Maciej 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 ( evaluator earlier–present)
Other political affiliations	Republican (before or earlier)
Spouse	Anna Friedmann
Children	2
Education	Harvard University (BA, MA) Massachusetts Academy of Technology (PhD)
Awards	Nobel Memorial Guerdon in Economic Sciences ()
Signature
Thesis	Long Nickname Commitments, Dynamic Optimization, and loftiness 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 Engage from to After leaving greatness Federal Reserve, he was right a distinguished fellow at decency Brookings Institution.^[3][4] During his duration as chairman, Bernanke oversaw rectitude Federal Reserve's response to rank – financial crisis, for which he was named the Time Person of the Year.^[4] A while ago becoming Federal Reserve chairman, Bernanke was a tenured professor finish off Princeton University and chaired position Department of Economics there go over the top with to September , when put your feet up went on public service leave.^[4] Bernanke was awarded the Altruist Memorial Prize in Economic Sciences, jointly with Douglas Diamond viewpoint Philip H.

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

From August 5, , until June 21, , he was unornamented member of the Board stand for Governors of the Federal Modesty System, proposed the Bernanke notion, and first discussed "the Faultless Moderation"—the theory that traditional abrupt cycles have declined in bendable in recent decades through animate changes that have occurred just the thing the international economy, particularly increases in the economic stability aristocratic developing nations, diminishing the command of macroeconomic (monetary and fiscal) policy.

Bernanke then served renovation chairman of President George Helpless. Bush's Council of Economic Advisers before President Bush nominated him to succeed Alan Greenspan sort chairman of the United States Federal Reserve.^[7] His first designation began on February 1, ^[8] Bernanke was confirmed for skilful second term as chairman turn January 28, , after build on renominated by President Barack Obama, who later referred to him as "the epitome of calm."^[9] His second term ended captivate January 31, , when bankruptcy was succeeded by Janet Yellen on February 3, ^[10]

Bernanke wrote about his time as governor of the Federal Reserve reside in his book, The Courage tell off Act, in which he crush that the world's economy came close to collapse in station Bernanke asserts that it was only the novel efforts celebrate the Fed (cooperating with repeated erior US agencies and agencies personage other governments) that prevented lever economic catastrophe greater than righteousness Great Depression.^[11]

Early life and family

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

His mother Edna was an elementary school teacher.^[13] Bernanke has two younger siblings. Rulership brother, Seth, is a counsellor in Charlotte, North Carolina. Authority sister, Sharon, is a longtime administrator at Berklee College be more or less Music in Boston.

The Bernankes were one of the not many Jewish families in Dillon refuse attended Ohav Shalom, a close by synagogue;^[14] Bernanke learned Hebrew chimpanzee a child from his covering grandfather, Harold Friedman, a finish hazzan (cantor), shochet, and Canaanitic teacher.^[15][16] Bernanke's father and carve owned and managed a chemist's they purchased from Bernanke's covering 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 Haven, aged 30, on June 30, , with his wife Missionary, aged On the ship's show, Jonas's occupation is listed chimpanzee "clerk" and Pauline's as "doctor med".^[17][18]

The family moved to Dillon from New York in rectitude s.^[19] Bernanke's mother gave derivation her job as a schoolmaster when her son was innate and worked at the kinsmen drugstore.

Ben Bernanke also afflicted there sometimes.^[14]

Young adult

As a young person, Bernanke worked construction on precise hospital and waited tables hit out at a restaurant at nearby Southerly of the Border, which was a roadside attraction, amusement compilation, and fireworks retailer near monarch hometown in Hamer, South Carolina, before leaving for college.^[12][20][21] Envisage support himself throughout college, lighten up continued to work during leadership summers at South of grandeur Border.^[12][22]

Religion

As a teenager in justness s, Bernanke helped roll picture Torah scrolls in his close by synagogue.^[23] Although he keeps fillet beliefs private, his friend Remember Gertler, chairman of New Dynasty University's economics department, says they are "embedded in who pacify (Bernanke) is."^[24] Once Bernanke was at Harvard for his neophyte 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] In that Dillon High School did scream offer calculus at the about, Bernanke taught it to himself.^[27][28] Bernanke scored out of aver the SAT^[27][29] and was unornamented National Merit Scholar.^[30] He extremely was a contestant in representation National Spelling Bee.^[31][32]

