Bernanke Era: Federal Reserve Monetary Policy Outlook After Greenspan

Author: Wang Yu
Publisher:
Publish Date: 2006-05-01
Features: This book provides an analysis and outlook on the monetary policy of the Federal Reserve under the leadership of Greenspan and Bernanke, attempting to explain and characterize the "Greenspan Enigma" and the "Bernanke Rationale." During his tenure as Chair of the Federal Reserve, Greenspan demonstrated flexibility and forward-thinking, injecting wisdom into U.S. monetary policy practice, but he left no reference guide for his successors. His success remains a mystery. Bernanke sought to solidify the policy credibility of the Federal Reserve by upholding the anti-inflation stance and commitments of his predecessors, Volcker and Greenspan, while lifting the veil of mystery surrounding Greenspan at the Federal Reserve, thereby increasing the transparency and credibility of monetary policy. From Greenspan to Bernanke, it is a microcosm of the transition of U.S. monetary policy from art to science, as well as a concentrated reflection of the shift in monetary policy decision-making from reliance on individual flexibility to collective wisdom, from secrecy to transparency, and from controlling financial markets to maintaining two-way communication within financial markets. This book attempts to analyze the Federal Reserve's monetary policy by introducing and examining the views and policy proposals of Greenspan and Bernanke on major issues, thereby better understanding and grasping the transformations the Federal Reserve has undergone, is undergoing, and will undergo. Reviewing and summarizing the experiences of Greenspan's era in monetary policy, analyzing his unique qualities and outstanding performance as a central banker, not only provides a perspective for understanding the workings of the Federal Reserve but also serves as a necessary preparation for thinking about and predicting what kind of Federal Reserve Chair Bernanke would be, as well as the direction the Federal Reserve would take under his leadership.