Deflation can be particularly dangerous when a financial system is shaky, with household and corporate balance sheets in poor shape and banks undercapitalized and heavily burdened with bad loans. Ben Bernanke badbalancebank Change image and share on social
Given the extent of the exposures of major banks around the world to A.I.G., and in light of the extreme fragility of the system, there was a significant risk that A.I.G.'s failure could have sparked a global banking panic. Ben Bernanke bankexposureextent share on social
Among other objectives, liquidity guidelines must take into account the risks that inadequate liquidity planning by major financial firms pose for the broader financial system, and they must ensure that these firms do not become excessively reliant on liquidity support from the central bank. Ben Bernanke accountbankbroad share on social
The economist John Maynard Keynes said that in the long run, we are all dead. If he were around today he might say that, in the long run, we are all on Social Security and Medicare. Ben Bernanke deadeconomistjohn Change image and share on social
After a long period in which the desired direction for inflation was always downward, the industrialized world's central banks must today try to avoid major changes in the inflation rate in either direction. Ben Bernanke avoidbankcentral share on social
Indeed, in general, healthy investment returns cannot be sustained in a weak economy, and of course it is difficult to save for retirement or other goals without the income from a job. Ben Bernanke difficulteconomygeneral Change image and share on social
To be sure, the provision of liquidity alone can by no means solve the problems of credit risk and credit losses; but it can reduce liquidity premiums, help restore the confidence of investors, and thus promote stability. Ben Bernanke confidencecreditinvestor share on social
In any given month, a large number of workers are being hired or are leaving their current jobs, illustrating the dynamism of the U.S. labor market. Ben Bernanke currentdynamismhire Change image and share on social
Stronger regulation and supervision aimed at problems with underwriting practices and lenders' risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates. Ben Bernanke aimapproachbubble share on social
Rents should begin to decelerate as the demand for owner-occupied housing stabilizes and the supply of rental units increases. Ben Bernanke begindeceleratedemand Change image and share on social