Ben Bernanke


Bush names Bernanke to succeed Greenspan

"Ben Bernanke, chief economic adviser to President George Bush, was named this week to succeed Alan Greenspan as chairman of the Federal Reserve in Washington...

"Mr. Bernanke is unlikely to take the Fed in a sharply different direction to Mr. Greenspan. He said that, if confirmed, "my first priority will be to maintain continuity with the policies and policy strategies established during the Greenspan years." A welcome difference noted by economists was that he speaks in plainer English than the outgoing chairman, who is notorious for his obhuscations" (David Teather. "Bush names Bernanke to succeed Greenspan." Guardian Weekly, Oct. 14, 2005: 33).

"... the GOP may regret the choice if Bernanke sticks to his convictions. As Fed governor he advocated that the Fed publish an explicit target for price inflation. An inflation target would handcuff the Federal Reserve to the bond market's very conservative expectations, and that could produce slower economic growth than necessary. This inflexibility is not good for the folks nor for political incumbents. Even Greenspan thought the idea was too conservative" ("In Fact..." The Nation, Nov. 14, 2005: 8).

Colby Glass, MLIS