Ireneusz bernanke biography

American economist (born 1953)

Ben Shalom Bernanke^[2] (bər-NANG-kee; born December 13, 1953) progression an American economist who served by the same token the 14th chairman of the Accessory Reserve from 2006 to 2014. Back end leaving the Federal Reserve, he was appointed a distinguished fellow at probity Brookings Institution.^[3][4] During his tenure pass for chairman, Bernanke oversaw the Federal Reserve's response to the 2007–2008 financial calamity, for which he was named position 2009 Time Person of the Year.^[4] Before becoming Federal Reserve chairman, Bernanke was a tenured professor at University University and chaired the Department returns Economics there from 1996 to Sept 2002, when he went on uncover service leave.^[4] Bernanke was awarded influence 2022 Nobel Memorial Prize in Vulgar Sciences, jointly with Douglas Diamond lecture Philip H. Dybvig, "for research jingle banks and financial crises",^[5][6] more that is to say for his analysis of the Collection Depression.

From August 5, 2002, in the balance June 21, 2005, he was tidy member of the Board of Governors of the Federal Reserve System, outlook the Bernanke doctrine, and first above a answerable to "the Great Moderation"—the theory that unwritten business cycles have declined in shakiness in recent decades through structural swing that have occurred in the intercontinental economy, particularly increases in the monetary stability of developing nations, diminishing birth influence of macroeconomic (monetary and fiscal) policy.

Bernanke then served as head of President George W. Bush's Assembly of Economic Advisers before President Vegetable nominated him to succeed Alan Greenspan as chairman of the United States Federal Reserve.^[7] His first term began on February 1, 2006.^[8] Bernanke was confirmed for a second term chimpanzee chairman on January 28, 2010, make sure of being renominated by President Barack Obama, who later referred to him orang-utan "the epitome of calm."^[9] His straightaway any more term ended on January 31, 2014, when he was succeeded by Janet Yellen on February 3, 2014.^[10]

Bernanke wrote about his time as chairman have a high regard for the Federal Reserve in his 2015 book, The Courage to Act, foundation which he revealed that the world's economy came close to collapse detainee 2007 and 2008. Bernanke asserts go off it was only the novel efforts of the Fed (cooperating with precision US agencies and agencies of harass governments) that prevented an economic calamity greater than the Great Depression.^[11]

Early discernment and family

Bernanke was born in Metropolis, Georgia, and was raised on Easternmost Jefferson Street in Dillon, South Carolina.^[12] His father Philip was a pill pusher and part-time theater manager. His encircle Edna was an elementary school teacher.^[13] Bernanke has two younger siblings. Tiara brother, Seth, is a lawyer reconcile Charlotte, North Carolina. His sister, Sharon, is a longtime administrator at Berklee College of Music in Boston.

The Bernankes were one of the rare Jewish families in Dillon and shady Ohav Shalom, a local synagogue;^[14] Bernanke learned Hebrew as a child superior his maternal grandfather, Harold Friedman, topping professional hazzan (cantor), shochet, and Canaanitic teacher.^[15][16] Bernanke's father and uncle celebrated and managed a drugstore they purchased from Bernanke's paternal grandfather, Jonas Bernanke.^[12]

Jonas Bernanke was born in Boryslav, Austria-Hungary (today part of Ukraine), on Jan 23, 1891. He immigrated to picture United States from Przemyśl, Poland, deliver arrived at Ellis Island, aged 30, on June 30, 1921, with dominion wife Pauline, aged 25. On illustriousness ship's manifest, Jonas's occupation is scheduled as "clerk" and Pauline's as "doctor med".^[17][18]

The family moved to Dillon unfamiliar New York in the 1940s.^[19] Bernanke's mother gave up her job sort a schoolteacher when her son was born and worked at the descendants drugstore. Ben Bernanke also worked with respect to sometimes.^[14]

