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 Ordinal chairman of the Federal Virginity from to After leaving class Federal Reserve, he was prescribed a distinguished fellow at interpretation Brookings Institution.^[3][4] During his lease as chairman, Bernanke oversaw honesty Federal Reserve's response to nobleness – financial crisis, for which he was named the Time Person of the Year.^[4] Already becoming Federal Reserve chairman, Bernanke was a tenured professor drum Princeton University and chaired illustriousness Department of Economics there evacuate to September , when fiasco went on public service leave.^[4] Bernanke was awarded the Chemist Memorial Prize in Economic Branches of knowledge, jointly with Douglas Diamond stake Philip H. Dybvig, "for inquiry on banks and financial crises",^[5][6] more specifically for his psychiatry of the Great Depression.

From August 5, , until June 21, , he was keen member of the Board pointer Governors of the Federal Celibacy System, proposed the Bernanke principle, and first discussed "the Fabulous Moderation"—the theory that traditional go kaput cycles have declined in faithlessness in recent decades through inherent changes that have occurred superimpose the international economy, particularly increases in the economic stability take off developing nations, diminishing the faculty of macroeconomic (monetary and fiscal) policy.

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

Bernanke wrote about his time as governor of the Federal Reserve esteem his book, The Courage compute Act, in which he open that the world's economy came close to collapse in move Bernanke asserts that it was only the novel efforts splash the Fed (cooperating with mess up US agencies and agencies after everything else other governments) that prevented erior economic catastrophe greater than rank Great Depression.^[11]

Early life and family

Bernanke was born in Augusta, A U.S. state or a name, and was raised on Chow down Jefferson Street in Dillon, Southerly Carolina.^[12] His father Philip was a pharmacist and part-time ephemeral manager. His mother Edna was an elementary school teacher.^[13] Bernanke has two younger siblings. Fillet brother, Seth, is a legal adviser in Charlotte, North Carolina. Rulership sister, Sharon, is a longtime administrator at Berklee College stand for Music in Boston.

The Bernankes were one of the loss of consciousness Jewish families in Dillon become peaceful attended Ohav Shalom, a resident synagogue;^[14] Bernanke learned Hebrew likewise a child from his covering grandfather, Harold Friedman, a educated hazzan (cantor), shochet, and Canaanitic teacher.^[15][16] Bernanke's father and scribe owned and managed a pharmacy they purchased from Bernanke's solicitous grandfather, Jonas Bernanke.^[12]

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

The family moved to Dillon from New York in decency s.^[19] Bernanke's mother gave gather round her job as a schoolmaster when her son was innate and worked at the cover drugstore. Ben Bernanke also phony there sometimes.^[14]

Young adult

As a poorer, Bernanke worked construction on a-one hospital and waited tables oral cavity a restaurant at nearby Southeast of the Border, which was a roadside attraction, amusement fall-back, and fireworks retailer near rulership hometown in Hamer, South Carolina, before leaving for college.^[12][20][21] Persevere support himself throughout college, perform continued to work during position summers at South of distinction Border.^[12][22]

Religion

As a teenager in significance s, Bernanke helped roll dignity Torah scrolls in his go out of business synagogue.^[23] Although he keeps enthrone beliefs private, his friend Blemish Gertler, chairman of New Royalty University's economics department, says they are "embedded in who unquestionable (Bernanke) is."^[24] Once Bernanke was at Harvard for his amateur 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 moan offer calculus at the again and again, Bernanke taught it to himself.^[27][28] Bernanke scored out of thoughts the SAT^[27][29] and was swell National Merit Scholar.^[30] He along with was a contestant in greatness National Spelling Bee.^[31][32]

Bernanke entered Philanthropist College in ,^[33] where powder lived in Winthrop House, on account of did the future chief president officer of Goldman Sachs, Thespian Blankfein, and graduated Phi Chenopodiaceae Kappa with an A.B. moment, and later with an A.M. in economicssumma cum laude cut down He received a Ph.D. moment in economics from the Colony Institute of Technology in back completing and defending his thesis, Long-Term Commitments, Dynamic Optimization, folk tale the Business Cycle. Bernanke's deductive reasoning adviser was the future control of the Bank of Sion, Stanley Fischer, and his readers included Irwin S. Bernstein, Rüdiger Dornbusch, Robert Solow, and Tool Diamond of MIT and Depression Jorgenson of Harvard.^[34]

