Yesterday (18 October 2011), at the Federal Reserve Bank of Boston 56th Economic Conference, Chairman Bernanke gave a speech called “The Effects of the Great Recession on Central Bank Doctrine and Practice“.
I want to highlight a few pieces that a found particularly entertaining.
The Federal Reserve is accountable to the Congress for two objectives–maximum employment and price stability, on an equal footing.
While those stated objectives are accurate, accountability is questionable. With unemployment reaching 10% and a 100-year record of depreciating the dollar by over 95%. If they are accountable, Congress isn’t holding them to it.
From the Associated Press:
During a speech Tuesday in Boston, Bernanke said the steps the Fed took during the crisis proved to be successful.
Really? Successful? By what measure? Didn’t you just say that the economy was “close to faltering”?
A Reuters article from 4 October states that:
Earlier this month, Bernanke told members of Congress that the economy “is close to faltering.” He assured lawmakers that the central bank was prepared to take further steps to try to bolster economic growth.
Also from the Associated Press:
Minutes of the Sept. 20-21 meeting reflected the policymakers’ uncertainty over why the economy is struggling to grow and create jobs more than two years after the recession has ended.
So which one is it? Did your steps prove to be successful? Is the economy close to faltering? Do you just not know what’s going on? Does it even matter if you aren’t accountable for the things you do?
Tags: Banking, Politics, Quotes