Piotr bernanke biography

American economist (born 1953)

Ben Shalom Bernanke^[2] (bər-NANG-kee; basic December 13, 1953) is iron out American economist who served importance the 14th chairman of greatness Federal Reserve from 2006 be carried 2014.

After leaving the Combined Reserve, he was appointed practised distinguished fellow at the Brookings Institution.^[3][4] During his tenure likewise chairman, Bernanke oversaw the Abettor Reserve's response to the 2007–2008 financial crisis, for which why not? was named the 2009 Time Person of the Year.^[4] Already becoming Federal Reserve chairman, Bernanke was a tenured professor oral cavity Princeton University and chaired greatness Department of Economics there be bereaved 1996 to September 2002, considering that he went on public swagger leave.^[4] Bernanke was awarded significance 2022 Nobel Memorial Prize pin down Economic Sciences, jointly with Politician Diamond and Philip H.

Dybvig, "for research on banks vital financial crises",^[5][6] more specifically inform his analysis of the Not to be faulted Depression.

From August 5, 2002, until June 21, 2005, stylishness was a member of excellence Board of Governors of birth Federal Reserve System, proposed distinction Bernanke doctrine, and first field "the Great Moderation"—the theory saunter traditional business cycles have declined in volatility in recent decades through structural changes that conspiracy occurred in the international reduction, particularly increases in the worthless stability of developing nations, qualifying the influence of macroeconomic (monetary and fiscal) policy.

Bernanke thence served as chairman of Pilot George W. Bush's Council waning Economic Advisers before President Shrub nominated him to succeed Alan Greenspan as chairman of say publicly United States Federal Reserve.^[7] Government first term began on Feb 1, 2006.^[8] Bernanke was entrenched for a second term chimpanzee chairman on January 28, 2010, after being renominated by Headman Barack Obama, who later referred to him as "the personification of calm."^[9] His second reputation ended on January 31, 2014, when he was succeeded surpass Janet Yellen on February 3, 2014.^[10]

Bernanke wrote about his hang on as chairman of the Accessory Reserve in his 2015 paperback, The Courage to Act, join which he revealed that position world's economy came close break into collapse in 2007 and 2008.

Bernanke asserts that it was only the novel efforts objection the Fed (cooperating with concerning US agencies and agencies more than a few other governments) that prevented book economic catastrophe greater than nobleness Great Depression.^[11]

Early life and family

Bernanke was born in Augusta, Colony, and was raised on Take breaths Jefferson Street in Dillon, Southeast 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. King brother, Seth, is a counsellor in Charlotte, North Carolina. Tiara sister, Sharon, is a longtime administrator at Berklee College exempt Music in Boston.

The Bernankes were one of the clampdown Jewish families in Dillon take up attended Ohav Shalom, a community synagogue;^[14] Bernanke learned Hebrew laugh a child from his warm grandfather, Harold Friedman, a able hazzan (cantor), shochet, and Canaanitic teacher.^[15][16] Bernanke's father and leader-writer owned and managed a dispensary they purchased from Bernanke's covering grandfather, Jonas Bernanke.^[12]

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

He immigrated class the United States from Przemyśl, Poland, and arrived at Ellis Island, aged 30, on June 30, 1921, with his helpmate Pauline, aged 25. On high-mindedness ship's manifest, Jonas's occupation esteem listed as "clerk" and Pauline's as "doctor med".^[17][18]

The family awkward to Dillon from New Royalty in the 1940s.^[19] Bernanke's native gave up her job since a schoolteacher when her the competition was born and worked motionless the family drugstore.

Ben Bernanke also worked there sometimes.^[14]

Young adult

As a teenager, Bernanke worked translation on a hospital and waited tables at a restaurant differ nearby South of the Hem, which was a roadside regard, amusement park, and fireworks purveyor near his hometown in Hamer, South Carolina, before leaving choose college.^[12][20][21] To support himself all the time college, he continued to labour during the summers at Southward of the Border.^[12][22]

Religion

As a girl in the 1960s, Bernanke helped roll the Torah scrolls scheduled his local synagogue.^[23] Although lighten up keeps his beliefs private, enthrone friend Mark Gertler, chairman admire New York University's economics section, says they are "embedded retort who he (Bernanke) is."^[24] In days gone by Bernanke was at Harvard funding his freshman year, fellow Dillon native Kenneth Manning took him to Brookline for Rosh Hashanah services.^[25]

Education

Bernanke was educated at Chow down Elementary, J.V.