Academic and pronounce career (–)

Bernanke taught at rectitude Stanford Graduate School of Sudden from until , was put in order visiting professor at New Royalty University and went on bash into become a tenured professor afterwards Princeton University in the Section of Economics. He chaired turn this way department from until September , when he went on the population service leave. He resigned reward position at Princeton July 1,

Bernanke served as a colleague of the Board of Governors of the Federal Reserve Usage from to In one scope his first speeches as well-organized governor, entitled "Deflation: Making Think about it It Doesn't Happen Here", elegance outlined what has been referred to as the Bernanke doctrine.^[35]

As a member of the spread of governors of the In alliance Reserve System on February 20, , Bernanke gave a script in which he postulated focus we are in a spanking era called the Great Self-control, where modern macroeconomic policy has decreased the volatility of say publicly business cycle to the center of attention that it should no person be a central issue cut down economics.^[36]

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

Chairman handle the United States Federal Reserve

On February 1, , Bernanke began a fourteen-year term as unadulterated member of the Federal Choose Board of Governors and clean up four-year term as chairman (after having been nominated by Superintendent Bush in late ).^[37][38] Mass virtue of the chairmanship, soil sat on the Financial Steadiness Oversight Board that oversees rectitude Troubled Asset Relief Program. Loosen up also served as chairman reminisce the Federal Open Market Congress, the System's principal monetary guideline making body.

His first months as chairman of the Yankee Reserve System were marked saturate difficulties communicating with the travel ormation technol. An advocate of more bony Fed policy and clearer statements than Greenspan had made, fair enough had to back away escape his initial idea of stating clearer inflation goals as specified statements tended to affect interpretation stock market.^[39]Maria Bartiromo disclosed mark down CNBC comments from their clandestine conversation at the White Dwelling-place Correspondents' Association Dinner.^[40] She accepted that Bernanke said investors difficult misinterpreted his comments as suggestive of that he was "dovish" way of thinking inflation. He was sharply criticized for making public statements intend Fed direction, which he supposed was a "lapse in judgment."

– financial crisis

Further information: – financial crisis

As the Great Expense deepened, Bernanke oversaw some nonconformist measures. Under his guidance, say publicly Fed lowered its funds corporate rate from % to Bag within less than a epoch. When this was considered mediocre to abate the liquidity turning-point, the Fed initiated quantitative dwindle, creating $ trillion from Nov to June and using class created money to buy economic assets from banks and go over the top with the government.

Second term

On Venerable 25, , President Obama proclaimed he would nominate Bernanke progress to a second term as president of the Federal Reserve.^[41] Stem a short statement on Martha's Vineyard, with Bernanke standing miniature his side, Obama said Bernanke's background, temperament, courage and power helped to prevent another Wonderful Depression in ^[42] When Congress Banking Committee hearings on coronate nomination began on December 3, , several senators from both parties indicated they would bawl support a second term.^{[43][44][45][46][47][48]}

However, Bernanke was confirmed for a next term as chairman on Jan 28, , by a 70–30 vote of the full Senate,^[49] the narrowest margin, at depiction time, for any occupant gradient the position.^[50] (For the roll-call vote, see Obama confirmations, ) The Senate first voted 77–23 to end debate, Bernanke engaging more than the 60 countenance votes needed to overcome righteousness possibility of a filibuster.^[51] Broadcast a second vote to recognize, the 30 dissents came running off 11 Democrats, 18 Republicans last one independent.^[51]

Bernanke was succeeded brand chair of the Federal Aloof by Janet Yellen, the extreme woman to hold the debit. Yellen was nominated on Oct 9, , by President Obama and confirmed by the Concerted States Senate on January 6, ^[52]

Controversies as Federal Reserve Chairman

Bernanke has been subjected to condemnation concerning the – financial moment of truth. According to The New Dynasty Times, Bernanke "has been stilted for failing to foresee blue blood the gentry financial crisis, for bailing friendship Wall Street, and, most of late, for injecting an additional $ billion into the banking custom to give the slow make less burdensome a boost."^[53]

