American - Public | December 13, 1953 -
Imperfect substitutability of assets implies that changes in the supplies of various assets available to private investors may affect the prices and yields of those assets.
Ben Bernanke
ChangesAffectMayAvailableAssets
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.
CommunicationImportantAlwaysPolicy
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.
EducationFinancialCapableImprove
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.
StrongAustraliaDollarRespondOwn
The Libor system is structurally flawed. It is a major problem for our financial system and for the confidence in the financial system. We need to address it.
ConfidenceFinancialProblemNeed
One would be forgiven for concluding that the assumed benefits of financial innovation are not all they were cracked up to be.
InnovationFinancialUpBenefits
The Fed needs an approach that consolidates the gains of the Greenspan years and ensures that those successful policies will continue - even if future Fed chairmen are less skillful or less committed to price stability than Mr. Greenspan has been.
FuturePriceWillYearsSuccessful
Given the extent of the exposures of major banks around the world to A.I.G., and in light of the extreme fragility of the system, there was a significant risk that A.I.G.'s failure could have sparked a global banking panic.
FailureLightWorldRiskSystem
A.I.G. was even larger than Lehman, with a substantial presence in derivatives and debt markets, as well as in insurance markets.
InsuranceDebtPresenceWellEven
The downturn following the collapse of Japan's so-called bubble economy of the 1980s was not as severe as the Great Depression.
GreatDepressionGreat Depression
Central bankers got it right in the United States in 1987 when they avoided deflationary pressures as well as serious trouble in the banking system.
TroubleSeriousRightSystemBanking
Low and stable inflation in many countries is an important accomplishment that will continue to bring significant benefits.
AccomplishmentImportantWillBring
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