The Continental Economics Institute Currency Review
Friday, August 26, 2011
Playing with our monies as if it were his toys
Bernanke Scholar Advises Bernanke Fed Chief to Be Bold on Monetary Policy
By Jeannine Aversa - Aug 26, 2011 11:28 AM GMT-0300
Ben S. Bernanke while Professor of Economics, Princeton University Source: Princeton University/ Bloomberg
Advice from Ben S. Bernanke, scholar, to Ben S. Bernanke, Federal Reserve chairman: Be bold.
As a Princeton economics professor from 1985 to 2002 and a Fed governor from 2002 to 2005, Bernanke -- a student of the Great Depression and Japan’s lost decade -- faulted central bankers for failing to act aggressively in both cases to provide credit and weed out sickly financial institutions as they tried to rescue their economies and combat deflation. More Comment: A wrong model in active hands is probably the worst that could have happened.