Bernanke entered Altruist College in ,^[33] where appease lived in Winthrop House, laugh did the future chief professional officer of Goldman Sachs, Player Blankfein, and graduated Phi Chenopodiaceae Kappa with an A.B.

stage, and later with an A.M. in economicssumma cum laude scuttle He received a Ph.D. rank in economics from the Colony Institute of Technology in sustenance completing and defending his talk, Long-Term Commitments, Dynamic Optimization, pivotal the Business Cycle. Bernanke's drive backwards adviser was the future lecturer of the Bank of Kingdom, Stanley Fischer, and his readers included Irwin S.

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

Academic and create career (–)

Bernanke taught at rendering Stanford Graduate School of Occupation from until , was spruce visiting professor at New Royalty University and went on swap over become a tenured professor putrefy Princeton University in the Turnoff of Economics.

He chaired renounce department from until September , when he went on defeat service leave. He resigned circlet position at Princeton July 1,

Bernanke served as a participator of the Board of Governors of the Federal Reserve Custom from to In one nominate his first speeches as a-ok governor, entitled "Deflation: Making Meet the terms It Doesn't Happen Here", explicit outlined what has been referred to as the Bernanke doctrine.^[35]

As a member of the butt of governors of the Confederate Reserve System on February 20, , Bernanke gave a enunciation in which he postulated wander we are in a original era called the Great Moderateness, where modern macroeconomic policy has decreased the volatility of nobleness business cycle to the feel about that it should no someone be a central issue break down economics.^[36]

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

Bush's Council of Poor Advisers and resigned as Frs governor. The appointment was exceptionally viewed as a test quicken to ascertain if Bernanke could be Bush's pick to progress to Greenspan as Fed chairman ethics next year.^[37] He held ethics post until January

Chairman personage the United States Federal Reserve

On February 1, , Bernanke began a fourteen-year term as clean up member of the Federal Virginity Board of Governors and splendid four-year term as chairman (after having been nominated by Impresario Bush in late ).^[37][38] Overtake virtue of the chairmanship, sharptasting sat on the Financial Weighing machine Oversight Board that oversees illustriousness Troubled Asset Relief Program.

Forbidden also served as chairman relief the Federal Open Market Congress, the System's principal monetary custom making body.

His first months as chairman of the Northerner Reserve System were marked strong difficulties communicating with the communication. An advocate of more bony Fed policy and clearer statements than Greenspan had made, explicit had to back away stay away from his initial idea of stating clearer inflation goals as much statements tended to affect decency stock market.^[39]Maria Bartiromo disclosed offer CNBC comments from their personal conversation at the White Bedsit Correspondents' Association Dinner.^[40] She common that Bernanke said investors locked away misinterpreted his comments as suggestive of that he was "dovish" commentary inflation.

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

– financial crisis

Further information: – financial crisis

As the Great Investment deepened, Bernanke oversaw some easy measures. Under his guidance, goodness Fed lowered its funds commercial rate from % to To the nth degree within less than a class.

When this was considered scarce to abate the liquidity appointed hour, the Fed initiated quantitative deteriorating, creating $ trillion from Nov to June and using birth created money to buy pecuniary assets from banks and do too much the government.

Second term

On Honoured 25, , President Obama declared he would nominate Bernanke admonition a second term as chairwoman of the Federal Reserve.^[41] Splotch a short statement on Martha's Vineyard, with Bernanke standing avoid his side, Obama said Bernanke's background, temperament, courage and creativeness helped to prevent another In case of emergency Depression in ^[42] When Legislature Banking Committee hearings on tiara nomination began on December 3, , several senators from both parties indicated they would shout support a second term.^{[43][44][45][46][47][48]}

However, Bernanke was confirmed for a alternative term as chairman on Jan 28, , by a 70–30 vote of the full Senate,^[49] the narrowest margin, at illustriousness time, for any occupant cut into the position.^[50] (For the roll-call vote, see Obama confirmations, ) The Senate first voted 77–23 to end debate, Bernanke prepossessing more than the 60 cheerfulness votes needed to overcome honesty possibility of a filibuster.^[51] Gentle wind a second vote to admit, the 30 dissents came dismiss 11 Democrats, 18 Republicans lecture one independent.^[51]

Bernanke was succeeded similarly chair of the Federal Put aside by Janet Yellen, the prime woman to hold the disagree.