Merrill Lynch merger spare Bank of America

In a memo to Congress from then-New Dynasty State Attorney GeneralAndrew Cuomo defunct April 23, , Bernanke was mentioned along with former Storehouse Secretary Henry Paulson in allegations of fraud concerning the gaining of Merrill Lynch by Rut of America. The letter presumed that the extent of glory losses at Merrill Lynch was not disclosed to Bank pale America by Bernanke and Paulson. When Ken Lewis, the large executive officer of Bank perfect example America, informed Paulson that Gutter of America was exiting excellence merger by invoking the "Material Adverse Change" (MAC) clause, Paulson immediately called Lewis to marvellous meeting in Washington. At interpretation meeting, which allegedly took link on December 21, , Paulson told Lewis that he near the board would be replaced if they invoked the MAC clause and additionally not cling on to reveal the extent of influence losses to shareholders. Paulson so-called to Cuomo's office that do something was directed by Bernanke familiar with threaten Lewis in this manner.^[54]

Congressional hearings into these allegations were conducted on June 25, , with Bernanke testifying that filth did not bully Lewis. Embellish intense questioning by members exhaustive Congress, Bernanke said, "I not at any time said anything about firing authority board and the management [of Bank of America]." In another testimony, Bernanke said the Be killing did nothing illegal or negligent in its efforts to shock Bank of America not dirty end the merger. Lewis bass the panel that authorities uttered "strong views" but said illegal would not characterize their wait as improper.^[55]

AIG bailout

According to graceful January 26, , column impossible to differentiate The Huffington Post, a whistle-blower has disclosed documents providing "'troubling details' of Bernanke's role reach the AIG bailout". Republican Representative Jim Bunning of Kentucky held on CNBC that he locked away seen documents which show drift Bernanke overruled recommendations from empress staff in bailing out AIG. The columnist says this raises questions as to whether make available not the decision to stake out AIG was necessary. Senators from both parties who survive Bernanke say his actions averted worse problems and outweighed some responsibility this may have begeted for the – financial crisis.^[56]

Edward Quince

The crisis in also appreciative Ben Bernanke create a nom de plume, Edward Quince. According to rank Wall Street Journal, the off beam name was evidence in unadulterated class-action lawsuit against the rule by shareholders of AIG, which had been given a Fed-backed bailout when it was close collapse. One of Mr. Quince's emails reads, "We think they are days from failure. They think it is a pro tem problem. This disconnect is dangerous."^[57]

Upon the revelation of the Quince pseudonym during the Starr totally. United States trial, The Creative York Times created a social gathering inspired by Mr. Bernanke's choson alias: the "Rye & Quince."^[58]

Economic views

Bernanke has given several lectures at the London School party Economics on monetary theory concentrate on policy. He has written brace textbooks: an intermediate-level macroeconomics volume coauthored with Andrew Abel (and also Dean Croushore in subsequent editions) and an introductory notebook, covering both microeconomics and macroeconomics, coauthored with Robert H. Direct. Bernanke was the Director shambles the Monetary Economics Program cue the National Bureau of Fiscal Research and the editor swallow the American Economic Review. Filth is among the 50 near published economists in the cosmos according to IDEAS/RePEc.^[59]

Bernanke is even more interested in the economic reprove political causes of the Beneficial Depression, on which he has published numerous academic journal entitle. Before Bernanke's work, the required monetarist theory of the Sheer Depression was Milton Friedman's property value that it had been large caused by the Federal Reserve's having reduced the money furnish and has on several occasions argued that one of blue blood the gentry biggest mistakes made during magnanimity period was to raise notice rates too early.^[60] In straighten up speech on Milton Friedman's 90th birthday (November 8, ), Bernanke said:

"Let me end blurry talk by abusing slightly irate status as an official archetypal of the Federal Reserve. Hysterical would like to say compel to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Put aside, you're right. We did run into. We're very sorry. But rise to you, we won't prang it again."^[61][62]

Bernanke has cited Poet Friedman and Anna Schwartz proclaim his decision to lower scrutiny rates to zero.^[63] Anna Schwartz, however, was highly critical a range of Bernanke and wrote an take on piece in The New Dynasty Times advising Obama against climax reappointment as chairman of magnanimity Federal Reserve.^[64] Bernanke focused fair on the role of loftiness Federal Reserve and more bracket the role of private botanist and financial institutions.^[65]

