Ben Bernanke: Ipse Dixit

by Mario Rizzo

Today’s Wall Street Journal has an opinion piece by Fed Chairman Ben Bernanke. He assures us that the Fed has the tools and the willingness to restrain inflation when that is appropriate (not now). He recognizes it is all about timing. But everything is under control:

“Overall, the Federal Reserve has many effective tools to tighten monetary policy when the economic outlook requires us to do so. As my colleagues and I have stated, however, economic conditions are not likely to warrant tighter monetary policy for an extended period. We will calibrate the timing and pace of any future tightening, together with the mix of tools to best foster our dual objectives of maximum employment and price stability.”

How good are Bernanke’s abilities as a forecaster? Thanks to YouTube we have evidence (HT: Bob Murphy).

7 thoughts on “Ben Bernanke: Ipse Dixit

  1. Your correct about Bernanke, but considering the likely alternative Larry Summers, I like Bernanke just fine!

  2. I really like this video.

    There was a similar discussion about sustainable credit growth in Eastern Europe. Until 2007 many economists argued that credit growth in Eastern Europe (although on two digits) was a sign of financial deepening instead of overheating. Therefore nothing was done to smooth it down, even though there were a lot of warnings starting in 2004. Now that the bubble burst there is no doubt anymore. There was a credit boom.

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