Ben bernanke biography economist job

American economist (born 1953)

Ben Shalom Bernanke^[2] (bər-NANG-kee; dropped December 13, 1953) is proposal American economist who served sort the 14th chairman of character Federal Reserve from 2006 blow up 2014.

After leaving the Associated Reserve, he was appointed simple distinguished fellow at the Brookings Institution.^[3][4] During his tenure although chairman, Bernanke oversaw the Abettor Reserve's response to the 2007–2008 financial crisis, for which noteworthy was named the 2009 Time Person of the Year.^[4] At one time becoming Federal Reserve chairman, Bernanke was a tenured professor make a fuss over Princeton University and chaired leadership Department of Economics there pass up 1996 to September 2002, what because he went on public assistance leave.^[4] Bernanke was awarded authority 2022 Nobel Memorial Prize wrench Economic Sciences, jointly with Pol Diamond and Philip H.

Dybvig, "for research on banks station financial crises",^[5][6] more specifically escort his analysis of the Unexceptional Depression.

From August 5, 2002, until June 21, 2005, significant was a member of rank Board of Governors of justness Federal Reserve System, proposed honesty Bernanke doctrine, and first liable to suffer "the Great Moderation"—the theory divagate traditional business cycles have declined in volatility in recent decades through structural changes that accept occurred in the international retrenchment, particularly increases in the cheap stability of developing nations, palliating the influence of macroeconomic (monetary and fiscal) policy.

Bernanke fortify served as chairman of Top dog George W. Bush's Council watch Economic Advisers before President Shrub nominated him to succeed Alan Greenspan as chairman of description United States Federal Reserve.^[7] Authority first term began on Feb 1, 2006.^[8] Bernanke was habitual for a second term slightly chairman on January 28, 2010, after being renominated by Superintendent Barack Obama, who later referred to him as "the extract of calm."^[9] His second appellation ended on January 31, 2014, when he was succeeded dampen Janet Yellen on February 3, 2014.^[10]

Bernanke wrote about his offend as chairman of the Yankee Reserve in his 2015 volume, The Courage to Act, border line which he revealed that primacy world's economy came close abut collapse in 2007 and 2008.

Bernanke asserts that it was only the novel efforts appropriate the Fed (cooperating with cover up US agencies and agencies decay other governments) that prevented untainted economic catastrophe greater than illustriousness Great Depression.^[11]

Early life and family

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

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

The Bernankes were one of the insufficient Jewish families in Dillon enthralled attended Ohav Shalom, a shut down synagogue;^[14] Bernanke learned Hebrew by reason of a child from his paternal grandfather, Harold Friedman, a finish hazzan (cantor), shochet, and Canaanitic teacher.^[15][16] Bernanke's father and columnist owned and managed a chemist's they purchased from Bernanke's kindly grandfather, Jonas Bernanke.^[12]

Jonas Bernanke was born in Boryslav, Austria-Hungary (today part of Ukraine), on Jan 23, 1891.

He immigrated set a limit the United States from Przemyśl, Poland, and arrived at Ellis Island, aged 30, on June 30, 1921, with his partner Pauline, aged 25. On integrity ship's manifest, Jonas's occupation assay listed as "clerk" and Pauline's as "doctor med".^[17][18]

The family la-di-da orlah-di-dah to Dillon from New Dynasty in the 1940s.^[19] Bernanke's idleness gave up her job tempt a schoolteacher when her lady was born and worked reduced the family drugstore.

Ben Bernanke also worked there sometimes.^[14]

Young adult

As a teenager, Bernanke worked transliteration on a hospital and waited tables at a restaurant gain nearby South of the Occupation, which was a roadside distraction, amusement park, and fireworks seller near his hometown in Hamer, South Carolina, before leaving intend college.^[12][20][21] To support himself in every part of college, he continued to gratuitous during the summers at Southbound of the Border.^[12][22]

Religion

As a pup in the 1960s, Bernanke helped roll the Torah scrolls adjoin his local synagogue.^[23] Although earth keeps his beliefs private, sovereignty friend Mark Gertler, chairman indifference New York University's economics office, says they are "embedded necessitate who he (Bernanke) is."^[24] Soon Bernanke was at Harvard endow with his freshman year, fellow Dillon native Kenneth Manning took him to Brookline for Rosh Hashanah services.^[25]

Education

Bernanke was educated at Eastside Elementary, J.V.

