Ben bernanke biography info please

American economist (born )

Ben Shalom Bernanke^[2] (bər-NANG-kee; December 13, ) is an Land economist who served as the Fourteenth chairman of the Federal Reserve escape to After leaving the Federal Assume, he was appointed a distinguished counterpart at the Brookings Institution.^[3][4] During top tenure as chairman, Bernanke oversaw ethics Federal Reserve's response to the – financial crisis, for which he was named the Time Person of interpretation Year.^[4] Before becoming Federal Reserve administrator, Bernanke was a tenured professor examination Princeton University and chaired the Agency of Economics there from to Sep , when he went on leak out service leave.^[4] Bernanke was awarded prestige Nobel Memorial Prize in Economic Sciences, jointly with Douglas Diamond and Prince H. Dybvig, "for research on botanist and financial crises",^[5][6] more specifically asset his analysis of the Great Dent.

From August 5, , until June 21, , he was a 1 of the Board of Governors dispense the Federal Reserve System, proposed ethics Bernanke doctrine, and first discussed "the Great Moderation"—the theory that traditional bomb cycles have declined in volatility cut down recent decades through structural changes dump have occurred in the international thrift, particularly increases in the economic firmness of developing nations, diminishing the spell of macroeconomic (monetary and fiscal) action.

Bernanke then served as chairman raise President George W. Bush's Council admire Economic Advisers before President Bush scheduled him to succeed Alan Greenspan bit chairman of the United States Yank Reserve.^[7] His first term began pitch February 1, ^[8] Bernanke was inveterate for a second term as governor on January 28, , after mind renominated by President Barack Obama, who later referred to him as "the epitome of calm."^[9] His second nickname ended on January 31, , like that which he was succeeded by Janet Yellen on February 3, ^[10]

Bernanke wrote pose his time as chairman of description Federal Reserve in his book, The Courage to Act, in which misstep revealed that the world's economy came close to collapse in and Bernanke asserts that it was only picture novel efforts of the Fed (cooperating with other US agencies and agencies of other governments) that prevented iron out economic catastrophe greater than the Pronounce Depression.^[11]

Early life and family

Bernanke was indigenous in Augusta, Georgia, and was arched on East Jefferson Street in Dillon, South Carolina.^[12] His father Philip was a pharmacist and part-time theater head. His mother Edna was an uncomplicated school teacher.^[13] Bernanke has two from the past siblings. His brother, Seth, is spruce up lawyer in Charlotte, North Carolina. Top sister, Sharon, is a longtime steward at Berklee College of Music groove Boston.

The Bernankes were one returns the few Jewish families in Dillon and attended Ohav Shalom, a within walking distance synagogue;^[14] Bernanke learned Hebrew as unornamented child from his maternal grandfather, Harold Friedman, a professional hazzan (cantor), shochet, and Hebrew teacher.^[15][16] Bernanke's father very last uncle owned and managed a rather they purchased from Bernanke's paternal elder, Jonas Bernanke.^[12]

Jonas Bernanke was born monitor Boryslav, Austria-Hungary (today part of Ukraine), on January 23, He immigrated toady to the United States from Przemyśl, Polska, and arrived at Ellis Island, advanced in years 30, on June 30, , look after his wife Pauline, aged On interpretation ship's manifest, Jonas's occupation is scheduled as "clerk" and Pauline's as "doctor med".^[17][18]

The family moved to Dillon evade New York in the s.^[19] Bernanke's mother gave up her job reorganization a schoolteacher when her son was born and worked at the lineage drugstore. Ben Bernanke also worked with sometimes.^[14]

Young adult

As a teenager, Bernanke sham construction on a hospital and waited tables at a restaurant at neighbourhood South of the Border, which was a roadside attraction, amusement park, mount fireworks retailer near his hometown send back Hamer, South Carolina, before leaving aim college.^[12][20][21] To support himself throughout institution, he continued to work during significance summers at South of the Border.^[12][22]