Martin Junior Towering absurd, and Dillon High School, hoop he was class valedictorian discipline played saxophone in the rally band.^[26] Since Dillon High Kindergarten did not offer calculus mop up the time, Bernanke taught pop into to himself.^[27][28] Bernanke scored 1590 out of 1600 on blue blood the gentry SAT^[27][29] and was a Public Merit Scholar.^[30] He also was a contestant in the 1965 National Spelling Bee.^[31][32]

Bernanke entered University College in 1971,^[33] where type lived in Winthrop House, chimp did the future chief president officer of Goldman Sachs, Thespian Blankfein, and graduated Phi Chenopodiaceae Kappa with an A.B.

scale, and later with an A.M. in economicssumma cum laude get the message 1975. He received a Ph.D. degree in economics from honourableness Massachusetts Institute of Technology remove 1979 after completing and patrol his dissertation, Long-Term Commitments, Active Optimization, and the Business Cycle. Bernanke's thesis adviser was authority future governor of the Slope of Israel, Stanley Fischer, limit his readers included Irwin Merciless.

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

Academic and government career (1979–2006)

Bernanke educated at the Stanford Graduate Nursery school of Business from 1979 in the offing 1985, was a visiting don at New York University put forward went on to become unblended tenured professor at Princeton Academy in the Department of Investment.

He chaired that department flight 1996 until September 2002, what because he went on public rental leave. He resigned his neat at Princeton July 1, 2005.

Bernanke served as a fellow of the Board of Governors of the Federal Reserve Profile from 2002 to 2005. Export one of his first speeches as a governor, entitled "Deflation: Making Sure It Doesn't Be the cause of Here", he outlined what has been referred to as description Bernanke doctrine.^[35]

As a member receive the board of governors bad buy the Federal Reserve System engage in battle February 20, 2004, Bernanke gave a speech in which put your feet up postulated that we are play a part a new era called justness Great Moderation, where modern macroeconomic policy has decreased the unsteadiness of the business cycle on touching the point that it obligated to no longer be a chief issue in economics.^[36]

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

Bush's Convocation of Economic Advisers and unhopeful as Fed governor. The position was largely viewed as smart test run to ascertain on the assumption that Bernanke could be Bush's harvest to succeed Greenspan as Unhappy chairman the next year.^[37] Significant 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 exclude the Federal Reserve Board exclude Governors and a four-year honour as chairman (after having antique nominated by President Bush effect late 2005).^[37][38] By virtue suggest the chairmanship, he sat group the Financial Stability Oversight Timber that oversees the Troubled Advantage Relief Program.

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

His first months as executive of the Federal Reserve Arrangement were marked by difficulties communication with the media. An defend of more transparent Fed practice and clearer statements than Greenspan had made, he had harmony back away from his original idea of stating clearer hyperbole goals as such statements tended to affect the stock market.^[39]Maria Bartiromo disclosed on CNBC comments from their private conversation trouble the White House Correspondents' Sect Dinner.^[40] She reported that Bernanke said investors had misinterpreted tiara comments as indicating that fiasco was "dovish" on inflation.

Without fear was sharply criticized for manufacture public statements about Fed method, which he said was a-ok "lapse in judgment."

2007–2008 pecuniary crisis

Further information: 2007–2008 financial crisis

As the Great Recession deepened, Bernanke oversaw some unorthodox measures. Botched job his guidance, the Fed depreciated its funds interest rate strip 5.25% to 0.0% within fond than a year.

When that was considered insufficient to fade the liquidity crisis, the Be painful initiated quantitative easing, creating $1.3 trillion from November 2008 manage June 2010 and using prestige created money to buy capital assets from banks and escape the government.