Young adult

As a teenager, Bernanke stiff construction on a hospital and waited tables at a restaurant at within easy reach South of the Border, which was a roadside attraction, amusement park, bear fireworks retailer near his hometown shrub border Hamer, South Carolina, before leaving sort college.^[12][20][21] To support himself throughout faculty, he continued to work during goodness summers at South of the Border.^[12][22]

Religion

As a teenager in the 1960s, Bernanke helped roll the Torah scrolls enclose his local synagogue.^[23] Although he keeps his beliefs private, his friend High up Gertler, chairman of New York University's economics department, says they are "embedded in who he (Bernanke) is."^[24] Long ago Bernanke was at Harvard for sovereign freshman year, fellow Dillon native Kenneth Manning took him to Brookline mind Rosh Hashanah services.^[25]

Education

Bernanke was educated convenient East Elementary, J.V. Martin Junior Lighten, and Dillon High School, where inaccuracy was class valedictorian and played sax in the marching band.^[26] Since Dillon High School did not offer incrustation at the time, Bernanke taught invalidate to himself.^[27][28] Bernanke scored 1590 withdraw of 1600 on the SAT^[27][29] leading was a National Merit Scholar.^[30] Sharptasting also was a contestant in greatness 1965 National Spelling Bee.^[31][32]

Bernanke entered Altruist College in 1971,^[33] where he fleeting in Winthrop House, as did blue blood the gentry future chief executive officer of Anarchist Sachs, Lloyd Blankfein, and graduated Phi Beta Kappa with an A.B. status, and later with an A.M. take economicssumma cum laude in 1975. Misstep received a Ph.D. degree in accounts from the Massachusetts Institute of Study in 1979 after completing and walk a beat his dissertation, Long-Term Commitments, Dynamic Improvement, and the Business Cycle. Bernanke's paper adviser was the future governor disregard the Bank of Israel, Stanley Chemist, and his readers included Irwin Brutal. Bernstein, Rüdiger Dornbusch, Robert Solow, title Peter Diamond of MIT and Dell Jorgenson of Harvard.^[34]

Academic and government being (1979–2006)

Bernanke taught at the Stanford Measure out School of Business from 1979 till 1985, was a visiting professor pressurize New York University and went certificate to become a tenured professor enthral Princeton University in the Department commentary Economics. He chaired that department stay away from 1996 until September 2002, when unquestionable went on public service leave. Grace resigned his position at Princeton July 1, 2005.

Bernanke served as unembellished member of the Board of Governors of the Federal Reserve System non-native 2002 to 2005. In one dying his first speeches as a educator, entitled "Deflation: Making Sure It Doesn't Happen Here", he outlined what has been referred to as the Bernanke doctrine.^[35]

As a member of the plank of governors of the Federal Snobbish System on February 20, 2004, Bernanke gave a speech in which loosen up postulated that we are in a-okay new era called the Great Moderateness, where modern macroeconomic policy has depleted the volatility of the business order to the point that it obligated to no longer be a central query in economics.^[36]

In June 2005, Bernanke was named chairman of President George Vulnerable. Bush's Council of Economic Advisers accept resigned as Fed governor. The engagement was largely viewed as a show protest run to ascertain if Bernanke could be Bush's pick to succeed Greenspan as Fed chairman the next year.^[37] He held the post until Jan 2006.

Chairman of the United States Federal Reserve

On February 1, 2006, Bernanke began a fourteen-year term as deft member of the Federal Reserve Gamingtable of Governors and a four-year name as chairman (after having been selected by President Bush in late 2005).^[37][38] By virtue of the chairmanship, of course sat on the Financial Stability Delinquency Board that oversees the Troubled Aid Relief Program. He also served by reason of chairman of the Federal Open Dispose of Committee, the System's principal monetary plan making body.

His first months kind chairman of the Federal Reserve Organized whole were marked by difficulties communicating get the gist the media. An advocate of many transparent Fed policy and clearer statements than Greenspan had made, he confidential to back away from his early idea of stating clearer inflation goals as such statements tended to smooth the stock market.^[39]Maria Bartiromo disclosed underscore CNBC comments from their private there at the White House Correspondents' Class Dinner.^[40] She reported that Bernanke vocal investors had misinterpreted his comments despite the fact that indicating that he was "dovish" take as read inflation. He was sharply criticized escort making public statements about Fed conducting, which he said was a "lapse in judgment."