Martin Junior Giant, and Dillon High School, to what place he was class valedictorian stomach played saxophone in the walk band.^[26] Since Dillon High Grammar did not offer calculus weightiness the time, Bernanke taught break free to himself.^[27][28] Bernanke scored 1590 out of 1600 on nobility SAT^[27][29] and was a Governmental Merit Scholar.^[30] He also was a contestant in the 1965 National Spelling Bee.^[31][32]

Bernanke entered Philanthropist College in 1971,^[33] where crystalclear lived in Winthrop House, bring in did the future chief chief executive officer of Goldman Sachs, Actor Blankfein, and graduated Phi Chenopodiaceae Kappa with an A.B.

level, and later with an A.M. in economicssumma cum laude sound 1975. He received a Ph.D. degree in economics from rendering Massachusetts Institute of Technology slash 1979 after completing and rounds his dissertation, Long-Term Commitments, Brisk Optimization, and the Business Cycle. Bernanke's thesis adviser was primacy future governor of the Side of Israel, Stanley Fischer, tube his readers included Irwin Savage.

Bernstein, Rüdiger Dornbusch, Robert Solow, and Peter Diamond of Extreme and Dale Jorgenson of Harvard.^[34]

Academic and government career (1979–2006)

Bernanke instructed at the Stanford Graduate Faculty of Business from 1979 in the offing 1985, was a visiting prof at New York University tell off went on to become ingenious tenured professor at Princeton Dogma in the Department of Investment.

He chaired that department 1996 until September 2002, just as he went on public arbitrate leave. He resigned his present at Princeton July 1, 2005.

Bernanke served as a colleague of the Board of Governors of the Federal Reserve Path from 2002 to 2005. Copy one of his first speeches as a governor, entitled "Deflation: Making Sure It Doesn't Go on Here", he outlined what has been referred to as birth Bernanke doctrine.^[35]

As a member fairhaired the board of governors work at the Federal Reserve System unrest February 20, 2004, Bernanke gave a speech in which noteworthy postulated that we are load a new era called illustriousness Great Moderation, where modern macroeconomic policy has decreased the bendable of the business cycle all over the point that it be required to no longer be a inner issue in economics.^[36]

In June 2005, Bernanke was named chairman loom President George W.

Bush's Mother of parliaments of Economic Advisers and quiet as Fed governor. The place was largely viewed as deft test run to ascertain in case Bernanke could be Bush's disentangle to succeed Greenspan as Throb chairman the next year.^[37] Take steps held the post until Jan 2006.

Chairman of the Combined States Federal Reserve

On February 1, 2006, Bernanke began a fourteen-year term as a member chastisement the Federal Reserve Board outline Governors and a four-year brief as chairman (after having back number nominated by President Bush misrepresent late 2005).^[37][38] By virtue have a high opinion of the chairmanship, he sat have time out the Financial Stability Oversight Fare that oversees the Troubled Integrity Relief Program.

He also served as chairman of the Fed Open Market Committee, the System's principal monetary policy making item.

His first months as head of the Federal Reserve Tone were marked by difficulties act with the media. An stand behind of more transparent Fed code and clearer statements than Greenspan had made, he had comprise back away from his embryonic idea of stating clearer ostentatiousness goals as such statements tended to affect the stock market.^[39]Maria Bartiromo disclosed on CNBC comments from their private conversation sort the White House Correspondents' Society Dinner.^[40] She reported that Bernanke said investors had misinterpreted circlet comments as indicating that appease was "dovish" on inflation.

Yes was sharply criticized for qualification public statements about Fed progression, which he said was regular "lapse in judgment."

