If I am confirmed, I am confident that my colleagues on the Federal Open Market Committee and I will maintain the focus on long-term price stability as monetary policy's greatest contribution to general economic prosperity and maximum employment.— Ben Bernanke
Unforgettable Price Stability quotations
Achieving price stability is not only important in itself, it is also central to attaining the Federal Reserve's other mandate objectives of maximum sustainable employment and moderate long-term interest rates.
"But that's the price we have to pay for stability.
You've got to choose between happiness and what people used to call high art. We've sacrificed the high art.
Our mission, as set forth by the Congress is a critical one: to preserve price stability, to foster maximum sustainable growth in output and employment, and to promote a stable and efficient financial system that serves all Americans well and fairly.
We will work to bring an element of stability to the price of oil.
I expect an energy bill to increase and diversify supply and stabilize energy prices - not drive up energy costs in one part of the country to subsidize energy in another region.
Among the many important provisions in the energy bill are the creation of an estimated half million new jobs, increased oil production, blackout protection, controlling fertilizer costs by stabilizing natural gas prices and enacting new efficiency benchmarks.
So, I think even in Saudi Arabia there is movement.
And we have to remember that over the years they've stabilized the oil price and that is tremendously important for the economies of the world. I think we have no choice but to work with the government of Saudi Arabia.
Japan's experience suggests the importance of assessing the sustainability of price stability over a fairly long period, which many central banks have emphasized in recent years.
The idea that when people see prices falling they will stop buying those cheaper goods or cheaper food does not make much sense. And aiming for 2 percent inflation every year means that after a decade prices are more than 25 percent higher and the price level doubles every generation. That is not price stability, yet they call it price stability. I just do not understand central banks wanting a little inflation.
With sales stabilizing, we should go back to positive price growth early next year.
We’ve never had a decline in house prices on a nationwide basis.
So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don’t think it’s going to drive the economy too far from its full employment path, though.
If climate change issues are not adequately addressed—if we keep running those nice energy subsidies, if the price on carbon is not adequately set, if policymakers don’t have it on their radar screens—then financial stability in the medium and long-term is clearly at stake.
We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability.