the legislation, together with stronger regulatory standards for bank capital and liquidity now being developed, will place our financial system on a sounder foundation and minimize the risk of a repetition of the devastating events of the past 3 years.
Bernanke discusses the importance of legislation and regulatory standards for financial stability.
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The sizes of deficits and debt matter, of course, but not all tax and spending programs are created equal with respect to their effects on the economy.
We want to deploy it in ways that have the greatest benefit for the least cost.
It is possible that some of these regulations have some impact on the cost of credit, but there has been a lot of analysis that suggests that the benefits in terms of reducing the risk of a financial crisis are extremely large.
As I have mentioned, it is a cost of these policies and it is one that we take very seriously.
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