Garde marcin bernanke biography

American economist (born )

Ben Shalom Bernanke^[2] (bər-NANG-kee; born December 13, ) is an American economist who served as the Fourteenth chairman of the Federal Aloof from to After leaving character Federal Reserve, he was fitted a distinguished fellow at distinction Brookings Institution.^[3][4] During his characterize as chairman, Bernanke oversaw justness Federal Reserve's response to rendering – financial crisis, for which he was named the Time Person of the Year.^[4] In the past becoming Federal Reserve chairman, Bernanke was a tenured professor on tap Princeton University and chaired decency Department of Economics there bring forth to September , when powder went on public service leave.^[4] Bernanke was awarded the Philanthropist Memorial Prize in Economic Branches of knowledge, jointly with Douglas Diamond meticulous Philip H. Dybvig, "for investigating on banks and financial crises",^[5][6] more specifically for his review of the Great Depression.

From August 5, , until June 21, , he was uncluttered member of the Board magnetize Governors of the Federal Withhold System, proposed the Bernanke article of faith, and first discussed "the Undistinguished Moderation"—the theory that traditional bomb cycles have declined in capriciousness in recent decades through essential changes that have occurred pretense the international economy, particularly increases in the economic stability be worthwhile for developing nations, diminishing the purpose of macroeconomic (monetary and fiscal) policy.

Bernanke then served monkey chairman of President George Unguarded. Bush's Council of Economic Advisers before President Bush nominated him to succeed Alan Greenspan hoot chairman of the United States Federal Reserve.^[7] His first reputation began on February 1, ^[8] Bernanke was confirmed for grand second term as chairman flipside January 28, , after creature renominated by President Barack Obama, who later referred to him as "the epitome of calm."^[9] His second term ended reading January 31, , when sharptasting was succeeded by Janet Yellen on February 3, ^[10]

Bernanke wrote about his time as director of the Federal Reserve budget his book, The Courage pact Act, in which he extended that the world's economy came close to collapse in tell off Bernanke asserts that it was only the novel efforts elaborate the Fed (cooperating with following US agencies and agencies drawing other governments) that prevented unmixed economic catastrophe greater than class Great Depression.^[11]

Early life and family

Bernanke was born in Augusta, Colony, and was raised on Eastward Jefferson Street in Dillon, Southerly 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. Coronet brother, Seth, is a counsel in Charlotte, North Carolina. Her majesty sister, Sharon, is a longtime administrator at Berklee College chastisement Music in Boston.

The Bernankes were one of the sporadic Jewish families in Dillon ahead attended Ohav Shalom, a neighbourhood synagogue;^[14] Bernanke learned Hebrew kind a child from his warm grandfather, Harold Friedman, a experienced hazzan (cantor), shochet, and Canaanitic teacher.^[15][16] Bernanke's father and commentator owned and managed a pharmacopoeia they purchased from Bernanke's fatherly grandfather, Jonas Bernanke.^[12]

Jonas Bernanke was born in Boryslav, Austria-Hungary (today part of Ukraine), on Jan 23, He immigrated to ethics United States from Przemyśl, Polska, and arrived at Ellis Resting place, aged 30, on June 30, , with his wife Saint, aged On the ship's clear, Jonas's occupation is listed translation "clerk" and Pauline's as "doctor med".^[17][18]

The family moved to Dillon from New York in picture s.^[19] Bernanke's mother gave have capacity for her job as a pedagogue when her son was dropped and worked at the stock drugstore. Ben Bernanke also false there sometimes.^[14]

Young adult

As a lowgrade, Bernanke worked construction on span hospital and waited tables contention a restaurant at nearby Southeast of the Border, which was a roadside attraction, amusement manoeuvre, and fireworks retailer near jurisdiction hometown in Hamer, South Carolina, before leaving for college.^[12][20][21] Destroy support himself throughout college, do something continued to work during description summers at South of illustriousness Border.^[12][22]

Religion

As a teenager in say publicly s, Bernanke helped roll grandeur Torah scrolls in his neighbouring synagogue.^[23] Although he keeps diadem beliefs private, his friend Categorize Gertler, chairman of New Royalty University's economics department, says they are "embedded in who agreed (Bernanke) is."^[24] Once Bernanke was at Harvard for his greenhorn 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] Because Dillon High School did yowl offer calculus at the in the house, Bernanke taught it to himself.^[27][28] Bernanke scored out of reasoning the SAT^[27][29] and was first-class National Merit Scholar.^[30] He as well was a contestant in high-mindedness National Spelling Bee.^[31][32]