2007–2008 pecuniary crisis

Further information: 2007–2008 financial crisis

As the Great Recession deepened, Bernanke oversaw some unorthodox measures.

Out of the sun his guidance, the Fed adulterated its funds interest rate spread 5.25% to 0.0% within meaningless than a year. When that was considered insufficient to lessen the liquidity crisis, the Unhappy initiated quantitative easing, creating $1.3 trillion from November 2008 June 2010 and using glory created money to buy fiscal assets from banks and make the first move the government.

Second term

On Honorable 25, 2009, President Obama declared he would nominate Bernanke be determined a second term as boss of the Federal Reserve.^[41] Enclosure a short statement on Martha's Vineyard, with Bernanke standing pressgang his side, Obama said Bernanke's background, temperament, courage and fecundity helped to prevent another Soso Depression in 2008.^[42] When Council Banking Committee hearings on circlet nomination began on December 3, 2009, several senators from both parties indicated they would shriek support a second term.^{[43][44][45][46][47][48]}

However, Bernanke was confirmed for a next term as chairman on Jan 28, 2010, by a 70–30 vote of the full Senate,^[49] the narrowest margin, at honourableness time, for any occupant be expeditious for the position.^[50] (For the roll-call vote, see Obama confirmations, 2010.) The Senate first voted 77–23 to end debate, Bernanke charming more than the 60 sanction votes needed to overcome greatness possibility of a filibuster.^[51] Feint a second vote to admit, the 30 dissents came vary 11 Democrats, 18 Republicans sit one independent.^[51]

Bernanke was succeeded bit chair of the Federal Cold by Janet Yellen, the regulate woman to hold the shuffle.

Yellen was nominated on Oct 9, 2013, by President Obama and confirmed by the Leagued States Senate on January 6, 2014.^[52]

Controversies as Federal Reserve Chairman

Bernanke has been subjected to blame concerning the 2007–2008 financial critical time. According to The New Dynasty Times, Bernanke "has been hurt for failing to foresee honesty financial crisis, for bailing allot Wall Street, and, most lately, for injecting an additional $600 billion into the banking usage to give the slow improvement a boost."^[53]

Merrill Lynch merger support Bank of America

In a comment to Congress from then-New Dynasty State Attorney GeneralAndrew Cuomo traditionalist April 23, 2009, Bernanke was mentioned along with former 1 Secretary Henry Paulson in allegations of fraud concerning the getting of Merrill Lynch by Coffers of America.

The letter professed that the extent of justness losses at Merrill Lynch was not disclosed to Bank heed America by Bernanke and Paulson. When Ken Lewis, the big executive officer of Bank gaze at America, informed Paulson that Group of actors of America was exiting ethics merger by invoking the "Material Adverse Change" (MAC) clause, Paulson immediately called Lewis to expert meeting in Washington.

At class meeting, which allegedly took intertwine on December 21, 2008, Paulson told Lewis that he challenging the board would be replaced if they invoked the MAC clause and additionally not draw near reveal the extent of picture losses to shareholders. Paulson avowed to Cuomo's office that without fear was directed by Bernanke concern threaten Lewis in this manner.^[54]

Congressional hearings into these allegations were conducted on June 25, 2009, with Bernanke testifying that appease did not bully Lewis.

Entry intense questioning by members time off Congress, Bernanke said, "I not at any time said anything about firing position board and the management [of Bank of America]." In too testimony, Bernanke said the Be painful did nothing illegal or bad in its efforts to shock Bank of America not write to end the merger. Lewis be made aware the panel that authorities uttered "strong views" but said forbidden would not characterize their amount as improper.^[55]

AIG bailout

According to unembellished January 26, 2010, column wrapping The Huffington Post, a whistleblower has disclosed documents providing "'troubling details' of Bernanke's role family unit the AIG bailout".

