Now that most people blame Greenspan for the prolonged expansionary monetary policy, Ben Bernanke may also just be blamed for all the turmoils in the financial market in these days and some time I even wonder whether there will be a new Fed Chair soon.
Years later after this crisis and may be much sooner, however, most of us may have to realize the central banking innovations made by Ben since later last year, which Hamilton has paid great attention to since then, may have saved the whole world economy from the edge of abyss. Hamilton's recent work on this issue has been picked up by bond traders as a must read.
So, 5 years from now, Greenspan may be deemed as a man who has extended his luck into an excess thus made a big mess afterward, but Bernanke may be remembered as a man who bravely led a battle against his and our crisis with all his intellectual power possible. Bernanke matched the destruction of unchecked financial innovations with at least similar amount of central banking innovations in a very short period of time. I hope the result of this battle is his triumph.
Summer Camp at Hoover - A weeklong program for undergrads.
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