Newswise — “Federal Reserve Board Chairman Bernanke's much-anticipated speech at Jackson Hole today proved mildly reassuring in one respect and galvanizing in another.
“It was reassuring because of the Chairman's reiteration that the Fed remains aware of continuing sluggishness in the macro-economy, and that the central bank has yet more tools in the toolkit should further action be necessary. The speech was galvanizing in highlighting the limits of monetary-financial policy in fully reversing a slump. Comprehensive recovery awaits monetary-financial policy's presently poor relation: fiscal policy.
“Until we get serious about real stimulus spending — particularly on the nation's crumbling public infrastructure — monetary-financial policy will, at best, get us only to limp speed. The chairman's speech ought to galvanize us into doing what we now have to do to get back to a full run.”--Robert L. Hockett, an expert in financial regulations and professor of Law at Cornell University
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