Federal Reserve Board of Governors Chairman Ben Bernanke Delivers Remarks at the Conference Co-Sponsored by the Center for Economic Policy Studies and the Bendheim Center for Finance
Political Transcript Wire › September 28, 2010
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Federal Reserve Board of Governors Chairman Ben Bernanke Delivers Remarks at the Conference Co-Sponsored by the Center for Economic Policy Studies and the Bendheim Center for Finance
FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS CHAIRMAN BEN BERNANKE DELIVERS REMARKS AT THE CONFERENCE CO-SPONSORED BY THE CENTER FOR ECONOMIC POLICY STUDIES AND THE BENDHEIM CENTER FOR FINANCE, AS PREPARED FOR DELIVERY, AS RELEASED BY THE FEDERAL RESERVE
SEPTEMBER 24, 2010SPEAKER: FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS CHAIRMAN BEN BERNANKE [*] BERNANKE: Thank you for giving me this opportunity to return to Princeton. It is good to be able to catch up with old friends and colleagues and to see both the changes and the continuities on campus. I am particularly pleased to see that the Bendheim Center for Finance is thriving. When my colleagues and I founded the center a decade ago, we intended it to be a place where students would learn about not only the technicalities of modern financial theory and practice but also about the broader economic context of financial activities. Recent events have made clear that understanding the role of financial markets and institutions in the economy, and of the effects of economic developments on finance, is more important than ever.The financial crisis that began more than three years ago has indeed proved to be among the most difficult challenges for economic policymakers since the Great Depression. The policy response to this challenge has included important successes, most notably the concerted international effort to stabilize the global financial system after the crisis reached its worst point in the fall of 2008. For its part, the Federal Reserve worked closely with other policymakers, both domestically and internationally, to help develop the collective response to the crisis, and it played a key role in that response by providing backstop liquidity to a range of financial institutions as needed to stem the panic. The Fed also developed special lending facilities that helped to restore normal functioning to critical financial markets, including the commercial paper market and the market for asset-backed securities; led the bank stress tests in the spring of 2009 that significantly improved confidence in the U.S. banking system; and, in the area of monet...See the full content of this document
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