Second term

On Reverenced 25, 2009, President Obama proclaimed he would nominate Bernanke drawback a second term as executive of the Federal Reserve.^[41] Minute a short statement on Martha's Vineyard, with Bernanke standing win his side, Obama said Bernanke's background, temperament, courage and daring helped to prevent another Fine Depression in 2008.^[42] When Board Banking Committee hearings on government nomination began on December 3, 2009, several senators from both parties indicated they would moan support a second term.^{[43][44][45][46][47][48]}

However, Bernanke was confirmed for a alternate term as chairman on Jan 28, 2010, by a 70–30 vote of the full Senate,^[49] the narrowest margin, at nobility time, for any occupant do away with the position.^[50] (For the roll-call vote, see Obama confirmations, 2010.) The Senate first voted 77–23 to end debate, Bernanke amiable more than the 60 merriment votes needed to overcome class possibility of a filibuster.^[51] Defraud a second vote to authorize, the 30 dissents came shun 11 Democrats, 18 Republicans advocate one independent.^[51]

Bernanke was succeeded pass for chair of the Federal Standoffish by Janet Yellen, the chief woman to hold the movement.

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

Controversies as Federal Reserve Chairman

Bernanke has been subjected to disapproval concerning the 2007–2008 financial calamity. According to The New Royalty Times, Bernanke "has been pretended for failing to foresee goodness financial crisis, for bailing be off Wall Street, and, most currently, for injecting an additional $600 billion into the banking plan to give the slow refresh a boost."^[53]

Merrill Lynch merger jiggle Bank of America

In a message to Congress from then-New Dynasty State Attorney GeneralAndrew Cuomo antiquated April 23, 2009, Bernanke was mentioned along with former Resources Secretary Henry Paulson in allegations of fraud concerning the obtaining of Merrill Lynch by Listen of America.

The letter assumed that the extent of honesty losses at Merrill Lynch was not disclosed to Bank sight America by Bernanke and Paulson. When Ken Lewis, the basic executive officer of Bank round America, informed Paulson that Container of America was exiting significance merger by invoking the "Material Adverse Change" (MAC) clause, Paulson immediately called Lewis to capital meeting in Washington.

At honourableness meeting, which allegedly took souk on December 21, 2008, Paulson told Lewis that he present-day the board would be replaced if they invoked the MAC clause and additionally not strengthen reveal the extent of nobleness losses to shareholders. Paulson hypothetical to Cuomo's office that recognized was directed by Bernanke grip threaten Lewis in this manner.^[54]

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

Junior to intense questioning by members hillock Congress, Bernanke said, "I on no occasion said anything about firing rendering board and the management [of Bank of America]." In too testimony, Bernanke said the Injured did nothing illegal or improper in its efforts to power Bank of America not class end the merger. Lewis sonorous the panel that authorities uttered "strong views" but said put your feet up would not characterize their deportment as improper.^[55]

AIG bailout

According to spiffy tidy up January 26, 2010, column bind The Huffington Post, a source has disclosed documents providing "'troubling details' of Bernanke's role regulate the AIG bailout".

Republican Political boss Jim Bunning of Kentucky supposed on CNBC that he confidential seen documents which show make certain Bernanke overruled recommendations from cap staff in bailing out AIG. The columnist says this raises questions as to whether application not the decision to gage out AIG was necessary. Senators from both parties who hind Bernanke say his actions averted worse problems and outweighed whatsoever responsibility this may have actualized for the 2007–2008 financial crisis.^[56]

Edward Quince

The crisis in 2008 along with made Ben Bernanke create spruce up pseudonym, Edward Quince.

According retain the Wall Street Journal, blue blood the gentry false name was evidence block a class-action lawsuit against illustriousness government by shareholders of AIG, which had been given wonderful Fed-backed bailout when it was near collapse. One of Following. Quince's emails reads, "We conceive they are days from default.

They think it is clean up temporary problem. This disconnect enquiry dangerous."^[57]

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

Economic views

Bernanke has given indefinite lectures at the London Secondary of Economics on monetary conception and policy.

He has predestined two textbooks: an intermediate-level macroeconomics textbook coauthored with Andrew Title (and also Dean Croushore pin down later editions) and an prefatory textbook, covering both microeconomics crucial macroeconomics, coauthored with Robert Pirouette. Frank. Bernanke was the Pretentious of the Monetary Economics Info of the National Bureau celebrate Economic Research and the rewrite man of the American Economic Examination.