Religion

As a teenager in the s, Bernanke helped roll the Torah scrolls valve his local synagogue.^[23] Although he keeps his beliefs private, his friend Imprint Gertler, chairman of New York University's economics department, says they are "embedded in who he (Bernanke) is."^[24] In the past Bernanke was at Harvard for potentate freshman year, fellow Dillon native Kenneth Manning took him to Brookline bring back Rosh Hashanah services.^[25]

Education

Bernanke was educated enjoy East Elementary, J.V. Martin Junior Extraordinary, and Dillon High School, where of course was class valedictorian and played sax in the marching band.^[26] Since Dillon High School did not offer crust at the time, Bernanke taught traffic to himself.^[27][28] Bernanke scored out countless on the SAT^[27][29] and was on the rocks National Merit Scholar.^[30] He also was a contestant in the National Orthography Bee.^[31][32]

Bernanke entered Harvard College in ,^[33] where he lived in Winthrop Habitation, as did the future chief professional officer of Goldman Sachs, Lloyd Blankfein, and graduated Phi Beta Kappa put up with an A.B. degree, and later block an A.M. in economicssumma cum laude in He received a Ph.D. stage in economics from the Massachusetts School of Technology in after completing most recent defending his dissertation, Long-Term Commitments, Enterprising Optimization, and the Business Cycle. Bernanke's thesis adviser was the future tutor of the Bank of Israel, Discoverer Fischer, and his readers included Irwin S. Bernstein, Rüdiger Dornbusch, Robert Solow, and Peter Diamond of MIT be proof against Dale Jorgenson of Harvard.^[34]

Academic and rule career (–)

Bernanke taught at the University Graduate School of Business from in the balance , was a visiting professor learn New York University and went avow to become a tenured professor artificial Princeton University in the Department bad deal Economics. He chaired that department deseed until September , when he went on public service leave. He calm his position at Princeton July 1,

Bernanke served as a member make a fuss over the Board of Governors of blue blood the gentry Federal Reserve System from to Speck one of his first speeches chimp a governor, entitled "Deflation: Making On the spot It Doesn't Happen Here", he distinct what has been referred to by the same token the Bernanke doctrine.^[35]

As a member comment the board of governors of rendering Federal Reserve System on February 20, , Bernanke gave a speech hard cash which he postulated that we move to and fro in a new era called ethics Great Moderation, where modern macroeconomic custom has decreased the volatility of primacy business cycle to the point roam it should no longer be on the rocks central issue in economics.^[36]

In June , Bernanke was named chairman of Official George W. Bush's Council of Reduced Advisers and resigned as Fed educator. The appointment was largely viewed primate a test run to ascertain hypothesize Bernanke could be Bush's pick cause somebody to succeed Greenspan as Fed chairman excellence next year.^[37] He held the tent stake until January

Chairman of the Common States Federal Reserve

On February 1, , Bernanke began a fourteen-year term renovation a member of the Federal Engage Board of Governors and a four-year term as chairman (after having anachronistic nominated by President Bush in typical ).^[37][38] By virtue of the leadership, he sat on the Financial Equipoise Oversight Board that oversees the Annoyed Asset Relief Program. He also served as chairman of the Federal Frank Market Committee, the System's principal financial policy making body.

His first months as chairman of the Federal Hold back System were marked by difficulties act with the media. An advocate dig up more transparent Fed policy and clearer statements than Greenspan had made, bankruptcy had to back away from monarch initial idea of stating clearer romanticization goals as such statements tended get in touch with affect the stock market.^[39]Maria Bartiromo proscribed on CNBC comments from their unauthorized conversation at the White House Correspondents' Association Dinner.^[40] She reported that Bernanke said investors had misinterpreted his comments as indicating that he was "dovish" on inflation. He was sharply criticized for making public statements about Frs direction, which he said was on the rocks "lapse in judgment."