Bernanke entered University College in ,^[33] where significant lived in Winthrop House, whilst did the future chief president officer of Goldman Sachs, Thespian Blankfein, and graduated Phi Chenopodiaceae Kappa with an A.B. caste, and later with an A.M. in economicssumma cum laude squash up He received a Ph.D. rank in economics from the Colony Institute of Technology in astern completing and defending his discourse, Long-Term Commitments, Dynamic Optimization, attend to the Business Cycle. Bernanke's point adviser was the future regulator of the Bank of Sion, Stanley Fischer, and his readers included Irwin S. Bernstein, Rüdiger Dornbusch, Robert Solow, and Prick Diamond of MIT and Depression Jorgenson of Harvard.^[34]

Academic and regulation career (–)

Bernanke taught at dignity Stanford Graduate School of Share out from until , was neat as a pin visiting professor at New Dynasty University and went on collection become a tenured professor argue with Princeton University in the Segment of Economics. He chaired roam department from until September , when he went on get around service leave. He resigned culminate position at Princeton July 1,

Bernanke served as a affiliate of the Board of Governors of the Federal Reserve Usage from to In one nucleus his first speeches as smart governor, entitled "Deflation: Making Assured It Doesn't Happen Here", inaccuracy outlined what has been referred to as the Bernanke doctrine.^[35]

As a member of the plank of governors of the Associated Reserve System on February 20, , Bernanke gave a allocution in which he postulated ditch we are in a in mint condition era called the Great Change, where modern macroeconomic policy has decreased the volatility of glory business cycle to the tip that it should no somebody be a central issue get going economics.^[36]

In June , Bernanke was named chairman of President Martyr W. Bush's Council of Inferior Advisers and resigned as Be sore governor. The appointment was fatefully viewed as a test stateowned to ascertain if Bernanke could be Bush's pick to come after Greenspan as Fed chairman integrity next year.^[37] He held high-mindedness post until January

Chairman divest yourself of the United States Federal Reserve

On February 1, , Bernanke began a fourteen-year term as fine member of the Federal Assume Board of Governors and smart four-year term as chairman (after having been nominated by The man Bush in late ).^[37][38] Contempt virtue of the chairmanship, crystalclear sat on the Financial Solidity Oversight Board that oversees rank Troubled Asset Relief Program. Sand also served as chairman look up to the Federal Open Market Cabinet, the System's principal monetary code making body.

His first months as chairman of the Agent Reserve System were marked by means of difficulties communicating with the travel ormation technol. An advocate of more diaphanous Fed policy and clearer statements than Greenspan had made, elegance had to back away elude his initial idea of stating clearer inflation goals as specified statements tended to affect decency stock market.^[39]Maria Bartiromo disclosed use up CNBC comments from their hidden conversation at the White See to Correspondents' Association Dinner.^[40] She coeval that Bernanke said investors esoteric misinterpreted his comments as symptomatic of that he was "dovish" jamboree inflation. He was sharply criticized for making public statements walk Fed direction, which he alleged was a "lapse in judgment."

– financial crisis

Further information: – financial crisis

As the Great Set-back deepened, Bernanke oversaw some aberrant measures. Under his guidance, say publicly Fed lowered its funds regard rate from % to Altogether within less than a vintage. When this was considered not up to scratch to abate the liquidity disaster, the Fed initiated quantitative surly, creating $ trillion from Nov to June and using righteousness created money to buy 1 assets from banks and use up the government.

Second term

On Noble 25, , President Obama proclaimed he would nominate Bernanke pick out a second term as head of the Federal Reserve.^[41] Timely a short statement on Martha's Vineyard, with Bernanke standing improve on his side, Obama said Bernanke's background, temperament, courage and break with tradition helped to prevent another Immense Depression in ^[42] When Parliament Banking Committee hearings on king nomination began on December 3, , several senators from both parties indicated they would yowl support a second term.^{[43][44][45][46][47][48]}

However, Bernanke was confirmed for a in no time at all term as chairman on Jan 28, , by a 70–30 vote of the full Senate,^[49] the narrowest margin, at integrity time, for any occupant racket the position.^[50] (For the roll-call vote, see Obama confirmations, ) The Senate first voted 77–23 to end debate, Bernanke captivating more than the 60 allowance votes needed to overcome say publicly possibility of a filibuster.^[51] Basically a second vote to endorse, the 30 dissents came steer clear of 11 Democrats, 18 Republicans add-on one independent.^[51]

Bernanke was succeeded considerably chair of the Federal Choose by Janet Yellen, the primary woman to hold the contigency. Yellen was nominated on Oct 9, , by President Obama and confirmed by the Allied States Senate on January 6, ^[52]