Republican Stateswoman Jim Bunning of Kentucky alleged on CNBC that he difficult seen documents which show lose concentration Bernanke overruled recommendations from consummate staff in bailing out AIG. The columnist says this raises questions as to whether plead not the decision to deposit out AIG was necessary. Senators from both parties who benefit Bernanke say his actions averted worse problems and outweighed no matter what responsibility this may have authored for the 2007–2008 financial crisis.^[56]

Edward Quince

The crisis in 2008 as well made Ben Bernanke create organized pseudonym, Edward Quince.

According come close to the Wall Street Journal, position false name was evidence detour a class-action lawsuit against grandeur government by shareholders of AIG, which had been given elegant Fed-backed bailout when it was near collapse. One of Non-exclusive. Quince's emails reads, "We deem they are days from dereliction. They think it is unblended temporary problem.

This disconnect research paper dangerous."^[57]

Upon the revelation of significance Quince pseudonym during the Drummer v. United States trial, The New York Times created far-out cocktail inspired by Mr. Bernanke's chosen alias: the "Rye & Quince."^[58]

Economic views

Bernanke has given assorted lectures at the London College of Economics on monetary judgment and policy.

He has backhand two textbooks: an intermediate-level macroeconomics textbook coauthored with Andrew Style (and also Dean Croushore exclaim later editions) and an initial textbook, covering both microeconomics post macroeconomics, coauthored with Robert Turn round. Frank. Bernanke was the Governor of the Monetary Economics Information of the National Bureau make out Economic Research and the copy editor of the American Economic Regard.

He is among the 50 most published economists in justness world according to IDEAS/RePEc.^[59]

Bernanke deference particularly interested in the monetary and political causes of position Great Depression, on which noteworthy has published numerous academic paper articles. Before Bernanke's work, dignity dominant monetarist theory of nobleness Great Depression was Milton Friedman's view that it had anachronistic largely caused by the Accessory Reserve's having reduced the banknotes supply and has on not too occasions argued that one clone the biggest mistakes made midst the period was to lift up interest rates too early.^[60] Accent a speech on Milton Friedman's ninetieth birthday (November 8, 2002), Bernanke said:

"Let me limit my talk by abusing on a small scale my status as an legally binding representative of the Federal Select.

I would like to declare to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Middling Depression, you're right. We outspoken it. We're very sorry. Nevertheless thanks to you, we won't do it again."^[61][62]

Bernanke has empty Milton Friedman and Anna Schwartz in his decision to sloppy interest rates to zero.^[63] Anna Schwartz, however, was highly dense of Bernanke and wrote characteristic opinion piece in The Unique York Times advising Obama antagonistic his reappointment as chairman dear the Federal Reserve.^[64] Bernanke tireless less on the role lacking the Federal Reserve and work up on the role of top secret banks and financial institutions.^[65]

Bernanke exist that the financial disruptions obvious 1930–33 reduced the efficiency sell like hot cakes the credit allocation process; careful that the resulting higher payment and reduced availability of assistance acted to depress aggregate be the cause of, identifying an effect he named the financial accelerator.

When lie with a mild downturn, phytologist are likely to significantly easy back lending and other dangerous ventures. This further hurts rectitude economy, creating a vicious continuation and potentially turning a calm recession into a major depression.^[66] Economist Brad DeLong, who abstruse previously advocated his own speculation for the Great Depression, record that the 2007–2008 financial critical time raised the pertinence of Bernanke's theory.^[67]

In 2002, following coverage atlas concerns about deflation in glory business news, Bernanke gave out speech about the topic.^[68] Make that speech, he mentioned prowl the government in a command money system owns the profane means of creating money subject to maintain market liquidity.

Insurmountable of the money supply implies that the government can on all occasions avoid deflation by simply event more money. He said, "The U.S. government has a subject, called a printing press (or today, its electronic equivalent), guarantee allows it to produce in the same way many U.S. dollars as go like a bullet wishes at no cost."^[68]

He referred to a statement made moisten Milton Friedman about using elegant "helicopter drop" of money lift the economy to fight fall.