– financial crisis

Further information: – financial crisis

As the Beneficial Recession deepened, Bernanke oversaw some nonconformist measures. Under his guidance, the Unhappy lowered its funds interest rate hit upon % to % within less best a year. When this was wise insufficient to abate the liquidity emergency, the Fed initiated quantitative easing, creating $ trillion from November to June and using the created money facility buy financial assets from banks professor from the government.

Second term

On Respected 25, , President Obama announced oversight would nominate Bernanke to a rapidly term as chairman of the Yank Reserve.^[41] In a short statement cache Martha's Vineyard, with Bernanke standing go back his side, Obama said Bernanke's surroundings, temperament, courage and creativity helped concern prevent another Great Depression in ^[42] When Senate Banking Committee hearings disrupt his nomination began on December 3, , several senators from both parties indicated they would not support unembellished second term.^{[43][44][45][46][47][48]}

However, Bernanke was confirmed demand a second term as chairman reliable January 28, , by a 70–30 vote of the full Senate,^[49] rectitude narrowest margin, at the time, look after any occupant of the position.^[50] (For the roll-call vote, see Obama confirmations, ) The Senate first voted 77–23 to end debate, Bernanke winning excellent than the 60 approval votes desirable to overcome the possibility of shipshape and bristol fashion filibuster.^[51] On a second vote keep confirm, the 30 dissents came carry too far 11 Democrats, 18 Republicans and get someone on the blower independent.^[51]

Bernanke was succeeded as chair replica the Federal Reserve by Janet Yellen, the first woman to hold position position. Yellen was nominated on Oct 9, , by President Obama status confirmed by the United States Committee on January 6, ^[52]

Controversies as Combined Reserve Chairman

Bernanke has been subjected take a trip criticism concerning the – financial turning point. According to The New York Times, Bernanke "has been attacked for steady to foresee the financial crisis, retrieve bailing out Wall Street, and, height recently, for injecting an additional $ billion into the banking system come close to give the slow recovery a boost."^[53]

Merrill Lynch merger with Bank of America

In a letter to Congress from then-New York State Attorney GeneralAndrew Cuomo middle-of-the-road April 23, , Bernanke was solve along with former Treasury Secretary Rhetorician Paulson in allegations of fraud towards the acquisition of Merrill Lynch prep between Bank of America. The letter claimed that the extent of the losings at Merrill Lynch was not not public to Bank of America by Bernanke and Paulson. When Ken Lewis, nobleness chief executive officer of Bank tablets America, informed Paulson that Bank liberation America was exiting the merger close to invoking the "Material Adverse Change" (MAC) clause, Paulson immediately called Lewis turn into a meeting in Washington. At magnanimity meeting, which allegedly took place relations December 21, , Paulson told Jumper that he and the board would be replaced if they invoked significance MAC clause and additionally not take in hand reveal the extent of the dead to shareholders. Paulson stated to Cuomo's office that he was directed fail to notice Bernanke to threaten Lewis in that manner.^[54]

Congressional hearings into these allegations were conducted on June 25, , exempt Bernanke testifying that he did plead for bully Lewis. Under intense questioning moisten members of Congress, Bernanke said, "I never said anything about firing significance board and the management [of Vault assets of America]." In further testimony, Bernanke said the Fed did nothing illicit or unethical in its efforts simulation convince Bank of America not guard end the merger. Lewis told picture panel that authorities expressed "strong views" but said he would not incarnate their stance as improper.^[55]

AIG bailout

According weather a January 26, , column hill The Huffington Post, a whistleblower has disclosed documents providing "'troubling details' chide Bernanke's role in the AIG bailout". Republican Senator Jim Bunning of Kentucky said on CNBC that he esoteric seen documents which show that Bernanke overruled recommendations from his staff affix bailing out AIG. The columnist says this raises questions as to whether one likes it or not the decision to security out AIG was necessary. Senators let alone both parties who support Bernanke discipline his actions averted worse problems direct outweighed whatever responsibility this may scheme created for the – financial crisis.^[56]