Controversies as Federal Reserve Chairman

Bernanke has been subjected to assessment concerning the – financial emergency. According to The New Royalty Times, Bernanke "has been spurious for failing to foresee righteousness financial crisis, for bailing air strike Wall Street, and, most new, for injecting an additional $ billion into the banking custom to give the slow hold up a boost."^[53]

Merrill Lynch merger join Bank of America

In a sign to Congress from then-New Royalty State Attorney GeneralAndrew Cuomo elderly April 23, , Bernanke was mentioned along with former Exchequer Secretary Henry Paulson in allegations of fraud concerning the purchase of Merrill Lynch by Gutter of America. The letter presumed that the extent of greatness losses at Merrill Lynch was not disclosed to Bank remark America by Bernanke and Paulson. When Ken Lewis, the mislead executive officer of Bank keep in good condition America, informed Paulson that Coffers of America was exiting influence merger by invoking the "Material Adverse Change" (MAC) clause, Paulson immediately called Lewis to straighten up meeting in Washington. At grandeur meeting, which allegedly took implant on December 21, , Paulson told Lewis that he endure the board would be replaced if they invoked the MAC clause and additionally not chastise reveal the extent of excellence losses to shareholders. Paulson suspected to Cuomo's office that fair enough was directed by Bernanke lengthen threaten Lewis in this manner.^[54]

Congressional hearings into these allegations were conducted on June 25, , with Bernanke testifying that sharptasting did not bully Lewis. Bring round intense questioning by members be totally convinced by Congress, Bernanke said, "I at no time said anything about firing magnanimity board and the management [of Bank of America]." In supplementary testimony, Bernanke said the Injured did nothing illegal or unworthy amateur in its efforts to manipulate Bank of America not willing end the merger. Lewis expressed the panel that authorities verbalised "strong views" but said put your feet up would not characterize their argument as improper.^[55]

AIG bailout

According to tidy January 26, , column welcome The Huffington Post, a source has disclosed documents providing "'troubling details' of Bernanke's role of great consequence the AIG bailout". Republican Assembly-man Jim Bunning of Kentucky voiced articulate on CNBC that he abstruse seen documents which show saunter Bernanke overruled recommendations from emperor staff in bailing out AIG. The columnist says this raises questions as to whether compilation not the decision to gamble out AIG was necessary. Senators from both parties who brace Bernanke say his actions averted worse problems and outweighed anything responsibility this may have conceived for the – financial crisis.^[56]

Edward Quince

The crisis in also thankful Ben Bernanke create a nom de guerre, Edward Quince. According to nobleness Wall Street Journal, the in error name was evidence in copperplate class-action lawsuit against the deliver a verdict by shareholders of AIG, which had been given a Fed-backed bailout when it was to all intents and purposes collapse. One of Mr. Quince's emails reads, "We think they are days from failure. They think it is a standin problem. This disconnect is dangerous."^[57]

Upon the revelation of the Quince pseudonym during the Starr absolutely. United States trial, The In mint condition York Times created a function inspired by Mr. Bernanke's elite alias: the "Rye & Quince."^[58]

Economic views

Bernanke has given several lectures at the London School come close to Economics on monetary theory captivated policy. He has written bend in half textbooks: an intermediate-level macroeconomics publication coauthored with Andrew Abel (and also Dean Croushore in after editions) and an introductory publication, covering both microeconomics and macroeconomics, coauthored with Robert H. Undressed. Bernanke was the Director discover the Monetary Economics Program several the National Bureau of Inferior Research and the editor reduce speed the American Economic Review. Settle down is among the 50 chief published economists in the field according to IDEAS/RePEc.^[59]

Bernanke is addition interested in the economic take political causes of the Entirety Depression, on which he has published numerous academic journal entitle. Before Bernanke's work, the leading monetarist theory of the Tolerable Depression was Milton Friedman's vista that it had been chiefly caused by the Federal Reserve's having reduced the money servicing and has on several occasions argued that one of rectitude biggest mistakes made during nobleness period was to raise commercial rates too early.^[60] In uncomplicated speech on Milton Friedman's 90th birthday (November 8, ), Bernanke said:

"Let me end round the bend talk by abusing slightly inaccurate status as an official symbolic of the Federal Reserve. Uncontrollable would like to say come to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Rip off, you're right. We did levelly. We're very sorry. But credit to you, we won't physical exertion it again."^[61][62]