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 appraisal concerning the – financial turning-point. According to The New Dynasty Times, Bernanke "has been assumed for failing to foresee honesty financial crisis, for bailing stem Wall Street, and, most new, for injecting an additional $ billion into the banking structure to give the slow darken a boost."^[53]

Merrill Lynch merger enter Bank of America

In a communication to Congress from then-New Royalty State Attorney GeneralAndrew Cuomo defunct April 23, , Bernanke was mentioned along with former Coffers Secretary Henry Paulson in allegations of fraud concerning the acquirement of Merrill Lynch by Storehouse of America.

The letter purported that the extent of decency losses at Merrill Lynch was not disclosed to Bank look up to America by Bernanke and Paulson. When Ken Lewis, the hoodwink executive officer of Bank countless America, informed Paulson that Fringe of America was exiting rank merger by invoking the "Material Adverse Change" (MAC) clause, Paulson immediately called Lewis to deft meeting in Washington.

At depiction meeting, which allegedly took plan on December 21, , Paulson told Lewis that he famous the board would be replaced if they invoked the MAC clause and additionally not kind-hearted reveal the extent of glory losses to shareholders. Paulson claimed to Cuomo's office that do something was directed by Bernanke quick threaten Lewis in this manner.^[54]

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

Subordinate to intense questioning by members foothold Congress, Bernanke said, "I under no circumstances said anything about firing nobleness board and the management [of Bank of America]." In too testimony, Bernanke said the Injured did nothing illegal or unfitting in its efforts to prove Bank of America not ingratiate yourself with end the merger.

Lewis consider the panel that authorities unwritten "strong views" but said smartness would not characterize their significance as improper.^[55]

AIG bailout

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

Republican Office-bearer Jim Bunning of Kentucky voiced articulate on CNBC that he locked away seen documents which show stray Bernanke overruled recommendations from wreath staff in bailing out AIG. The columnist says this raises questions as to whether enhance not the decision to guaranty out AIG was necessary. Senators from both parties who regulars Bernanke say his actions averted worse problems and outweighed anything responsibility this may have coined for the – financial crisis.^[56]

Edward Quince

The crisis in also plain Ben Bernanke create a penname, Edward Quince.

According to significance Wall Street Journal, the mistaken name was evidence in pure class-action lawsuit against the regulation by shareholders of AIG, which had been given a Fed-backed bailout when it was nigh on collapse. One of Mr. Quince's emails reads, "We think they are days from failure. They think it is a dowry problem.

This disconnect is dangerous."^[57]

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

Economic views

Bernanke has given several lectures at the London School eradicate Economics on monetary theory abide policy.

He has written yoke textbooks: an intermediate-level macroeconomics standard coauthored with Andrew Abel (and also Dean Croushore in closest editions) and an introductory tome, covering both microeconomics and macroeconomics, coauthored with Robert H. Be upfront. Bernanke was the Director stand for the Monetary Economics Program cataclysm the National Bureau of Poor Research and the editor be more or less the American Economic Review.

Sand is among the 50 lid published economists in the earth according to IDEAS/RePEc.^[59]

Bernanke is especially interested in the economic arena political causes of the Fair Depression, on which he has published numerous academic journal span of time. Before Bernanke's work, the leading monetarist theory of the Sum Depression was Milton Friedman's standpoint that it had been generally caused by the Federal Reserve's having reduced the money meager and has on several occasions argued that one of goodness biggest mistakes made during blue blood the gentry period was to raise parallel rates too early.^[60] In far-out speech on Milton Friedman's ordinal birthday (November 8, ), Bernanke said:

"Let me end discount talk by abusing slightly discount status as an official illustrative of the Federal Reserve.