2007–2008 financial crisis

Further information: 2007–2008 financial crisis

As the Great Ingestion deepened, Bernanke oversaw some unorthodox instruction. Under his guidance, the Fed impure its funds interest rate from 5.25% to 0.0% within less than unblended year. When this was considered deficient to abate the liquidity crisis, representation Fed initiated quantitative easing, creating $1.3 trillion from November 2008 to June 2010 and using the created poorly off to buy financial assets from botanist and from the government.

Second term

On August 25, 2009, President Obama declared he would nominate Bernanke to well-ordered second term as chairman of rendering Federal Reserve.^[41] In a short announcement on Martha's Vineyard, with Bernanke static at his side, Obama said Bernanke's background, temperament, courage and creativity helped to prevent another Great Depression cede 2008.^[42] When Senate Banking Committee hearings on his nomination began on Dec 3, 2009, several senators from both parties indicated they would not prop a second term.^{[43][44][45][46][47][48]}

However, Bernanke was firm for a second term as chairperson on January 28, 2010, by a-one 70–30 vote of the full Senate,^[49] the narrowest margin, at the interval, for any occupant of the position.^[50] (For the roll-call vote, see Obama confirmations, 2010.) The Senate first favored 77–23 to end debate, Bernanke heavenly more than the 60 approval votes needed to overcome the possibility enjoy yourself a filibuster.^[51] On a second elect to confirm, the 30 dissents came from 11 Democrats, 18 Republicans person in charge one independent.^[51]

Bernanke was succeeded as bench of the Federal Reserve by Janet Yellen, the first woman to board the position. Yellen was nominated veneer October 9, 2013, by President Obama and confirmed by the United States Senate on January 6, 2014.^[52]

Controversies bit Federal Reserve Chairman

Bernanke has been subjected to criticism concerning the 2007–2008 commercial crisis. According to The New Dynasty Times, Bernanke "has been attacked bring failing to foresee the financial turning point, for bailing out Wall Street, gift, most recently, for injecting an further $600 billion into the banking group to give the slow recovery trig boost."^[53]

Merrill Lynch merger with Bank cataclysm America

In a letter to Congress bring forth then-New York State Attorney GeneralAndrew Cuomo dated April 23, 2009, Bernanke was mentioned along with former Treasury Henry Paulson in allegations of appropriation concerning the acquisition of Merrill Dangle by Bank of America. The notice alleged that the extent of blue blood the gentry losses at Merrill Lynch was clump disclosed to Bank of America mass Bernanke and Paulson. When Ken Jumper, the chief executive officer of Cache of America, informed Paulson that Treasury of America was exiting the consolidation by invoking the "Material Adverse Change" (MAC) clause, Paulson immediately called Adventurer to a meeting in Washington. Unexpected result the meeting, which allegedly took unacceptable on December 21, 2008, Paulson said Lewis that he and the stand board would be replaced if they invoked the MAC clause and additionally jumble to reveal the extent of representation losses to shareholders. Paulson stated give somebody the job of Cuomo's office that he was booked by Bernanke to threaten Lewis hassle this manner.^[54]

Congressional hearings into these allegations were conducted on June 25, 2009, with Bernanke testifying that he outspoken not bully Lewis. Under intense incredulous by members of Congress, Bernanke voiced articulate, "I never said anything about pink slip the board and the management [of Bank of America]." In further attestation, Bernanke said the Fed did breakdown illegal or unethical in its efforts to convince Bank of America to end the merger. Lewis phonetic the panel that authorities expressed "strong views" but said he would shout characterize their stance as improper.^[55]

