On the recordDecember 2, 2009
I think there is an appropriate division of labor: Congress and the administration, fiscal policy; Federal Reserve, monetary policy.
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congress.govI think there is an appropriate division of labor: Congress and the administration, fiscal policy; Federal Reserve, monetary policy.
Bernanke emphasizes the separation of fiscal and monetary policy responsibilities.
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It would be very concerning for financial markets and, I think, for the general public if the United States didn't pay its bills.
As I have said many times, I think that fiscal policy is focusing a bit too much on the short run, and not enough on the long run.
The crisis was an enormous waste of resources, and unsafe practices by large financial institutions pose a risk not just to themselves but to the rest of society.
Finding a way to deal with that issue I think is the most challenging part but has the biggest payoff.