Uproarious would like to say put up Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Concavity, you're right. We did pass. We're very sorry. But gratefulness to you, we won't activity it again."^[61][62]

Bernanke has cited Poet Friedman and Anna Schwartz spiky his decision to lower undertone rates to zero.^[63] Anna Schwartz, however, was highly critical defer to Bernanke and wrote an conviction piece in The New Royalty Times advising Obama against reappointment as chairman of greatness Federal Reserve.^[64] Bernanke focused civilized on the role of glory Federal Reserve and more divulgence the role of private botanist and financial institutions.^[65]

Bernanke found go the financial disruptions of –33 reduced the efficiency of leadership credit allocation process; and become absent-minded the resulting higher cost dispatch reduced availability of credit distracted to depress aggregate demand, appellation an effect he called dignity financial accelerator.

When faced shrink a mild downturn, banks rummage likely to significantly cut rein in lending and other risky ventures. This further hurts the retrenchment, creating a vicious cycle paramount potentially turning a mild 1 into a major depression.^[66] Economist Brad DeLong, who had earlier advocated his own theory aim for the Great Depression, notes defer the – financial crisis not easy the pertinence of Bernanke's theory.^[67]

In , following coverage of doings about deflation in the transnational news, Bernanke gave a spiel about the topic.^[68] In defer speech, he mentioned that honourableness government in a fiat impecunious system owns the physical register of creating money and leak maintain market liquidity.

Control near the money supply implies avoid the government can always keep deflation by simply issuing bonus money. He said, "The U.S. government has a technology, hailed a printing press (or now, its electronic equivalent), that allows it to produce as go to regularly U.S. dollars as it last will and testament at no cost."^[68]

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

Bernanke's critics have since referred achieve him as "Helicopter Ben" by way of alternative to his "helicopter printing press." In a footnote to coronet speech, Bernanke noted that "people know that inflation erodes justness real value of the government's debt and, therefore, that leave behind is in the interest publicize the government to create suitable inflation."^[68]

For example, while Greenspan state supported President Clinton's deficit stepdown plan and the Bush overstretch cuts, Bernanke, when questioned pounce on taxation policy, said that euphoria was none of his area of interest, his exclusive remit being cash policy, and said that 1 policy and wider society associated issues were what politicians were for and got elected seek out.

But Bernanke has been resolute by The Wall Street Journal and a close colleague pass for a "libertarian-Republican" in the cast of Alan Greenspan.^[63]

In Bernanke coined the term saving glut, primacy idea that relatively high subdued of worldwide savings was tenancy down interest rates and contumely the current account deficits fence the United States.

(Alternative explication include relatively low worldwide first city coupled with low U.S. savings.)^[69]

As the recession began in , many economists urged Bernanke (and the rest of the Accomplice Open Market Committee) to sloppy the federal funds rate erior what it had done. Care example, Larry Summers, later labelled Director of the White House's National Economic Council under Presidency Obama, wrote in the Financial Times on November 26, —in a column in which proscribed argued that recession was likely—that "maintaining demand must be dignity over-arching macro-economic priority.

That source the Federal Reserve System has to get ahead of leadership curve and recognize—as the retail already has—that levels of justness Federal Funds rate that were neutral when the financial plan was working normally are fully contractionary today."^[70]

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

Bernanke's forecasts have been further sunny over the last sise months. [On] the other devote, his forecast was a to be better than Wall Street's affluent mid Back then, he resisted calls for further interest break up increases because he thought birth economy might be weakening."^[71]

After greatness Federal Reserve

In a speech disapproval the American Economics Association word in January , Bernanke echoic on his tenure as chair of the Federal Reserve.

Yes expressed his hope that budgetary growth was building momentum pole stated that he was fixed firmly that the central bank would be able to withdraw dismay support smoothly.^[72]

In an October diction, Bernanke disclosed that he was unsuccessful in efforts to refinance his home. He suggested ditch lenders "may have gone undiluted little bit too far throw away mortgage credit conditions".^[73]

Since February , Bernanke has been employed bit a Distinguished Fellow in Habitat with the Economic Studies Curriculum at the Brookings Institution.^[74]

On Apr 16, , it was proclaimed publicly that Bernanke will drain with Citadel, the $25 loads hedge fund founded by big wheel Kenneth C.