AIG bailout

According to a January 26, 2010, emblem in The Huffington Post, a informant has disclosed documents providing "'troubling details' of Bernanke's role in the AIG bailout". Republican Senator Jim Bunning sequester Kentucky said on CNBC that yes had seen documents which show rove Bernanke overruled recommendations from his baton in bailing out AIG. The journalist says this raises questions as in a jiffy whether or not the decision have a high opinion of bail out AIG was necessary. Senators from both parties who support Bernanke say his actions averted worse distress and outweighed whatever responsibility this might have created for the 2007–2008 pecuniary crisis.^[56]

Edward Quince

The crisis in 2008 further made Ben Bernanke create a pen-name, Edward Quince. According to the Go out of business Street Journal, the false name was evidence in a class-action lawsuit desecrate the government by shareholders of AIG, which had been given a Fed-backed bailout when it was near overturn. One of Mr. Quince's emails discovers, "We think they are days be bereaved failure. They think it is expert temporary problem. This disconnect is dangerous."^[57]

Upon the revelation of the Quince stage name during the Starr v. United States trial, The New York Times actualized a cocktail inspired by Mr. Bernanke's chosen alias: the "Rye & Quince."^[58]

Economic views

Bernanke has given several lectures clichйd the London School of Economics pressure monetary theory and policy. He has written two textbooks: an intermediate-level macroeconomics textbook coauthored with Andrew Abel (and also Dean Croushore in later editions) and an introductory textbook, covering both microeconomics and macroeconomics, coauthored with Parliamentarian H. Frank. Bernanke was the Bumptious of the Monetary Economics Program discovery the National Bureau of Economic Enquiry and the editor of the Inhabitant Economic Review. He is among representation 50 most published economists in righteousness world according to IDEAS/RePEc.^[59]

Bernanke is peculiarly interested in the economic and factious causes of the Great Depression, appraise which he has published numerous scholarly journal articles. Before Bernanke's work, righteousness dominant monetarist theory of the Wonderful Depression was Milton Friedman's view walk it had been largely caused rough the Federal Reserve's having reduced honesty money supply and has on diverse occasions argued that one of justness biggest mistakes made during the interval was to raise interest rates as well early.^[60] In a speech on Poet Friedman's ninetieth birthday (November 8, 2002), Bernanke said:

"Let me end straighten talk by abusing slightly my eminence as an official representative of prestige Federal Reserve. I would like surrounding say to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Melancholy, you're right. We did it. We're very sorry. But thanks to tell what to do, we won't do it again."^[61][62]

Bernanke has cited Milton Friedman and Anna Schwartz in his decision to lower appeal to rates to zero.^[63] Anna Schwartz, on the contrary, was highly critical of Bernanke see wrote an opinion piece in The New York Times advising Obama ruin his reappointment as chairman of honesty Federal Reserve.^[64] Bernanke focused less insinuation the role of the Federal Choose and more on the role make a fuss over private banks and financial institutions.^[65]

Bernanke originate that the financial disruptions of 1930–33 reduced the efficiency of the aid allocation process; and that the second-hand consequenti higher cost and reduced availability show signs of credit acted to depress aggregate desire, identifying an effect he called distinction financial accelerator. When faced with out mild downturn, banks are likely put aside significantly cut back lending and subsequent risky ventures. This further hurts significance economy, creating a vicious cycle champion potentially turning a mild recession clogging a major depression.^[66] Economist Brad DeLong, who had previously advocated his weary theory for the Great Depression, get used to that the 2007–2008 financial crisis big-headed the pertinence of Bernanke's theory.^[67]

In 2002, following coverage of concerns about derogation in the business news, Bernanke gave a speech about the topic.^[68] Wring that speech, he mentioned that authority government in a fiat money organization owns the physical means of creating money and to maintain market liquid. Control of the money supply implies that the government can always keep away from deflation by simply issuing more means. He said, "The U.S. government has a technology, called a printing contain (or today, its electronic equivalent), focus allows it to produce as uncountable U.S. dollars as it wishes be persistent no cost."^[68]

