Ben Shalom Bernanke is an American economist

Running head: Ben Bernanke

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Ben Bernanke

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Abstract
The American economy has undergone changes since time in memorial. There were times when recessions would make the economy unstable while peaks would make it better. Understanding the best method to use in stabilizing the American economy was a tough and challenging task (Bernanke, 2013). There was need to have an individual who clearly understood the best measures to apply in making it stable. After the retiring of Alan Greenspan, Ben Bernanke took over having met the qualifications of the FED chairperson. Ben Bernanke is a renowned economist all over the world. His contribution towards economic matters is remarkable. He has served as the Federal Reserve (FED) chairman during a period when there was economic instability in the United States. He served the nation when there was the financial challenge that was biggest in United States.
Bernanke’s success is associated with his ability to cope with difficult situations and maneuver them into opportunities for America. Bernanke is one person that had credentials and qualifications that made him suitable for the job. He was a leader from when he was in high school and continued to have the best qualities for a leader. He was able to change the challenging credit crises that took place between 2007 and 2009. It was during his period as the chairman of Federal Reserve that United State started having a stabilized economy and regaining from a deep recession. He was a role model whose legacy is still honored up to date as his achievements were beyond what people could imagine. His time as the chairperson of FED is a time to be remembered by almost every American as he turned tables round.
Life and background

Bernanke was born in a town In Georgia called Augusta. He then grew up in South Carolina a place called Dillon. He studied economics in Harvard University and received his bachelor’s degree in 1975. He later did a doctorate in economics which he completed in 1975 at Massachusetts Institute of Technology. After graduating with a doctorate in Economics, he started working as a professor assistant at Stanford University in the Graduate School of Business. His role as an assistant professor came to an end in 1983 when he became an associate professor in the field of economics (Lowenstein, 2015). In his role,1993, was involving as he had to do major visits to the professor in the department of economics at New York University. From 1989 to 1990, he used to visit the professor in charge of economics in Massachusetts Institute of Technology. Bernanke was dedicated in his role and ensured that he performed his activities in the best way possible. He had a privilege of working with senior people from the time when he graduated. His leadership skills were gained through his experience with such senior people in the different universities.
From the year 1985, Bernanke was a professor of economics at Princeton University from the year 1994 to the year 1996. He made an achievement when he became a member in the Board of Governors from the year 1996 to the year 2002. After undertaking his Ph.D he was appointed by the US president then George Bush to take after Alan Greenspan who retired in 2006 on 31st January. Alan Greenspan had served for a period of 19 years as the chairman of the Federal Reserve. Bernanke was appointed to serve a four year term from 2006 to 2010. On his appointment, he was also made a member of the Board of Directors for the Federal Reserve for a 14 years period that expires in 2020 (Wessel, 2009). His being a member of the board is not dependent on his being the chairperson of the Federal Reserve. Being the chairperson of Fed put Bernanke in a place where he was expected to make major and critical decisions about the economy of United States.
Bernanke’s economic decisions were to a large extent affected by his understanding on economic issues. When he was being introduced to the world by President George Bush, he said “Ben Bernanke is the right man to build on the record Alan Greenspan has established.” Bernanke had the best credentials that made him the most suitable person for the chairperson’s position. Bernanke’s academic credentials are impressive up to date. He studied economics up to Ph.D level. His high school performance was also amazing as he set a state record during his time (Irwin, 2013). He had a passion for economics and as a result ended up studying it up to the highest level. He clearly understood the different economic systems and the impacts that they had on United States. He could turn situations round and ensure that there was a solution being achieved from a problem that was in existence. Having attained such impressive credentials, it was possible for Bernanke to be appointed as the head of the Federal Reserve as he was fit for the position.

In 2009 when he was serving office as the chairman of the Federal State, it occurred to him that the depression in the economy was real and if no action was taken, it would eat away the entire American economy. In the same year, people criticized FED claiming that it was not able to handle the economic problem. Focusing on his origin, the small town in which he grew, he saw how depressed the economy really was. It was then that Bernanke’s philosophy came about during the Great Depression that had taken place in the 1930s. he was interested with the topic on the depression, reasons behind its occurrence, the effects it had to Americans and measures that could be used to bring it to an end. In the year 2002, Bernanke presented a speech titled “Deflation: make sure it doesn’t happen here.” He gave the speech to National Economists Club, Washington. According to Bernanke, deflation could be defined as a side effect that was caused by falling aggregate demand (Bernanke, 2013). It could also be caused by a drop in spending by customers that could then make producers cut down production cost in order to find more customers. Bernanke came into a conclusion that the effects of deflation were similar to those associate with a sharp decline in aggregate spending.
When Bernanke addressed the issue of curbing deflation, he applied the helicopter drop that was introduced by Milton Friedman. The aspect was applied on the amount of money circulating in the economy. He was criticized by many people who thought that his method could not work. However, as the chairperson of FED, he applied some of the tactics that he had outlined during the speech. For instance, Fed increased its amount of buying assets in order to increase the amount of spending where short term rates got to zero. He did this with the aim of ensuring that the recession that was in America did not turn into a depression. Bernanke being his first time and period as the chairman of Fed was slow in learning major threats that faced the US economy (Lowenstein, 2015). He did not understand well the dangers that were posed by the real estate market and the subprime mortgage that picked in the year 2007. During spring in 2007, Bernanke was able to put up with the problems that faced the housing market. However, the problem started escalating and he took action to ensure that the problem was brought to an end.
Conclusion

In conclusion, Bernanke is one of the well informed economists in America. His knowledge on economics kept him informed on the best action to take whenever things did not turn as they were expected. His leadership as the chairperson of Fed was fit for him as he was a suitable candidate. He was careful in taking risks and always implemented a solution before the problem could become magnified. His fight with the depression of the 30s made him famous all over the world as it led to the stabilization of the US economy (Wessel, 2009). Bernanke made achievements throughout his life since he was a student and after he was appointed the chairman of Fed. Fed is a sensitive body that deals with economic matters that affect the United States. There is need for critically and well analyzed decisions to be made. Bernanke had the ability to make such decisions and his leadership never failed. He was dedicated to making sure that the United States had a stable economy.
References

Bernanke, B. (2013). The Federal Reserve and the financial crisis.

Lowenstein, R. (2015). America’s bank: The epic struggle to create the Federal Reserve.

Wessel, D. (2009). In Fed we trust: Ben Bernanke’s war on the great panic. New York: Crown Business.

Irwin, N. (2013). The alchemists: Three central bankers and a world on fire.