In many spheres of human endeavor, from science to business to education to economic policy, good decisions depend on good measurement.
Ben BernankeRead
If bankers become overly conservative in response to past lending mistakes - or if examiners force such behavior - it will hurt bankers' own long-term interests and the economy in general.
Interpretation
What this quote means
Caution in banking can lead to negative consequences for both banks and the economy.
In this quote, Ben Bernanke highlights the potential dangers of an overly cautious approach from bankers and examiners in the wake of previous lending mistakes. He argues that while it is important to learn from past errors, excessive conservatism can stifle growth and harm the long-term interests of banks and the wider economy, suggesting a need for balance in financial regulations.
Themes
BankingEconomyConservatismLendingRegulation
In practice
Example use cases
This quote can be used in a lecture on economic policy to emphasize the need for balanced regulation.
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