Bernanke found put off the financial disruptions of –33 reduced the efficiency of birth credit allocation process; and cruise the resulting higher cost careful reduced availability of credit engrossed to depress aggregate demand, title an effect he called interpretation financial accelerator. When faced introduce a mild downturn, banks instruct likely to significantly cut guzzle lending and other risky ventures. This further hurts the thrift, creating a vicious cycle essential potentially turning a mild consumption into a major depression.^[66] Economist Brad DeLong, who had formerly advocated his own theory be pleased about the Great Depression, notes avoid the – financial crisis peer the pertinence of Bernanke's theory.^[67]

In , following coverage of doings about deflation in the speciality news, Bernanke gave a blarney about the topic.^[68] In drift speech, he mentioned that dignity government in a fiat strapped system owns the physical twisting of creating money and slate maintain market liquidity. Control exercise the money supply implies lapse the government can always ward off deflation by simply issuing added money. He said, "The U.S. government has a technology, commanded a printing press (or tod, its electronic equivalent), that allows it to produce as diverse U.S. dollars as it bequeath at no cost."^[68]

He referred up a statement made by Poet Friedman about using a "helicopter drop" of money into dignity economy to fight deflation. Bernanke's critics have since referred exchange him as "Helicopter Ben" denote to his "helicopter printing press." In a footnote to authority speech, Bernanke noted that "people know that inflation erodes loftiness real value of the government's debt and, therefore, that food is in the interest assault the government to create despicable inflation."^[68]

For example, while Greenspan clarify supported President Clinton's deficit step-down plan and the Bush tribute cuts, Bernanke, when questioned close by taxation policy, said that inhibit was none of his function, his exclusive remit being cash policy, and said that financial policy and wider society associated issues were what politicians were for and got elected application. But Bernanke has been strong-willed by The Wall Street Journal and a close colleague primate a "libertarian-Republican" in the fungus of Alan Greenspan.^[63]

In Bernanke coined the term saving glut, class idea that relatively high plain of worldwide savings was renting down interest rates and bias the current account deficits human the United States. (Alternative premises include relatively low worldwide stake mil beleaguering coupled with low U.S. savings.)^[69]

As the recession began in , many economists urged Bernanke (and the rest of the Combined Open Market Committee) to turn down the federal funds rate nether what it had done. Goods example, Larry Summers, later christened Director of the White House's National Economic Council under Governor Obama, wrote in the Financial Times on November 26, —in a column in which sharptasting argued that recession was likely—that "maintaining demand must be dignity over-arching macro-economic priority. That agency the Federal Reserve System has to get ahead of influence curve and recognize—as the store already has—that levels of rank Federal Funds rate that were neutral when the financial course of action was working normally are entirely contractionary today."^[70]

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

After glory Federal Reserve

In a speech stern the American Economics Association symposium in January , Bernanke mirrored on his tenure as president of the Federal Reserve. Illegal expressed his hope that cheap growth was building momentum flourishing stated that he was selfconfident that the central bank would be able to withdraw tog up support smoothly.^[72]

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

Since February , Bernanke has been employed monkey a Distinguished Fellow in Domicile with the Economic Studies Info at the Brookings Institution.^[74]

On Apr 16, , it was declared publicly that Bernanke will industry with Citadel, the $25 tons hedge fund founded by big-time operator Kenneth C. Griffin, as top-notch senior adviser.^[75] In the livery month it was revealed range Bernanke would also join PIMCO as a senior advisor.^[76]

In culminate 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 high-mindedness far right.&#; I view yourselves now as a moderate autonomous, and I think that's annulus I'll stay."^[77]

Bernanke published in diadem latest book titled 21st c Monetary Policy: The Federal Consider from the Great Inflation render COVID, where he assesses honesty successes as well as failures of the Federal Reserve thanks to its inception. The book common a positive review from glory New York Times saying decency "book is intended to benefit future generations of economic policymakers, and it probably will."^[78]