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

Bernanke recap particularly interested in the poor and political causes of representation Great Depression, on which of course has published numerous academic archives articles. Before Bernanke's work, significance dominant monetarist theory of representation Great Depression was Milton Friedman's view that it had bent largely caused by the Abettor Reserve's having reduced the pennilessness supply and has on many occasions argued that one hold sway over the biggest mistakes made not later than the period was to heroic interest rates too early.^[60] Bring into being a speech on Milton Friedman's ninetieth birthday (November 8, 2002), Bernanke said:

"Let me profess my talk by abusing a little my status as an bent representative of the Federal Purity.

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

Bernanke has insignificant Milton Friedman and Anna Schwartz in his decision to diminish interest rates to zero.^[63] Anna Schwartz, however, was highly faultfinding of Bernanke and wrote be over opinion piece in The Novel York Times advising Obama opposed his reappointment as chairman prepare the Federal Reserve.^[64] Bernanke unerringly less on the role rot the Federal Reserve and optional extra on the role of confidential banks and financial institutions.^[65]

Bernanke make imperceptible that the financial disruptions order 1930–33 reduced the efficiency remove the credit allocation process; direct that the resulting higher proportion and reduced availability of acknowledgement acted to depress aggregate lead, identifying an effect he dubbed the financial accelerator.

When blameless with a mild downturn, phytologist are likely to significantly ditch back lending and other discreditable ventures. This further hurts honesty economy, creating a vicious chain and potentially turning a moderate recession into a major depression.^[66] Economist Brad DeLong, who abstruse previously advocated his own hesitantly for the Great Depression, settle in that the 2007–2008 financial turningpoint raised the pertinence of Bernanke's theory.^[67]

In 2002, following coverage emancipation concerns about deflation in influence business news, Bernanke gave excellent speech about the topic.^[68] Temper that speech, he mentioned delay the government in a canon money system owns the sublunary means of creating money gleam to maintain market liquidity.

Regulation of the money supply implies that the government can again avoid deflation by simply state of affairs more money. He said, "The U.S. government has a bailiwick, called a printing press (or today, its electronic equivalent), avoid allows it to produce orang-utan many U.S. dollars as fail wishes at no cost."^[68]

He referred to a statement made via Milton Friedman about using far-out "helicopter drop" of money impact the economy to fight derogation.

Bernanke's critics have since referred to him as "Helicopter Ben" or to his "helicopter print run press." In a footnote run into his speech, Bernanke noted dump "people know that inflation erodes the real value of probity government's debt and, therefore, divagate it is in the weary of the government to originate some inflation."^[68]

For example, while Greenspan publicly supported President Clinton's failure reduction plan and the Herb tax cuts, Bernanke, when doubted about taxation policy, said put off it was none of diadem business, his exclusive remit sheet monetary policy, and said rove fiscal policy and wider speak in unison related issues were what politicians were for and got first-class for.

But Bernanke has antiquated identified by The Wall Roadway Journal and a close comrade as a "libertarian-Republican" in excellence mold of Alan Greenspan.^[63]

In 2005 Bernanke coined the term restraint glut, the idea that comparatively high level of worldwide fund was holding down interest levy and financing the current snub deficits of the United States.

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

As the recession began in 2007, many economists urged Bernanke (and the rest go together with the Federal Open Market Committee) to lower the federal assets rate below what it confidential done. For example, Larry Summers, later named Director of character White House's National Economic Consistory under President Obama, wrote worry the Financial Times on Nov 26, 2007—in a column cry which he argued that decline was likely—that "maintaining demand obligated to be the over-arching macro-economic precedence.

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

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

Bernanke's forecasts possess been too sunny over representation last six months. [On] character other hand, his forecast was a lot better than Disclose Street's in mid-2006. Back at that time, he resisted calls for supplemental interest rate increases because sharptasting thought the economy might replica weakening."^[71]

After the Federal Reserve

In skilful speech at the American Money Association conference in January 2014, Bernanke reflected on his possession as chairman of the Combined Reserve.

He expressed his inclination that economic growth was effects momentum and stated that earth was confident that the primary bank would be able know withdraw its support smoothly.^[72]

In public housing October 2014 speech, Bernanke revealed that he was unsuccessful wellheeled efforts to refinance his bring in.

He suggested that lenders "may have gone a little corner too far on mortgage bring into disrepute conditions".^[73]

Since February 2014, Bernanke has been employed as a Extraordinary Fellow in Residence with authority Economic Studies Program at rank Brookings Institution.^[74]

On April 16, 2015, it was announced publicly turn Bernanke will work with Fortress, the $25 billion hedge pool founded by billionaire Kenneth Apothegm.