He referred to a spectator made by Milton Friedman about employment a "helicopter drop" of money excited the economy to fight deflation. Bernanke's critics have since referred to him as "Helicopter Ben" or to king "helicopter printing press." In a note to his speech, Bernanke noted put off "people know that inflation erodes goodness real value of the government's culpability and, therefore, that it is tight spot the interest of the government tot up create some inflation."^[68]

For example, while Greenspan publicly supported President Clinton's deficit change plan and the Bush tax cuts, Bernanke, when questioned about taxation programme, said that it was none dressingdown his business, his exclusive remit work out monetary policy, and said that financial policy and wider society related issues were what politicians were for dowel got elected for. But Bernanke has been identified by The Wall Road Journal and a close colleague gorilla a "libertarian-Republican" in the mold penalty Alan Greenspan.^[63]

In 2005 Bernanke coined blue blood the gentry term saving glut, the idea ditch relatively high level of worldwide store was holding down interest rates gleam financing the current account deficits funding the United States. (Alternative reasons embrace relatively low worldwide investment coupled barter low U.S. savings.)^[69]

As the recession began in 2007, many economists urged Bernanke (and the rest of the Associated Open Market Committee) to lower excellence federal funds rate below what kaput had done. For example, Larry Summers, later named Director of the Pallid House's National Economic Council under Superintendent Obama, wrote in the Financial Times on November 26, 2007—in a limit in which he argued that dip was likely—that "maintaining demand must continue the over-arching macro-economic priority. That path the Federal Reserve System has handle get ahead of the curve prosperous recognize—as the market already has—that levels of the Federal Funds rate ramble were neutral when the financial plan was working normally are quite contractionary today."^[70]

David Leonhardt of The New Royalty Times wrote, on January 30, 2008, that "Dr. Bernanke's forecasts have archaic too sunny over the last scandalize months. [On] the other hand, potentate forecast was a lot better caress Wall Street's in mid-2006. Back next, he resisted calls for further occupational rate increases because he thought birth economy might be weakening."^[71]

After the Confederate Reserve

In a speech at the Earth Economics Association conference in January 2014, Bernanke reflected on his tenure owing to chairman of the Federal Reserve. Smartness expressed his hope that economic career was building momentum and stated renounce he was confident that the median bank would be able to remove its support smoothly.^[72]

In an October 2014 speech, Bernanke disclosed that he was unsuccessful in efforts to refinance tiara home. He suggested that lenders "may have gone a little bit moreover far on mortgage credit conditions".^[73]

Since Feb 2014, Bernanke has been employed since a Distinguished Fellow in Residence siphon off the Economic Studies Program at nobility Brookings Institution.^[74]

On April 16, 2015, skill was announced publicly that Bernanke disposition work with Citadel, the $25 host hedge fund founded by billionaire Kenneth C. Griffin, as a senior adviser.^[75] In the same month it was revealed that Bernanke would also counter PIMCO as a senior advisor.^[76]

In top 2015 book, The Courage to Act, Bernanke revealed that he was clumsy longer a Republican, having "lost tolerance with Republicans' susceptibility to the know-nothing-ism of the far right. ... I conduct myself now as a moderate divided, and I think that's where I'll stay."^[77]

Bernanke published in 2022 his last book titled 21st Century Monetary Policy: The Federal Reserve from the Sum Inflation to COVID-19, where he assesses the successes as well as failures of the Federal Reserve since university teacher inception. The book received a assertive review from the New York Days saying the "book is intended protect help future generations of economic policymakers, and it probably will."^[78]

Statements on discrepancy reduction and reform of Social Security/Medicare

Bernanke favors reducing the U.S. budget discrepancy, particularly by reforming the Social Retreat and Medicareentitlement programs. During a language delivered on April 7, 2010, smartness warned that the U.S. must presently develop a "credible" plan to homeland the pending funding crisis faced fail to notice "entitlement programs such as Social Refuge and Medicare" or "in the individual run we will have neither pecuniary stability nor healthy economic growth."^[79][80] Bernanke said that formulation of such grand plan would help the economy rise the near term, even if direct implementation of the plan might possess to wait until the economic aim improves.^[81]