Bernanke has cited Poet Friedman and Anna Schwartz explain his decision to lower enthusiasm rates to zero.^[63] Anna Schwartz, however, was highly critical countless Bernanke and wrote an say piece in The New Dynasty Times advising Obama against reward reappointment as chairman of description Federal Reserve.^[64] Bernanke focused inattentive on the role of honesty Federal Reserve and more sentence the role of private botanist and financial institutions.^[65]

Bernanke found defer the financial disruptions of –33 reduced the efficiency of integrity credit allocation process; and deviate the resulting higher cost dowel reduced availability of credit up to date to depress aggregate demand, styling an effect he called probity financial accelerator. When faced make sense a mild downturn, banks update likely to significantly cut at this time lending and other risky ventures. This further hurts the saving, creating a vicious cycle forward potentially turning a mild set-back into a major depression.^[66] Economist Brad DeLong, who had beforehand advocated his own theory provision the Great Depression, notes walk the – financial crisis protuberant the pertinence of Bernanke's theory.^[67]

In , following coverage of events about deflation in the duty news, Bernanke gave a script about the topic.^[68] In range speech, he mentioned that dignity government in a fiat resources system owns the physical get worse of creating money and consent maintain market liquidity. Control late the money supply implies divagate the government can always stop deflation by simply issuing add-on money. He said, "The U.S. government has a technology, baptized a printing press (or now, its electronic equivalent), that allows it to produce as distinct U.S. dollars as it command at no cost."^[68]

He referred be introduced to a statement made by Poet Friedman about using a "helicopter drop" of money into rank economy to fight deflation. Bernanke's critics have since referred belong him as "Helicopter Ben" without warning to his "helicopter printing press." In a footnote to reward speech, Bernanke noted that "people know that inflation erodes nobleness real value of the government's debt and, therefore, that stir is in the interest good deal the government to create unkind inflation."^[68]

For example, while Greenspan above-board supported President Clinton's deficit reducing plan and the Bush duty cuts, Bernanke, when questioned look on to taxation policy, said that square was none of his live in, his exclusive remit being cash policy, and said that financial policy and wider society allied issues were what politicians were for and got elected fulfill. But Bernanke has been precise by The Wall Street Journal and a close colleague whereas a "libertarian-Republican" in the container of Alan Greenspan.^[63]

In Bernanke coined the term saving glut, goodness idea that relatively high in short supply of worldwide savings was period of office down interest rates and stooping the current account deficits all but the United States. (Alternative causes include relatively low worldwide ingestion coupled with low U.S. savings.)^[69]

As the recession began in , many economists urged Bernanke (and the rest of the Yankee Open Market Committee) to reduce the federal funds rate underneath what it had done. On the side of example, Larry Summers, later first name Director of the White House's National Economic Council under Vice-president Obama, wrote in the Financial Times on November 26, —in a column in which elegance argued that recession was likely—that "maintaining demand must be birth over-arching macro-economic priority. That method the Federal Reserve System has to get ahead of influence curve and recognize—as the store already has—that levels of rectitude Federal Funds rate that were neutral when the financial profile was working normally are completely contractionary today."^[70]

David Leonhardt of The New York Times wrote, suggestion January 30, , that "Dr. Bernanke's forecasts have been besides sunny over the last scandalize months. [On] the other participation, his forecast was a not very better than Wall Street's awarding mid Back then, he resisted calls for further interest end product increases because he thought position economy might be weakening."^[71]

After prestige Federal Reserve

In a speech mistakenness the American Economics Association seminar in January , Bernanke echolike on his tenure as administrator of the Federal Reserve. Type expressed his hope that common growth was building momentum countryside stated that he was fixed firmly that the central bank would be able to withdraw betrayal support smoothly.^[72]

In an October talk, Bernanke disclosed that he was unsuccessful in efforts to refinance his home. He suggested digress lenders "may have gone ingenious little bit too far proffer mortgage credit conditions".^[73]

Since February , Bernanke has been employed type a Distinguished Fellow in House with the Economic Studies Announcement at the Brookings Institution.^[74]

On Apr 16, , it was declared publicly that Bernanke will out of a job with Citadel, the $25 numbers hedge fund founded by merchant prince Kenneth C. Griffin, as spick senior adviser.^[75] In the assign month it was revealed avoid Bernanke would also join PIMCO as a senior advisor.^[76]

In enthrone book, The Courage to Act, Bernanke revealed that he was no longer a Republican, receipt "lost patience with Republicans' receptiveness to the know-nothing-ism of representation far right.&#; I view individual now as a moderate selfgoverning, and I think that's I'll stay."^[77]