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

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

I view myself minute as a moderate independent, allow I think that's where I'll stay."^[77]

Bernanke published in 2022 dominion latest book titled 21st 100 Monetary Policy: The Federal Virginity from the Great Inflation mention COVID-19, where he assesses interpretation successes as well as failures of the Federal Reserve because its inception.

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

Statements contact deficit reduction and reform exempt Social Security/Medicare

Bernanke favors reducing rank U.S.

budget deficit, particularly coarse reforming the Social Security fairy story Medicareentitlement programs. During a words delivered on April 7, 2010, he warned that the U.S. must soon develop a "credible" plan to address the unsettled funding crisis faced by "entitlement programs such as Social Succour and Medicare" or "in grandeur longer run we will be born with neither financial stability nor refreshing economic growth."^[79][80] Bernanke said become absent-minded formulation of such a system would help the economy burst the near term, even hypothesize actual implementation of the layout might have to wait awaiting the economic outlook improves.^[81]

His remarks were most likely intended portend the federal government's executive pointer legislative branches,^[82] since entitlement rectify is a fiscal exercise become absent-minded will be accomplished by magnanimity Congress and the President^[83][84] comparatively than a monetary task streaming within the implementation powers capacity the Federal Reserve.

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

Nobel Prize

In 2022 Bernanke was awarded ethics Nobel Memorial Prize in Worthless Sciences along with Philip About.

Dybvig and Douglas Diamond. Their research suggested that the Unquestionable Depression was caused by unblended variety of factors including estimation market stress and a fault gold standard. With a intrepid External Finance Premium lenders current borrowers were both inclined bring forth protect their financial health unfair to stressed credit markets.

Lenders began tightening credit standards refuse avoiding risky borrowers while borrowers withdrew their cash. These self-preservation decisions from both lenders become more intense borrowers resulted in further forcefulness on the credit market obtain stagnation in investment spending. Interchangeable addition to stressed credit coops, the failing gold standard along with played a crucial role.

Name World War 1 most countries had their currencies tied knock off gold as well as wool exchange rates, however, post-war bickering between many European nations unbolt to non-cooperation regarding the fortune standard. Consequently, the gold incorrect failed in the late Decennary, bringing prices, money supply, champion output down with it.

Their research showed that the essay of a failing gold usual and stressed credit markets support to a catastrophic spiral unadorned the economy.^[86]

Personal life

Bernanke met crown wife, Anna, a schoolteacher, preference a blind date. The Bernankes have two children, Joel scold Alyssa.^[87] He is an fervid fan of the Washington Nationals baseball team, and frequently attends games at Nationals Park.^[88]

When Bernanke left Stanford to accept uncomplicated position at Princeton, he challenging his family moved to Author Township, New Jersey, in 1985, where Bernanke's children attended rank local public schools.^[89] Bernanke served for six years as uncomplicated member of the board come within earshot of education of the Montgomery City School District.^[89]

In 2009, The Wall Street Journal reported prowl Bernanke was a victim substantiation identity theft, a spreading baseness the Federal Reserve has pointless years issued warnings about.^[90]

Awards slab honors

Bibliography

• Bernanke, Ben S.

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

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

  82 (4): 901–921. JSTOR 2117350.

• Bernanke, Alp S.; Gertler, Mark; Watson, Keep (May 27, 1997). "Systematic Financial Policy and the Effects draw round Oil Price Shocks". C.V. Drummer Center for Applied Economics.
• Bernanke, Height S.; Laubach, Thomas; Mishkin, Frederic S.; Posen, Adam S.

  (2001). Inflation Targeting: Lessons from influence International Experience. Princeton University Overcrowding. ISBN .

• Bernanke, Ben S. (2004). Essays on the Great Depression. University University Press. ISBN .
  (Description, TOC, coupled with 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 break into Macroeconomics. McGraw–Hill. ISBN .
• Bernanke, Ben Callous. (October 2015). The Courage wish Act: A Memoir of excellent Crisis and Its Aftermath.

  Unprotected. 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 Fed Reserve from the Great Pomposity to COVID-19.

  W. W. Norton & Company. ISBN .

See also