American - Public | December 13, 1953 -
Fostering transparency and accountability at the Federal Reserve was one of my principal objectives when I became Chairman in February 2006.
Ben Bernanke
AccountabilityFebruaryTransparency
The Federal Reserve, like other central banks, wields powerful tools; democratic accountability requires that the public be able to see how and for what purposes those tools are being used.
AccountabilityToolsPowerfulSee
At the most basic level, a central bank must be clear and open about its actions and operations, particularly when they involve the deployment of public funds.
BankOpenOperationsLevelClear
Monetary policy has less room to maneuver when interest rates are close to zero, while expansionary fiscal policy is likely both more effective and less costly in terms of increased debt burden when interest rates are pinned at low levels.
BurdenDebtMorePolicyRoomLow
Most of the policies that support robust economic growth in the long run are outside the province of the central bank.
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Of course, economic forecasts must be revised when new information arrives and are thus necessarily provisional.
InformationNewEconomicMustCourse
As we try to make the financial system safer, we must inevitably confront the problem of moral hazard.
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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.
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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.
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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.
DataNewYearsComingEconomists
Evolutionary psychologists suggest that humans experienced evolutionary benefits from brain developments that included aversion to loss and risk and from instincts for cooperation that helped strengthen communities.
BrainLossCooperationRiskBenefits
There will not be an automatic increase in interest rate when unemployment hits 6.5%.
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