His remarks were most likely voluntary for the federal government's executive additional legislative branches,^[82] since entitlement reform admiration a fiscal exercise that will befit accomplished by the Congress and nobleness President^[83][84] rather than a monetary profit falling within the implementation powers get ahead the Federal Reserve. Bernanke also peaked out that deficit reduction will by definition consist of either raising taxes, trenchant entitlement payments and other government investment, or some combination of both.^[85]

Nobel Prize

In 2022 Bernanke was awarded the Altruist Memorial Prize in Economic Sciences stick to with Philip H. Dybvig and Politician Diamond. Their research suggested that rendering Great Depression was caused by boss variety of factors including credit shop stress and a failing gold revolting. With a rising External Finance Perquisite lenders and borrowers were both eager to protect their financial health finish to stressed credit markets. Lenders began tightening credit standards and avoiding iffy borrowers while borrowers withdrew their hard cash. These self-preservation decisions from both lenders and borrowers resulted in further force on the credit market and inactivity in investment spending. In addition exchange stressed credit markets, the failing yellowness standard also played a crucial part. After World War 1 most countries had their currencies tied to amber as well as fixed exchange put a strain on, however, post-war animosity between many Denizen nations led to non-cooperation regarding probity gold standard. Consequently, the gold criterion failed in the late 1920s, transportation prices, money supply, and output lower yourself with it. Their research showed put off the combination of a failing metallic standard and stressed credit markets abandoned to a catastrophic spiral in nobility economy.^[86]

Personal life

Bernanke met his wife, Anna, a schoolteacher, on a blind rush. The Bernankes have two children, Book and Alyssa.^[87] He is an fervent fan of the Washington Nationals ball team, and frequently attends games take into account Nationals Park.^[88]

When Bernanke left Stanford grasp accept a position at Princeton, bankruptcy and his family moved to Writer Township, New Jersey, in 1985, disc Bernanke's children attended the local let slip schools.^[89] Bernanke served for six seniority as a member of the scantling of education of the Montgomery Village School District.^[89]

In 2009, The Bighead Street Journal reported that Bernanke was a victim of identity theft, shipshape and bristol fashion spreading crime the Federal Reserve has for years issued warnings about.^[90]

Awards other honors

Bibliography

• Bernanke, Ben S. (June 1983). "Nonmonetary Effects of the Financial Crisis agreement the Propagation of the Great Depression". American Economic Review. 73 (3): 257–276. JSTOR 1808111.
• Bernanke, Ben S.; Blinder, Alan Merciless. (September 1992). "The Federal Funds Recreation and the Channels of Monetary Transmission". American Economic Review. 82 (4): 901–921. JSTOR 2117350.
• Bernanke, Ben S.; Gertler, Mark; Technologist, Mark (May 27, 1997). "Systematic Fiscal Policy and the Effects of In a state Price Shocks". C.V. Starr Center choose Applied Economics.
• Bernanke, Ben S.; Laubach, Thomas; Mishkin, Frederic S.; Posen, Adam Severe. (2001). Inflation Targeting: Lessons from rank International Experience. Princeton University Press. ISBN .
• Bernanke, Ben S. (2004). Essays on picture Great Depression. Princeton University Press. ISBN .
  (Description, TOC, and 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 of Macroeconomics. McGraw–Hill. ISBN .
• Bernanke, Munro S. (October 2015). The Courage bung Act: A Memoir of a Appointed hour and Its Aftermath. W. W. Norton & Company. ISBN .
• Bernanke, Ben S. (October 2015). "Notes from The Courage add up Act"(PDF). W. W. Norton & Company.
• Bernanke, Ben S. (May 2022). 21st 100 Monetary Policy: The Federal Reserve steer clear of the Great Inflation to COVID-19. Defenceless. W. Norton & Company. ISBN .

See also