In many spheres of human endeavor, from science to business to education to economic policy, good decisions depend on good measurement.
Ben BernankeRead
The role of liquidity in systemic events provides yet another reason why, in the future, a more system wide or macroprudential approach to regulation is needed.
Interpretation
What this quote means
Liquidity is vital during financial crises, highlighting the need for better regulatory approaches.
Ben Bernanke emphasizes the importance of liquidity in the context of systemic financial events, arguing that when crises occur, the availability of liquid assets can greatly influence stability. He suggests that to manage such events in the future effectively, a comprehensive regulatory framework that addresses the entire financial system, rather than just individual institutions or sectors, must be adopted.
Themes
LiquidityRegulationSystemic RiskFinancial StabilityMacroprudential
In practice
Example use cases
During a financial seminar to discuss new regulatory frameworks.
More from Ben Bernanke
All quotes βEducation - lifelong education for everyone - from toddlers to workers well advanced in their careers - is indeed an excellent investment for individuals and society as a whole.
Ben BernankeRead
Nobody likes to fail but failure is an essential part of life and of learning. If your uniform isn't dirty, you haven't been in the game.
Ben BernankeRead
Life is amazingly unpredictable; any 22-year-old who thinks they know where they will be in 10 years, much less in 30, is simply lacking imagination.
Ben BernankeRead
The benefit of appointing a hawkish central banker is the increased inflation-fighting credibility that such an appointment brings.
Ben BernankeRead
Economics is a highly sophisticated field of thought that is superb at explaining to policymakers precisely why the choices they made in the past were wrong. About the future, not so much.
Ben BernankeRead
Similar quotes
Long-term economic growth depends mainly on nonmonetary factors such as population growth and workforce participation, the skills and aptitudes of our workforce, the tools at their disposal, and the pace of technological advance. Fiscal and regulatory policies can have important effects on these factors.
Jerome PowellRead
No amount of debt restructuring, even debt forgiveness, will help the Greeks achieve real prosperity. What they need is not short-term relief but, rather, a long-term cure.
Edmund PhelpsRead
The modern corporation must manufacture not only goods but the desire for the goods it manufactures.
John Kenneth GalbraithRead
The trouble with the profit system has always been that it was highly unprofitable to most people.
E. B. WhiteRead
There never has been a time in our history when work was so abundant or when wages were as high, whether measured by the currency in which they are paid or by their power to supply the necessaries and comforts of life.
Benjamin HarrisonRead
Socialism failed because it couldn't tell the economic truth. Capitalism may fail because it couldn't tell the ecological truth.
Lester R. BrownRead