Bernanke Era - Federal Reserve Monetary Policy Outlook After Greenspan

Author: Wang Yu
Publisher:
Publish Date: 2006-05-01
Features: 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 already, is currently, and will soon 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 operation of the Federal Reserve but also prepares us to think about and predict what kind of Federal Reserve Chair Bernanke would be, as well as the direction the Federal Reserve would take under his leadership. This book is an analysis and outlook on the monetary policy of the Federal Reserve under the leadership of Greenspan and Bernanke, attempting to interpret and portray the "Greenspan enigma" and the "Bernanke rationale." During his tenure as Federal Reserve Chair, Greenspan demonstrated flexibility and forward-thinking, infusing wisdom into U.S. monetary policy practice, but he did not leave a reference guide for his successors. His success remains a mystery. Bernanke sought to consolidate the policy credentials of his predecessors—Volcker and Greenspan—by implementing inflation targeting, thereby establishing the policy quality of the Federal Reserve. At the same time, he unveiled the veil of mystery surrounding Greenspan at the Federal Reserve, increasing the transparency and credibility of monetary policy. From Greenspan to Bernanke is a microcosm of the transition of the Federal Reserve's monetary policy from art to science, as well as a concentrated reflection of monetary policy decision-making shifting from relying on individual flexibility to collective wisdom, from secrecy to transparency, and from controlling financial markets to maintaining two-way communication in 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 already, is currently, and will soon 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 operation of the Federal Reserve but also prepares us to think about and predict what kind of Federal Reserve Chair Bernanke would be, as well as the direction the Federal Reserve would take under his leadership.