Showing posts with label Ben S. Bernanke. Show all posts
Showing posts with label Ben S. Bernanke. Show all posts

Friday, 13 May 2016

Ending "too big to fail": What's the right approach? (Ben S. Bernanke, Brookings)



In a recent speech at the Hutchins Center at the Brookings Institution, Neel Kashkari, the new president of the Federal Reserve Bank of Minneapolis, argued that we need new strategies to tackle the problem of “too big to fail” (TBTF) financial institutions. On Monday, I’ll be on a panel at the Minneapolis Fed on the issue. This post previews my comments. In short, it seems to me that a lot of progress has been made (and more is in train) toward reducing the risks that large, complex financial institutions pose for the financial system and the economy. To say that “nothing has been done” is simply not correct. That said, because it’s really important to get this right, thoughtful debate on the issue is necessary and welcome

http://www.brookings.edu/blogs/ben-bernanke/posts/2016/05/13-too-big-to-fail

Thursday, 24 March 2016

What tools does the Fed have left? Part 2: Targeting longer-term interest rates (Ben S. Bernanke, Brookings)

Although the U.S. economy appears to be on a positive trajectory, history suggests that at some time in the next few years we may again face a slowdown, with a weakening job market and possibly declining inflation. Given that the historically low level of short-term interest rates is likely to limit the scope for conventional rate cuts, how would the Federal Reserve respond?

http://www.brookings.edu/blogs/ben-bernanke/posts/2016/03/24-rate-pegs

Thursday, 10 March 2016

China’s trilemma—and a possible solution (Ben S. Bernanke, Brookings)

chinese currency

China’s central banker, Zhou Xiaochuan of the People’s Bank of China (PBOC), and other top Chinese officials recently launched a communications offensive to persuade markets and foreign policymakers that no significant devaluation of the Chinese currency is planned.[1] Is the no-devaluation strategy a good one for China? If it is, what does China need to do to make its exchange-rate commitments credible?

http://www.brookings.edu/blogs/ben-bernanke/posts/2016/03/09-china-trilemma

Wednesday, 9 March 2016

China’s transparency challenges (Ben S. Bernanke, Peter Olson, Brookings)

china central bank

At the recent G20 gathering in Shanghai, three Chinese leaders—Premier Li Keqiang, People’s Bank of China Governor Zhou Xiaochuan, and Finance Minister Lou Jiwei—reassured attendees that the Chinese government had the monetary and fiscal tools as well as the know-how to guide the economy through its current challenges. The success of the communications offensive, which seems to have calmed investor concerns for the moment, stands in strong contrast to the communications missteps that exacerbated adverse market reactions to the Chinese government’s stock market and currency interventions over the past year.

Friday, 19 February 2016

The relationship between stocks and oil prices (Ben S. Bernanke, Brookings)

The past decade has been a roller coaster for oil prices, one that market participants have probably not much enjoyed riding (Figure 1). The period includes much volatility and two sharp crashes. One crash, in 2008, was associated with the financial crisis and the Great Recession. The second may still be going on: Oil prices have fallen from over $100 per barrel in mid-2014 to around $30 per barrel recently.

http://www.brookings.edu/blogs/ben-bernanke/posts/2016/02/19-stocks-and-oil-prices

Tuesday, 16 February 2016

The Fed’s interest payments to banks (Ben S. Bernanke, Donald Kohn, Brookings)

At Janet Yellen’s recent hearing before the House Financial Services Committee, a few representatives expressed concern that the Federal Reserve is making interest payments to banks. Specifically, the Fed uses authority granted by Congress in 2008 to pay interest on the reserves that banks hold with it. Total payments to banks last year were about $7 billion. Why is the Fed paying such sums to banks? Are they “giveaways” to the financial sector, as some have implied? We’ll argue in this post that the interest payments the Fed is making are well-justified. In particular, they are essential to prudent monetary policy in current circumstances and do not unduly subsidize banks.

http://www.brookings.edu/blogs/ben-bernanke/posts/2016/02/16-fed-interest-payments-banks