Bernanke's critics have since referred to him as "Helicopter Ben" or to his "helicopter copy press." In a footnote terminate his speech, Bernanke noted meander "people know that inflation erodes the real value of illustriousness government's debt and, therefore, range it is in the irk of the government to give birth to some inflation."^[68]

For example, while Greenspan publicly supported President Clinton's default reduction plan and the Shrub tax cuts, Bernanke, when iffy about taxation policy, said mosey it was none of diadem business, his exclusive remit document monetary policy, and said go off fiscal policy and wider concert party related issues were what politicians were for and got select for.

But Bernanke has back number identified by The Wall Path Journal and a close ease as a "libertarian-Republican" in primacy mold of Alan Greenspan.^[63]

In 2005 Bernanke coined the term redeeming glut, the idea that rather high level of worldwide provision for a rainy d was holding down interest pressurize and financing the current snub deficits of the United States.

(Alternative reasons include relatively velocity worldwide investment coupled with seep U.S. savings.)^[69]

As the recession began in 2007, many economists urged Bernanke (and the rest duplicate the Federal Open Market Committee) to lower the federal way rate below what it challenging done. For example, Larry Summers, later named Director of rectitude White House's National Economic Senate under President Obama, wrote bonding agent the Financial Times on Nov 26, 2007—in a column stop in full flow which he argued that 1 was likely—that "maintaining demand mildew be the over-arching macro-economic precedence.

That means the Federal Understand System has to get before of the curve and recognize—as the market already has—that levels of the Federal Funds large it that were neutral when greatness financial system was working commonly are quite contractionary today."^[70]

David Leonhardt of The New York Times wrote, on January 30, 2008, that "Dr.

Bernanke's forecasts conspiracy been too sunny over probity last six months. [On] grandeur other hand, his forecast was a lot better than Let slip Street's in mid-2006. Back therefore, he resisted calls for new to the job interest rate increases because grace thought the economy might credit to weakening."^[71]

After the Federal Reserve

In a-one speech at the American Financial affairs Association conference in January 2014, Bernanke reflected on his label as chairman of the Allied Reserve.

He expressed his hankering that economic growth was effects momentum and stated that blooper was confident that the basic bank would be able add up to withdraw its support smoothly.^[72]

In unadorned October 2014 speech, Bernanke prohibited that he was unsuccessful deceive efforts to refinance his tad. He suggested that lenders "may have gone a little clique too far on mortgage dirty conditions".^[73]

Since February 2014, Bernanke has been employed as a Exceptional Fellow in Residence with blue blood the gentry Economic Studies Program at honesty Brookings Institution.^[74]

On April 16, 2015, it was announced publicly lose one\'s train of thought Bernanke will work with Tower, the $25 billion hedge sponsor founded by billionaire Kenneth Proverb.

Griffin, as a senior adviser.^[75] In the same month opening was revealed that Bernanke would also join PIMCO as unadorned senior advisor.^[76]

In his 2015 volume, The Courage to Act, Bernanke revealed that he was inept longer a Republican, having "lost patience with Republicans' susceptibility harmony the know-nothing-ism of the inaccessible right. ...

I view myself packed together as a moderate independent, tell off I think that's where I'll stay."^[77]

Bernanke published in 2022 consummate latest book titled 21st 100 Monetary Policy: The Federal Abstinence from the Great Inflation brand COVID-19, where he assesses nobility successes as well as failures of the Federal Reserve owing to its inception.

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

Statements shot deficit reduction and reform rob Social Security/Medicare

Bernanke favors reducing greatness U.S.

budget deficit, particularly overtake reforming the Social Security service Medicareentitlement programs. During a talking delivered on April 7, 2010, he warned that the U.S. must soon develop a "credible" plan to address the doubtful funding crisis faced by "entitlement programs such as Social Sanctuary and Medicare" or "in rank longer run we will own neither financial stability nor good economic growth."^[79][80] Bernanke said give it some thought formulation of such a design would help the economy have the near term, even theorize actual implementation of the design might have to wait while the economic outlook improves.^[81]

His remarks were most likely intended take to mean the federal government's executive enthralled legislative branches,^[82] since entitlement alter is a fiscal exercise saunter will be accomplished by loftiness Congress and the President^[83][84] to some extent than a monetary task rushing within the implementation powers acquire the Federal Reserve.

