Although we work through financial markets, our goal is to help Main Street, not Wall Street.
Janet YellenRead
People stop buying things, and that is how you turn a slowdown into a recession.
Interpretation
What this quote means
Consumer spending is crucial for economic health, and a decline in purchases can signal a recession.
Janet Yellen's quote highlights the interconnectedness of consumer behavior and the overall economy. When people reduce their spending, businesses experience decreased sales, which can lead to layoffs, reduced income, and ultimately a recession. This illustrates the critical role consumer confidence and spending play in maintaining economic stability.
Themes
EconomyRecessionConsumer BehaviorSpendingEconomic Health
In practice
Example use cases
In a presentation about economic trends, one might say, 'As Yellen noted, people stop buying things, leading to recessions.'
More from Janet Yellen
All quotes βWe need to keep in mind the well-established fact that the full effects of monetary policy are felt only after long lags. This means that policy makers cannot wait until they have achieved their objectives to begin adjusting policy.
Janet YellenRead
A clear lesson of history is that a 'sine qua non' for sustained economic recovery following a financial crisis is a thoroughgoing repair of the financial system.
Janet YellenRead
Transparency concerning the Federal Reserve's conduct of monetary policy is desirable because better public understanding enhances the effectiveness of policy. More important, however, is that transparent communications reflect the Federal Reserve's commitment to accountability within our democratic system of government.
Janet YellenRead
For decades, the pace of technological change in manufacturing has outstripped that in the economy as a whole. And, so, firms - manufacturing firms - have found it easier to continue producing by - with - reducing their workforces.
Janet YellenRead
Inequality has risen to the point that it seems to me worthwhile for the U.S. to seriously consider taking the risk of making our economy more rewarding for more of the people.
Janet YellenRead
Similar quotes
Everyone may have some advise for the RBI. Some may advise, 'Cut your lending rates and raise the deposit rate.' How will a bank function? We take a medium term view. The bank has an 80-year-old history. I don't want to destroy it for a few decisions.
Raghuram RajanRead
What Wall Street and credit card companies are doing is really not much different from what gangsters and loan sharks do who make predatory loans. While the bankers wear three-piece suits and don't break the knee caps of those who can't pay back, they still are destroying people's lives.
Bernie SandersRead
All social rules and all relations between individuals are eroded by a cash economy, avarice drags Pluto himself out of the bowels of the earth.
Karl MarxRead
It is rather a problem of how to secure the best use of resources known to any of the members of society, for ends whose relative importance only those individuals know.
Friedrich August Von HayekRead
If government manages to establish paper tickets or bank credit as money, as equivalent to gold grams or ounces, then the government, as dominant money-supplier, becomes free to create money costlessly and at will. As a result, this 'inflation' of the money supply destroys the value of the dollar or pound, drives up prices, cripples economic calculation, and hobbles and seriously damages the workings of the market economy.
Murray RothbardRead
There can be economy only where there is efficiency.
Benjamin DisraeliRead