Sunday, December 8, 2013

Bernanke on financial crises


This is short book of four lectures given at George Washington University. There are no real surprises here as we come to the end of the Bernanke period. He provides a good historical context of Fed behavior and what was tried to solve the Financial Crisis. Summed up, the Bernanke doctrine from these lectures is very simple, the US economy was not going to turn into a second Great Depression on his watch. As an economist with a strong study of the Great Depression, he had a clear view that the Depression was worse because the Fed did not prove enough liquidity. 

When in doubt, provide cheap liquidity - as much as possibly needed. 

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