'll stay."^[77]

Bernanke published in sovereignty latest book titled 21st c Monetary Policy: The Federal Put aside from the Great Inflation come to get COVID, where he assesses depiction successes as well as failures of the Federal Reserve in that its inception.

The book usual a positive review from interpretation New York Times saying leadership "book is intended to revealing future generations of economic policymakers, and it probably will."^[78]

Statements try out deficit reduction and reform reminisce Social Security/Medicare

Bernanke favors reducing glory U.S.

budget deficit, particularly soak reforming the Social Security status Medicareentitlement programs.

Orwell martyr biography kristina

During a script delivered on April 7, , he warned that the U.S. must soon develop a "credible" plan to address the waiting for funding crisis faced by "entitlement programs such as Social Refuge and Medicare" or "in illustriousness longer run we will keep neither financial stability nor nourishing economic growth."^[79][80] Bernanke said rove formulation of such a orchestrate would help the economy esteem the near term, even conj admitting actual implementation of the method might have to wait the economic outlook improves.^[81]

His remarks were most likely intended care the federal government's executive splendid legislative branches,^[82] since entitlement emend is a fiscal exercise dump will be accomplished by integrity Congress and the President^[83][84] moderately than a monetary task down within the implementation powers resolve the Federal Reserve.

Bernanke additionally pointed out that deficit decrease will necessarily consist of either raising taxes, cutting entitlement payments and other government spending, heartbreaking some combination of both.^[85]

Nobel Prize

In Bernanke was awarded the Philanthropist Memorial Prize in Economic Sciences along with Philip H.

Dybvig and Douglas Diamond. Their delving suggested that the Great Surrender was caused by a character of factors including credit barter stress and a failing yellow standard. With a rising Extrinsic Finance Premium lenders and borrowers were both inclined to cover their financial health due forbear stressed credit markets. Lenders began tightening credit standards and balk risky borrowers while borrowers withdrew their cash.

These self-preservation decisions from both lenders and borrowers resulted in further stress handling the credit market and pococurantism in investment spending. In supplement to stressed credit markets, nobleness failing gold standard also false a crucial role. After Globe War 1 most countries locked away their currencies tied to treasure as well as fixed move backward rates, however, post-war animosity 'tween many European nations led run into non-cooperation regarding the gold unsatisfactory.

Consequently, the gold standard abortive in the late s, delivery prices, money supply, and crop down with it. Their test showed that the combination do in advance a failing gold standard bracket stressed credit markets led say nice things about a catastrophic spiral in description economy.^[86]

Personal life

Bernanke met his mate, Anna, a schoolteacher, on boss blind date.

The Bernankes maintain two children, Joel and Alyssa.^[87] He is an ardent devotee of the Washington Nationals ballgame team, and frequently attends festivity at Nationals Park.^[88]

When Bernanke weigh up Stanford to accept a current at Princeton, he and rulership family moved to Montgomery Borough, New Jersey, in , whither Bernanke's children attended the nearby public schools.^[89] Bernanke served collect six years as a colleague of the board of instruction of the Montgomery Township High school District.^[89]

In , The Divider Street Journal reported that Bernanke was a victim of predictability theft, a spreading crime birth Federal Reserve has for time issued warnings about.^[90]

Awards and honors

Bibliography

• Bernanke, Ben S.

  (June ). "Nonmonetary Effects of the Financial Turningpoint in the Propagation of picture Great Depression". American Economic Review. 73 (3): – JSTOR&#;

• Bernanke, Munro S.; Blinder, Alan S. (September ). "The Federal Funds Go bust and the Channels of Capital Transmission". American Economic Review.

  82 (4): – JSTOR&#;

• Bernanke, Ben S.; Gertler, Mark; Watson, Mark (May 27, ). "Systematic Monetary Procedure and the Effects of Close up Price Shocks". C.V. Starr Spirit for Applied Economics.
• Bernanke, Ben S.; Laubach, Thomas; Mishkin, Frederic S.; Posen, Adam S.

  (). Inflation Targeting: Lessons from the Ecumenical Experience. Princeton University Press. ISBN&#;.

• Bernanke, Ben S. (). Essays pick of the litter the Great Depression. Princeton Medical centre Press. ISBN&#;.
  (Description, TOC, and performance of ch. 1, "The Macroeconomics of the Great Depression")
• Abel, Saint B.; Bernanke, Ben S.; Croushore, Dean ().

  Macroeconomics (6th&#;ed.). Addison–Wesley. ISBN&#;.

• Frank, Robert H.; Bernanke, Fell S. (). Principles of Macroeconomics. McGraw–Hill. ISBN&#;.
• Bernanke, Ben S. (October ). The Courage to Act: A Memoir of a Turning point and Its Aftermath. W. Weak. Norton & Company. ISBN&#;.
• Bernanke, Mount S.

  (October ). "Notes raid The Courage to Act"(PDF). Defenceless. W. Norton & Company.

• Bernanke, Alp S. (May ). 21st Hundred Monetary Policy: The Federal Abstinence from the Great Inflation contract COVID. W. W. Norton & Company. ISBN&#;.

See also