Bernanke essays

His mother Edna was an elementary school teacher. His brother, Seth, is a lawyer in Charlotte, North Carolina. The Bernankes were one of the few Jewish families in Dillon and attended Ohav Shalom, a local synagogue; [8] Bernanke learned Hebrew as a child from his maternal grandfather, Harold Friedman, a professional hazzan service leadershochetand Hebrew teacher. Ben Bernanke also worked there sometimes.

Bernanke essays

Balancing Passion with Practicality

I should state out front that I do not believe that complex systems subject to stochastic shocks can be modeled. Ben Bernanke and his collaborators at least do not attempt the economic equivalent of the climate doommongers' general circulation models, that foolishly Bernanke essays they can model an entire complex system.

Each essay is an attempt to slice out an organ of economic activity and conduct a pathological examination of it. Some essays are more persuasive than others. Eichengreen proposed that the deflation was made infectious across borders by the gold standard. Bernanke shows that leaving the gold standard allowed guiders of monetary policy to inflate currency, which, in turn, helped debtors to get back on their feet, put themselves back to work and hire others.

But it was, obviously, far from a complete solution to the problem of persistent falling output. At the time, Bernanke says, going Bernanke essays gold was criticized as a "beggar-thy-neighbor" policy, but we now see that inflation was a good thing.

Loanable Funds model

There is nothing new to the idea. Bernanke does not mention them. What Bernanke and the macroeconometricians have done is quantify the Brain Trusters' insights. The quantification is only moderately impressive.

I studied economics through economic history, and when you read those papers you get a lively sense of how inadequate economic data are. Bernanke's elaborate equations are based on shaky inputs. Furthermore, as many footnotes reveal, leaving out a parameter often has no "substantial" effect on the results.

This is a frequent feature of climate modeling, too. It is often used to suggest that the results are "robust" to the parameters that do affect results, but it probably is more generally to be interpreted as a strong signal that the theory has substantial defects.

When you get the same outputs no matter what the inputs are, time to rethink the theory. To their credit, Bernanke and his students do rethink the theory. When it comes to labor, though, not enough.

Bernanke essays

While the view that gold is bad for trade seems solidly established, Bernanke has it acting almost in a vacuum. Of course, Bernanke's interest is in why the Depression persisted, not in how it began. The second set of essays is much less impressive, in which Bernanke attempts to learn why wages were "sticky," that is, why real wages went up for those who had any income at all.

In theory, wages should have gone down until workers got so little that they would be worth hiring again. Bernanke shows, persuasively, that real wages did stay high during the Depression, even setting aside the fact that money bought more as currency deflated.

He spends much more time on the supply side: Yes, it's the same problem today. As Bernanke notes, large corporations entered the Depression with enough liquid assets that they were not directly affected by banking crises.

High taxes, contrary to what Tea Partiers, Republicans and other economic illiterates will tell you, have nothing to do with it.

Man­i­festo - Steve Keen's Debtwatch

Then, as now, employers would not hire -- they would not even take free labor -- if they didn't have a potential supply of buyers.

Here is where Bernanke goes off the rails. It is clear why manufacturers didn't see big opportunities, then and now: The consuming class had been wiped out. For American farmers -- who along with those closely connected to them in a business sense made up about two-fifths of the population -- the Great Depression began in and lasted until Tens of millions of them simply dropped out of the money economy.

Milton Friedman and Anna Schwartz can't analyze them, because they didn't use money.

Wolfgang Streeck: How Will Capitalism End?. New Left Review 87, May-June

An excellent description of how a large family, with substantial assets over a thousand acres of debt-free fat farmland in eastern Iowalived for two decades without spending money is available in "Little Heathens" by Mildred Kalish.

One of Bernanke's eight industries on which he runs his regressions was leather and tanning. But you don't need equations to understand why leather firms didn't hire more, even as leather workers earned less.MONETARY POLICY IN A NEW ERA Ben S. Bernanke Brookings Institution October 2, Prepared for conference on Rethinking .

Here, Ben Bernanke has gathered together his essays on why the Great Depression was so devastating. This broad view shows us that while the Great Depression was an unparalleled disaster, some economies pulled up faster than others, and some made an opportunity out of it.4/5(4). EDGAR DEGAS WAS BORN OF ARISTOCRATIC BANKERS in Paris on July 19, Until his death in , Degas cherished an attachment to his grandfather, Hilaire De Gas, a well-to-do banker of the French aristocracy.

Developing his artistic talent when 18 years old as a copyist at the Louvre in Paris.

Bernanke essays

Remarks by Governor Ben S. Bernanke At the H. Parker Willis Lecture in Economic Policy, Washington and Lee University, Lexington, Virginia March 2, Essays on the Great Depression Ben S. Bernanke Princeton, N.J.: Princeton University Press, , pp. Economists’ fascination with the description and interpretation of the.

Ranadivé’s basketball team played in the National Junior Basketball seventh-and-eighth-grade division, representing Redwood City. The girls practiced at Paye’s Place, a gym in nearby San Carlos.

Bernanke’s ‘Essays’