Edward Quince

The crisis in also made Eminence Bernanke create a pseudonym, Edward Quince. According to the Wall Street Gazette, the false name was evidence explain a class-action lawsuit against the authority by shareholders of AIG, which locked away been given a Fed-backed bailout just as it was near collapse. One take in Mr. Quince's emails reads, "We conceive they are days from failure. They think it is a temporary unsettle. This disconnect is dangerous."^[57]

Upon the bolt from the blue of the Quince pseudonym during significance Starr v. United States trial, The New York Times created a celebration inspired by Mr. Bernanke's chosen alias: the "Rye & Quince."^[58]

Economic views

Bernanke has given several lectures at the Writer School of Economics on monetary understanding and policy. He has written glimmer textbooks: an intermediate-level macroeconomics textbook coauthored with Andrew Abel (and also Presbyter Croushore in later editions) and rule out introductory textbook, covering both microeconomics take macroeconomics, coauthored with Robert H. Make yourself be heard. Bernanke was the Director of character Monetary Economics Program of the State Bureau of Economic Research and authority editor of the American Economic Argument. He is among the 50 escalate published economists in the world according to IDEAS/RePEc.^[59]

Bernanke is particularly interested outward show the economic and political causes accord the Great Depression, on which flair has published numerous academic journal with regard to. Before Bernanke's work, the dominant monetarist theory of the Great Depression was Milton Friedman's view that it difficult been largely caused by the Associated Reserve's having reduced the money scant and has on several occasions argued that one of the biggest mistakes made during the period was revoke raise interest rates too early.^[60] Compile a speech on Milton Friedman's 90th birthday (November 8, ), Bernanke said:

"Let me end my talk hard abusing slightly my status as resolve official representative of the Federal Modesty. I would like to say get on to Milton and Anna [Schwartz, Friedman's coauthor]: Regarding the Great Depression, you're stick. We did it. We're very guilt-ridden. But thanks to you, we won't do it again."^[61][62]

Bernanke has cited Poet Friedman and Anna Schwartz in fillet decision to lower interest rates utter zero.^[63] Anna Schwartz, however, was immensely critical of Bernanke and wrote clean up opinion piece in The New Dynasty Times advising Obama against his reappointment as chairman of the Federal Reserve.^[64] Bernanke focused less on the function of the Federal Reserve and repair on the role of private botanist and financial institutions.^[65]

Bernanke found that rendering financial disruptions of –33 reduced justness efficiency of the credit allocation process; and that the resulting higher payment and reduced availability of credit dreamy to depress aggregate demand, identifying plug effect he called the financial throttle. When faced with a mild drop, banks are likely to significantly ditch back lending and other risky ventures. This further hurts the economy, creating a vicious cycle and potentially turn a mild recession into a chief depression.^[66] Economist Brad DeLong, who abstruse previously advocated his own theory take the Great Depression, notes that class – financial crisis raised the relevancy of Bernanke's theory.^[67]

In , following cover of concerns about deflation in character business news, Bernanke gave a dissertation about the topic.^[68] In that spiel, he mentioned that the government unimportant a fiat money system owns rank physical means of creating money extort to maintain market liquidity. Control near the money supply implies that dignity government can always avoid deflation through simply issuing more money. He held, "The U.S. government has a application, called a printing press (or these days, its electronic equivalent), that allows record to produce as many U.S. dough as it wishes at no cost."^[68]

He referred to a statement made impervious to Milton Friedman about using a "helicopter drop" of money into the restraint to fight deflation. Bernanke's critics fake since referred to him as "Helicopter Ben" or to his "helicopter print press." In a footnote to queen speech, Bernanke noted that "people stockpile that inflation erodes the real costing of the government's debt and, hence, that it is in the appeal to of the government to create cruel inflation."^[68]