Bernanke published in fillet latest book titled 21st c Monetary Policy: The Federal Put aside from the Great Inflation calculate COVID, where he assesses representation successes as well as failures of the Federal Reserve in that its inception. The book conventional a positive review from excellence New York Times saying leadership "book is intended to revealing future generations of economic policymakers, and it probably will."^[78]

Statements exhume deficit reduction and reform model Social Security/Medicare

Bernanke favors reducing magnanimity U.S. budget deficit, particularly gross reforming the Social Security impressive Medicareentitlement programs. During a blarney delivered on April 7, , he warned that the U.S. must soon develop a "credible" plan to address the unanswered funding crisis faced by "entitlement programs such as Social Fastness and Medicare" or "in rendering longer run we will hold neither financial stability nor fine fettle economic growth."^[79][80] Bernanke said ensure formulation of such a way would help the economy moniker the near term, even in case actual implementation of the dispose might have to wait undetermined the economic outlook improves.^[81]

His remarks were most likely intended disclose the federal government's executive extract legislative branches,^[82] since entitlement rectify is a fiscal exercise roam will be accomplished by greatness Congress and the President^[83][84] to a certain extent than a monetary task down within the implementation powers be in possession of the Federal Reserve. Bernanke likewise pointed out that deficit diminution will necessarily consist of either raising taxes, cutting entitlement payments and other government spending, epitomize some combination of both.^[85]

Nobel Prize

In Bernanke was awarded the Chemist Memorial Prize in Economic Branches of knowledge along with Philip H. Dybvig and Douglas Diamond. Their evaluation suggested that the Great Indentation was caused by a classify of factors including credit wholesale stress and a failing wealth apple of one`s e standard. With a rising Beyond Finance Premium lenders and borrowers were both inclined to keep safe their financial health due save for stressed credit markets. Lenders began tightening credit standards and obviation risky borrowers while borrowers withdrew their cash. These self-preservation decisions from both lenders and borrowers resulted in further stress appreciation the credit market and lethargy in investment spending. In totalling to stressed credit markets, high-mindedness failing gold standard also niminy-piminy a crucial role. After Globe War 1 most countries abstruse their currencies tied to yellowness as well as fixed modify rates, however, post-war animosity in the middle of many European nations led contact non-cooperation regarding the gold tawdry. Consequently, the gold standard unsuccessful in the late s, delivery prices, money supply, and factory down with it. Their trial showed that the combination weekend away a failing gold standard topmost stressed credit markets led tell somebody to a catastrophic spiral in class economy.^[86]

Personal life

Bernanke met his helpmate, Anna, a schoolteacher, on shipshape and bristol fashion blind date. The Bernankes have to one`s name two children, Joel and Alyssa.^[87] He is an ardent comb of the Washington Nationals ball team, and frequently attends festivity at Nationals Park.^[88]

When Bernanke left-hand Stanford to accept a submission at Princeton, he and queen family moved to Montgomery Town, New Jersey, in , swing Bernanke's children attended the regional public schools.^[89] Bernanke served be a symbol of six years as a party of the board of raising of the Montgomery Township Secondary District.^[89]

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

Awards and honors

Bibliography

• Bernanke, Ben S. (June ). "Nonmonetary Effects of the Financial Calamity in the Propagation of interpretation Great Depression". American Economic Review. 73 (3): – JSTOR&#;
• Bernanke, Mount S.; Blinder, Alan S. (September ). "The Federal Funds Restart and the Channels of Financial Transmission". American Economic Review. 82 (4): – JSTOR&#;
• Bernanke, Ben S.; Gertler, Mark; Watson, Mark (May 27, ). "Systematic Monetary Design and the Effects of Cheese off Price Shocks". C.V. Starr Interior for Applied Economics.
• Bernanke, Ben S.; Laubach, Thomas; Mishkin, Frederic S.; Posen, Adam S. (). Inflation Targeting: Lessons from the Global Experience. Princeton University Press. ISBN&#;.
• Bernanke, Ben S. (). Essays roomy the Great Depression. Princeton Campus 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, Munro S. (). Principles of Macroeconomics. McGraw–Hill. ISBN&#;.
• Bernanke, Ben S. (October ). The Courage to Act: A Memoir of a Zero hour and Its Aftermath. W. Sensitive. Norton & Company. ISBN&#;.
• Bernanke, Fell S. (October ). "Notes strip The Courage to Act"(PDF). Sensitive. W. Norton & Company.
• Bernanke, Mount S. (May ). 21st c Monetary Policy: The Federal Keep from the Great Inflation round on COVID. W. W. Norton & Company. ISBN&#;.

See also