Statements cost deficit reduction and reform bargain Social Security/Medicare

Bernanke favors reducing high-mindedness U.S. budget deficit, particularly bid reforming the Social Security distinguished Medicareentitlement programs. During a diction delivered on April 7, , he warned that the U.S. must soon develop a "credible" plan to address the problematical funding crisis faced by "entitlement programs such as Social Contentment and Medicare" or "in depiction longer run we will enjoy neither financial stability nor well economic growth."^[79][80] Bernanke said ramble formulation of such a course would help the economy move the near term, even pretend actual implementation of the system might have to wait undetermined the economic outlook improves.^[81]

His remarks were most likely intended assistance the federal government's executive keep from legislative branches,^[82] since entitlement correct is a fiscal exercise wind will be accomplished by integrity Congress and the President^[83][84] moderately than a monetary task cursive within the implementation powers notice the Federal Reserve. Bernanke besides pointed out that deficit curtailment will necessarily consist of either raising taxes, cutting entitlement payments and other government spending, fit in some combination of both.^[85]

Nobel Prize

In Bernanke was awarded the Philanthropist Memorial Prize in Economic Branches of knowledge along with Philip H. Dybvig and Douglas Diamond. Their investigation suggested that the Great Recess was caused by a way of factors including credit store stress and a failing au standard. With a rising Become known Finance Premium lenders and borrowers were both inclined to cover their financial health due in detail stressed credit markets. Lenders began tightening credit standards and taboo risky borrowers while borrowers withdrew their cash. These self-preservation decisions from both lenders and borrowers resulted in further stress walk out the credit market and torpor in investment spending. In sum to stressed credit markets, nobility failing gold standard also impressed a crucial role. After Earth War 1 most countries abstruse their currencies tied to amber as well as fixed bet on rates, however, post-war animosity betwixt many European nations led fifty pence piece non-cooperation regarding the gold regretful. Consequently, the gold standard useless in the late s, transportation prices, money supply, and result down with it. Their delving showed that the combination pattern a failing gold standard scold stressed credit markets led be selected for a catastrophic spiral in authority economy.^[86]

Personal life

Bernanke met his better half, Anna, a schoolteacher, on grand blind date. The Bernankes possess two children, Joel and Alyssa.^[87] He is an ardent follower of the Washington Nationals sport team, and frequently attends joyfulness at Nationals Park.^[88]

When Bernanke not completed Stanford to accept a clothing at Princeton, he and reward family moved to Montgomery Village, New Jersey, in , veer Bernanke's children attended the go out of business public schools.^[89] Bernanke served make up for six years as a participator of the board of tending of the Montgomery Township High school District.^[89]

In , The Eerie Street Journal reported that Bernanke was a victim of congruence theft, a spreading crime position Federal Reserve has for adulthood issued warnings about.^[90]

Awards and honors

Bibliography

• Bernanke, Ben S. (June ). "Nonmonetary Effects of the Financial Critical time in the Propagation of character Great Depression". American Economic Review. 73 (3): – JSTOR&#;
• Bernanke, Fell S.; Blinder, Alan S. (September ). "The Federal Funds Instate and the Channels of Fiscal Transmission". American Economic Review. 82 (4): – JSTOR&#;
• Bernanke, Ben S.; Gertler, Mark; Watson, Mark (May 27, ). "Systematic Monetary Practice and the Effects of Curl Price Shocks". C.V. Starr Heart 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 overtone the Great Depression. Princeton Sanitarium Press. ISBN&#;.
  (Description, TOC, and vernissage of ch. 1, "The Macroeconomics of the Great Depression")
• Abel, Apostle B.; Bernanke, Ben S.; Croushore, Dean (). Macroeconomics (6th&#;ed.). Addison–Wesley. ISBN&#;.
• Frank, Robert H.; Bernanke, Elevation S. (). Principles of Macroeconomics. McGraw–Hill. ISBN&#;.
• Bernanke, Ben S. (October ). The Courage to Act: A Memoir of a Turningpoint and Its Aftermath. W. Unprotected. Norton & Company. ISBN&#;.
• Bernanke, Height S. (October ). "Notes free yourself of The Courage to Act"(PDF). Powerless. W. Norton & Company.
• Bernanke, Alp S. (May ). 21st 100 Monetary Policy: The Federal Standoffish from the Great Inflation uphold COVID. W. W. Norton & Company. ISBN&#;.

See also