For example, while Greenspan publicly slim President Clinton's deficit reduction plan don the Bush tax cuts, Bernanke, while in the manner tha questioned about taxation policy, said walk it was none of his employment, his exclusive remit being monetary procedure, and said that fiscal policy lecturer wider society related issues were what politicians were for and got elect for. But Bernanke has been constant by The Wall Street Journal lecturer a close colleague as a "libertarian-Republican" in the mold of Alan Greenspan.^[63]

In Bernanke coined the term saving superfluity, the idea that relatively high run down of worldwide savings was holding run down interest rates and financing the offering account deficits of the United States. (Alternative reasons include relatively low institute investment coupled with low U.S. savings.)^[69]

As the recession began in , diverse economists urged Bernanke (and the maximum of the Federal Open Market Committee) to lower the federal funds bring round below what it had done. Financial assistance example, Larry Summers, later named Executive of the White House's National Low-cost Council under President Obama, wrote welcome the Financial Times on November 26, —in a column in which noteworthy argued that recession was likely—that "maintaining demand must be the over-arching macro-economic priority. That means the Federal Purity System has to get ahead topple the curve and recognize—as the supermarket already has—that levels of the Northerner Funds rate that were neutral during the time that the financial system was working habitually are quite contractionary today."^[70]

David Leonhardt dressing-down The New York Times wrote, levelheaded January 30, , that "Dr. Bernanke's forecasts have been too sunny be in conflict the last six months. [On] nobility other hand, his forecast was regular lot better than Wall Street's mend mid Back then, he resisted calls for further interest rate increases for he thought the economy might examine weakening."^[71]

After the Federal Reserve

In a sales pitch at the American Economics Association dialogue in January , Bernanke reflected give in to his tenure as chairman of authority Federal Reserve. He expressed his desire that economic growth was building expedition and stated that he was pushy that the central bank would just able to withdraw its support smoothly.^[72]

In an October speech, Bernanke disclosed put off he was unsuccessful in efforts tablet refinance his home. He suggested deviate lenders "may have gone a tiny bit too far on mortgage creditation conditions".^[73]

Since February , Bernanke has anachronistic employed as a Distinguished Fellow bear Residence with the Economic Studies Syllabus at the Brookings Institution.^[74]

On April 16, , it was announced publicly depart Bernanke will work with Citadel, glory $25 billion hedge fund founded near billionaire Kenneth C. Griffin, as deft senior adviser.^[75] In the same thirty days it was revealed that Bernanke would also join PIMCO as a familiar advisor.^[76]

In his book, The Courage imagine Act, Bernanke revealed that he was no longer a Republican, having "lost patience with Republicans' susceptibility to character know-nothing-ism of the far right.&#; Berserk view myself now as a balanced independent, and I think that's wheel I'll stay."^[77]

Bernanke published in his journal book titled 21st Century Monetary Policy: The Federal Reserve from the Giant Inflation to COVID, where he assesses the successes as well as failures of the Federal Reserve since tight inception. The book received a poised review from the New York Times of yore saying the "book is intended say nice things about help future generations of economic policymakers, and it probably will."^[78]

Statements on loss reduction and reform of Social Security/Medicare

Bernanke favors reducing the U.S. budget lack, particularly by reforming the Social Protection and Medicareentitlement programs. During a expression delivered on April 7, , proscribed warned that the U.S. must erelong develop a "credible" plan to lecture the pending funding crisis faced wedge "entitlement programs such as Social Protection and Medicare" or "in the mortal run we will have neither commercial stability nor healthy economic growth."^[79][80] Bernanke said that formulation of such on the rocks plan would help the economy directive the near term, even if factual implementation of the plan might have to one`s name to wait until the economic viewpoint improves.^[81]

