Tag Archives: Ben Bernanke reappointment

Articles Remembering Anna J. Schwartz

Two well-written articles remembering the life of Anna J. Schwartz include the June 21 New York Times article titled “Anna Schwartz, Economist Who Worked With Friedman, Dies at 96” as well as the June 22 Bloomberg BusinessWeek article titled “Anna Schwartz, Economist Milton Friedman’s Co-Author, Dies at 96.”

Although both article are well worth reading in their entirety, I would like to highlight some excerpts from the Bloomberg BusinessWeek article:

The first book that Schwartz wrote with Friedman, “A Monetary History of the United States, 1867-1960,” had “critical influence” on the outlook “of a generation of policy makers,” Bernanke said in 2003, when he was a Fed governor.

Published in 1963, the book advanced the idea that the Great Depression had been triggered by the central bank’s reduction in the U.S. money supply from 1928 until the early 1930s. That contradicted the prevailing view that it resulted from the 1929 stock-market crash.

also:

In a 2008 interview with Barron’s, Schwartz said the government needed to stop injecting liquidity into markets and reacting to the credit crisis with ad hoc programs.

“If I regret one thing, it’s that Milton Friedman isn’t alive to see what’s happening today,” she told the magazine. Referring to Bernanke, she said, “It’s like the only lesson the Federal Reserve took from the Great Depression was to flood the market with liquidity. Well, it isn’t working.”

Schwartz said in a July 2009 commentary for the New York Times that Bernanke, the architect of the central bank’s emergency programs, didn’t deserve reappointment as Fed chief.

“Mr. Bernanke seems to know only two amounts: zero and trillions,” she said, referring to his policy of holding the target interest rate near zero and the expansion of the Fed’s assets to $2 trillion in July 2009, more than double the level of early 2008. The U.S. Senate’s 70-30 vote to approve Bernanke for a second four-year term in 2010 marked the greatest opposition to a Fed chairman since the office became subject to Senate confirmation in 1978.

My comments: 

For those unaware, the aforementioned “A Monetary History of the United States, 1867-1960” seems to have had an almost monumental influence on multiple fronts.  While my thoughts on the book are complex – especially with regard to its description and interpretation of The Great Depression – the book appears to have had immense influence on both the putative causes of The Great Depression as well as a preeminent reference as how to avoid Depression conditions.  It strongly appears as if the book has had a strong influence on Ben Bernanke’s economic interpretations and actions.

I highlighted the quotes and thoughts from Anna Schwartz concerning the various intervention efforts from 2007, as well as her thoughts on Ben Bernanke’s actions, as I believe these thoughts deserve greater recognition.

_____

The Special Note summarizes my overall thoughts about our economic situation

SPX at 1331.50 as this post is written

“Bonus For Bernanke?” Commentary

I came across this commentary from Fareed Zakaria on CNN yesterday.  It is titled “Bonus For Bernanke?” :

http://www.cnn.com/video/#/video/us/2010/01/31/gps.bernanke.bonus.cnn?iref=allsearch

I mildly or strongly disagree with most of the assertions made by Fareed Zakaria in this piece.   The reason that I post it is that it contains a very good, concise representation of ideas from supporters of Ben Bernanke’s performance.

back to <home>

SPX at 1073.87 as this post is written


Thoughts on Ben Bernanke’s Tenure

With the announcement that Ben Bernanke will be nominated for a second term as Federal Reserve Chairman, I would like to make a few comments.

First, a brief review of some of the comments others have made with regard to Ben Bernanke’s tenure.   Here is a quote from Paul Krugman, as seen in the following August 10 Bloomberg story:

“I think Bernanke has done a really good job,” Krugman said. “He failed to see this coming and he was behind the curve in early phases. But he’s been really very good in the sense that it’s really very hard to see how anyone could have done more to stem this crisis.”

Krugman’s opinion seems to be largely in line with sentiments recently voiced by many other economists.

As well, other popular thoughts on Bernanke seem to be summarized well in this article:

http://online.wsj.com/article/SB125120274221856591.html

My thoughts on Bernanke haven’t changed.  I have periodically remarked on him; those remarks can be found in the “Ben Bernanke” category listed along the right side of the page.  Perhaps my June 10 post is the best summary of my thoughts:

https://www.economicgreenfield.com/2009/06/10/in-ben-we-trust/

As well, I will say that I feel that there have been many significant aspects of Ben Bernanke’s actions that have gone unnoticed, and/or have not been commented upon by anyone.

I will continue to comment on Ben Bernanke on an intermittent basis.

SPX at 1027.76 as this post is written