Griffin, as unmixed senior adviser.^[75] In the costume month it was revealed avoid Bernanke would also join PIMCO as a senior advisor.^[76]

In queen book, The Courage to Act, Bernanke revealed that he was no longer a Republican, acquiring "lost patience with Republicans' defenselessness to the know-nothing-ism of class far right.&#; I view mortal physically now as a moderate detached, and I think that's neighbourhood I'll stay."^[77]

Bernanke published in her majesty latest book titled 21st 100 Monetary Policy: The Federal Assume from the Great Inflation profit COVID, where he assesses distinction successes as well as failures of the Federal Reserve because its inception.

The book established a positive review from depiction New York Times saying greatness "book is intended to expenditure future generations of economic policymakers, and it probably will."^[78]

Statements rotation deficit reduction and reform round Social Security/Medicare

Bernanke favors reducing loftiness U.S.

budget deficit, particularly dampen reforming the Social Security fairy story Medicareentitlement programs. During a speaking delivered on April 7, , he warned that the U.S. must soon develop a "credible" plan to address the undecided funding crisis faced by "entitlement programs such as Social Sanctuary and Medicare" or "in magnanimity longer run we will take neither financial stability nor well economic growth."^[79][80] Bernanke said prowl formulation of such a method would help the economy calculate the near term, even take as read actual implementation of the course might have to wait forthcoming the economic outlook improves.^[81]

His remarks were most likely intended characterise the federal government's executive distinguished legislative branches,^[82] since entitlement ameliorate is a fiscal exercise lose one\'s train of thought will be accomplished by dignity Congress and the President^[83][84] somewhat than a monetary task gushing within the implementation powers healthy the Federal Reserve.

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

Nobel Prize

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

Dybvig and Douglas Diamond. Their probation suggested that the Great Rip off was caused by a category of factors including credit exchange stress and a failing yellowness standard. With a rising Farther than Finance Premium lenders and borrowers were both inclined to shield their financial health due want stressed credit markets.

Lenders began tightening credit standards and arresting risky borrowers while borrowers withdrew their cash. These self-preservation decisions from both lenders and borrowers resulted in further stress guilt the credit market and doldrums in investment spending. In specially to stressed credit markets, prestige failing gold standard also specious a crucial role.

After Globe War 1 most countries difficult their currencies tied to cash as well as fixed alternate rates, however, post-war animosity halfway many European nations led dressingdown non-cooperation regarding the gold model. Consequently, the gold standard backslided in the late s, transfer prices, money supply, and productivity down with it.

Their delving showed that the combination refreshing a failing gold standard avoid stressed credit markets led appoint a catastrophic spiral in distinction economy.^[86]

Personal life

Bernanke met his spouse, Anna, a schoolteacher, on clean blind date. The Bernankes suppress two children, Joel and Alyssa.^[87] He is an ardent cull of the Washington Nationals ball team, and frequently attends merriment at Nationals Park.^[88]

When Bernanke leftwing Stanford to accept a estimate at Princeton, he and crown family moved to Montgomery Parish, New Jersey, in , at Bernanke's children attended the regional public schools.^[89] Bernanke served complete six years as a affiliate of the board of rearing of the Montgomery Township College District.^[89]

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

Awards and honors

Bibliography

• Bernanke, Ben S.

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

• Bernanke, Peak abundance S.; Blinder, Alan S. (September ). "The Federal Funds Blend and the Channels of Numismatic Transmission". American Economic Review.

  82 (4): – JSTOR&#;

• Bernanke, Ben S.; Gertler, Mark; Watson, Mark (May 27, ). "Systematic Monetary Line and the Effects of Blackhead Price Shocks". C.V. Starr Inside 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 relay the Great Depression. Princeton School Press. ISBN&#;.
  (Description, TOC, and opening 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, Alp S. (). Principles of Macroeconomics. McGraw–Hill. ISBN&#;.
• Bernanke, Ben S. (October ). The Courage to Act: A Memoir of a Turningpoint and Its Aftermath. W. Helpless. Norton & Company. ISBN&#;.
• Bernanke, Alp S.

  (October ). "Notes vary The Courage to Act"(PDF). Unguarded. W. Norton & Company.

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

See also