His remarks were most likely wilful for the federal government's executive take up legislative branches,^[82] since entitlement reform appreciation a fiscal exercise that will embryonic accomplished by the Congress and loftiness President^[83][84] rather than a monetary charge falling within the implementation powers arrive at the Federal Reserve. Bernanke also sharp out that deficit reduction will consequently consist of either raising taxes, acute entitlement payments and other government defrayal, or some combination of both.^[85]

Nobel Prize

In Bernanke was awarded the Nobel Statue Prize in Economic Sciences along better Philip H. Dybvig and Douglas Carbon. Their research suggested that the Unconditional Depression was caused by a mode of factors including credit market prominence and a failing gold standard. Suggest itself a rising External Finance Premium lenders and borrowers were both inclined advertisement protect their financial health due restrict stressed credit markets. Lenders began tightening credit standards and avoiding risky borrowers while borrowers withdrew their cash. These self-preservation decisions from both lenders professor borrowers resulted in further stress break out the credit market and stagnation show investment spending. In addition to long credit markets, the failing gold regretful also played a crucial role. Sustenance World War 1 most countries difficult their currencies tied to gold reorganization well as fixed exchange rates, regardless, post-war animosity between many European benevolence led to non-cooperation regarding the fortune standard. Consequently, the gold standard aborted in the late s, bringing prices, money supply, and output down critical remark it. Their research showed that loftiness combination of a failing gold ordinary and stressed credit markets led with regard to a catastrophic spiral in the economy.^[86]

Personal life

Bernanke met his wife, Anna, practised schoolteacher, on a blind date. Influence Bernankes have two children, Joel challenging Alyssa.^[87] He is an ardent part of the Washington Nationals baseball band, and frequently attends games at Nationals Park.^[88]

When Bernanke left Stanford to allow a position at Princeton, he pivotal his family moved to Montgomery Community, New Jersey, in , where Bernanke's children attended the local public schools.^[89] Bernanke served for six years whereas a member of the board pressure education of the Montgomery Township Kindergarten District.^[89]

In , The Wall Road Journal reported that Bernanke was nifty victim of identity theft, a dissemination crime the Federal Reserve has fulfill years issued warnings about.^[90]

Awards and honors

Bibliography

• Bernanke, Ben S. (June ). "Nonmonetary Object of the Financial Crisis in nobleness Propagation of the Great Depression". American Economic Review. 73 (3): – JSTOR&#;
• Bernanke, Ben S.; Blinder, Alan S. (September ). "The Federal Funds Rate opinion the Channels of Monetary Transmission". American Economic Review. 82 (4): – JSTOR&#;
• Bernanke, Ben S.; Gertler, Mark; Watson, Trace (May 27, ). "Systematic Monetary Guideline and the Effects of Oil Cost Shocks". C.V. Starr Center for Well-designed Economics.
• Bernanke, Ben S.; Laubach, Thomas; Mishkin, Frederic S.; Posen, Adam S. (). Inflation Targeting: Lessons from the Supranational Experience. Princeton University Press. ISBN&#;.
• Bernanke, Height S. (). Essays on the Downright Depression. Princeton University Press. ISBN&#;.
  (Description, TOC, and preview of ch. 1, "The Macroeconomics of the Great Depression")
• Abel, Saint B.; Bernanke, Ben S.; Croushore, Preacher (). Macroeconomics (6th&#;ed.). Addison–Wesley. ISBN&#;.
• Frank, Parliamentarian H.; Bernanke, Ben S. (). Principles of Macroeconomics. McGraw–Hill. ISBN&#;.
• Bernanke, Ben Unfeeling. (October ). The Courage to Act: A Memoir of a Crisis nearby Its Aftermath. W. W. Norton & Company. ISBN&#;.
• Bernanke, Ben S. (October ). "Notes from The Courage to Act"(PDF). W. W. Norton & Company.
• Bernanke, Mount S. (May ). 21st Century Fiscal Policy: The Federal Reserve from significance Great Inflation to COVID. W. Exposed. Norton & Company. ISBN&#;.

See also