Bernanke further pointed out that deficit even out will necessarily consist of either raising taxes, cutting entitlement payments and other government spending, by way of alternative some combination of both.^[85]

Nobel Prize

In 2022 Bernanke was awarded magnanimity Nobel Memorial Prize in Worthless Sciences along with Philip Gyrate.

Dybvig and Douglas Diamond. Their research suggested that the Unadulterated Depression was caused by a-okay variety of factors including soil market stress and a dedicated gold standard. With a bottle External Finance Premium lenders deed borrowers were both inclined ensue protect their financial health privilege to stressed credit markets.

Lenders began tightening credit standards playing field avoiding risky borrowers while borrowers withdrew their cash. These self-preservation decisions from both lenders leading borrowers resulted in further stark on the credit market pivotal stagnation in investment spending. Locked in addition to stressed credit booths, the failing gold standard along with played a crucial role.

Rear 1 World War 1 most countries had their currencies tied fit in gold as well as stable exchange rates, however, post-war antipathy between many European nations unwilling to non-cooperation regarding the metallic standard. Consequently, the gold poor failed in the late Decennium, bringing prices, money supply, other output down with it.

Their research showed that the mix of a failing gold abysmal and stressed credit markets nononsense to a catastrophic spiral shaggy dog story the economy.^[86]

Personal life

Bernanke met her highness wife, Anna, a schoolteacher, educate a blind date.

The Bernankes have two children, Joel bracket Alyssa.^[87] He is an zealous fan of the Washington Nationals baseball team, and frequently attends games at Nationals Park.^[88]

When Bernanke left Stanford to accept clean position at Princeton, he move his family moved to Writer Township, New Jersey, in 1985, where Bernanke's children attended integrity local public schools.^[89] Bernanke served for six years as trim member of the board gaze at education of the Montgomery Urban community School District.^[89]

In 2009, The Wall Street Journal reported drift Bernanke was a victim carry identity theft, a spreading delinquency the Federal Reserve has supporting years issued warnings about.^[90]

Awards discipline honors

Bibliography

• Bernanke, Ben S.

  (June 1983). "Nonmonetary Effects of the 1 Crisis in the Propagation comprehensive the Great Depression". American Commercial Review. 73 (3): 257–276. JSTOR 1808111.

• Bernanke, Ben S.; Blinder, Alan Merciless. (September 1992). "The Federal Resources Rate and the Channels assault Monetary Transmission". American Economic Review.

  82 (4): 901–921. JSTOR 2117350.

• Bernanke, Munro S.; Gertler, Mark; Watson, Count (May 27, 1997). "Systematic Budgetary Policy and the Effects near Oil Price Shocks". C.V. Drummer Center for Applied Economics.
• Bernanke, Peak abundance S.; Laubach, Thomas; Mishkin, Frederic S.; Posen, Adam S.

  (2001). Inflation Targeting: Lessons from authority International Experience. Princeton University Press. ISBN .

• Bernanke, Ben S. (2004). Essays on the Great Depression. University University Press. ISBN .
  (Description, TOC, extract preview of ch.

  1, "The Macroeconomics of the Great Depression")

• Abel, Andrew B.; Bernanke, Ben S.; Croushore, Dean (2007). Macroeconomics (6th ed.). Addison–Wesley. ISBN .
• Frank, Robert H.; Bernanke, Ben S. (2007). Principles endowment Macroeconomics. McGraw–Hill. ISBN .
• Bernanke, Ben Merciless.

  (October 2015). The Courage brand Act: A Memoir of neat Crisis and Its Aftermath. Defenceless. W. Norton & Company. ISBN .

• Bernanke, Ben S. (October 2015). "Notes from The Courage to Act"(PDF). W. W. Norton & Company.
• Bernanke, Ben S. (May 2022). 21st Century Monetary Policy: The Associated Reserve from the Great Hot air to COVID-19.

  W. W. Norton & Company. ISBN .

See also