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 manual for his successors. His success remains a mystery. Bernanke sought to solidify the policy integrity of the Federal Reserve by upholding the anti-inflationary actions and commitments of his predecessors, Volcker and Greenspan, while unveiling the mystique surrounding Greenspan at the Federal Reserve, thereby enhancing 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 monetary policy experience of the Greenspan era, analyzing his unique qualities and outstanding performance as a central banker, not only provides a perspective for understanding the Federal Reserve's operations but also serves as a necessary preparation for contemplating and predicting what kind of Federal Reserve Chair Bernanke would be, as well as the direction the Federal Reserve would take under his leadership.