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Following Bernanke Means Using Precedent of Unprecedented Policy
Posted By admin On July 31, 2013 @ 10:07 am In Money Watch | Comments Disabled
Craig Torres, Jeff Black & Chris Anstey
July 31, 2013
The success of the next Federal Reserve chairman, be it Janet Yellen, Lawrence Summers or someone else, will depend less on their grounding in monetary policy orthodoxy than on their readiness to reach beyond it.
That flexibility defines the leaders of the world’s principal central banks: the Federal Reserve, the European Central Bank and the Bank of Japan. All three responded to economic shocks by casting off institutional dogma and broadening their missions.
At the Fed, Chairman Ben S. Bernanke engineered the most unconventional experiment in U.S. monetary-policy history using trillions of dollars in direct bond purchases to lower long-term interest rates and expanding the central bank’s role as lender of last resort. The ECB’s Mario Draghi pushed the central bank’s goals beyond narrow price stability, pledging unlimited support to countries that sign up for fiscal restructuring. BOJ Governor Haruhiko Kuroda set out to double Japan’s monetary base to end two decades of stagnation.
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URL to article: http://www.prisonplanet.com/following-bernanke-means-using-precedent-of-unprecedented-policy.html
URLs in this post:
 Bloomberg: http://www.bloomberg.com/news/2013-07-31/following-bernanke-means-using-precedent-of-unprecedented-policy.html
 Bernanke seen indicating no haste to tighten Fed policy: http://www.prisonplanet.com/bernanke-seen-indicating-no-haste-to-tighten-fed-policy.html
 ‘Bernanke-san’ Signals Policy Shift, Evoking Japan Comparison: http://www.prisonplanet.com/%e2%80%98bernanke-san%e2%80%99-signals-policy-shift-evoking-japan-comparison.html
 BOJ to pump $1.4 trillion into economy in unprecedented stimulus: http://www.prisonplanet.com/boj-to-pump-1-4-trillion-into-economy-in-unprecedented-stimulus.html
 Bernanke: Fed May Launch New Round of Stimulus: http://www.prisonplanet.com/bernanke-fed-may-launch-new-round-of-stimulus.html
 What Bernanke Really Said, Or How The Chairman Just Lost Control Over Policy Again: http://www.prisonplanet.com/what-bernanke-really-said-or-how-the-chairman-just-lost-control-over-policy-again.html
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