U.S. Economy Assignment Help | Dissertation Help Mr. Ben Bernanke is the Chairman of the Board of Governors of the Federal Reserve System. He was selected at this post for a second time on February 10, 2010. In addition, Dr. Bernanke also performs the role of Chairman of the Federal Open Market Committee, the System’s principal monetary policymaking body (Board of Governors of the Federal Reserve System, 2012).

This assignment help paper discusses the analysis of Mr. Ben Bernanke’s policies in terms of their effectiveness for US economy. It also discusses if the Senate make the right decision by confirming Bernanke’s reappointment for a second term.

 

Analysis of Mr. Ben Bernanke’s policies Mr. Ben Bernanke made several policies that are beneficial for the US economy. In addition, it also used a wide range of tools in order to pump money into a staggering economy. In this concern, he has opened the Fed’s discount window to a new range of financial institutions, cut interest rate to near zero, helped conceive and pushed for the $700 billion federal bailout of the financial system as well as tripled the Fed’s balance sheet, to about $2.3 trillion (Bernanke, 2012). In the year 2010, the Fed adopted a new monetary policy that is known as quantitative easing. This policy is also good for US economy. It is because this policy was adopted by Bernanke at the time, when economy was so dire that banks are reluctant to lend or borrow whatever the cost. This situation was happened in the wake of the credit crisis that upended Wall Street in the fall of 2008. Quantitative easing is a kind of unorthodox methods of pumping money into an economy and working to lower the long-term interest rates that central bankers do not usually control (Quantitative Easing, 2012). The most common approach under this method is purchase of debt at large scale. The Fed purchase government or other bonds and then makes that money available for banks to borrow and thus, expanding the money around the economy. Under this policy, The Fed recently announced a program of open-ended bond purchase in order to improve labor market conditions and barring a sustained and unexpected spike in inflation. In the initial step of this program, the central bank will buy $40 billion in mortgage-backed securities each month (Reuters, 2012). This policy is helpful to boost US spending and growth as well as to strengthen the US economic recovery. Following are some ways that suggest Mr. Ben Bernanke’s policies are good for the U.S. economy:

• Improve labor market conditions.
• Increased spending and growth in the US economy.
• Enhance flow of money in the economy.
• Put a control on growing interest rates

For instance, recently the US economy has shown recent signs of growth, as it expanded at an annualized rate of 2% for the third quarter of the year 2012 (BBC, 2012). The Fed’s policy of quantitative easing helped the economy to prevent a second great depression and to recover the US economy. In the year 2012, the Fed announced third round of easing that is known as QE3. Moreover, it also pledged to continue to this program as compared to create another program with a fixed endpoint until the economy was significantly improved. Thus, it can be stated that Mr. Ben Bernanke’s policies are helpful for US economy.

 

Comment on Senate’s decision on reappointment of Bernanke’s The Senate made the right decision by confirming Bernanke’s reappointment for a second term. It is because the experience of Bernanke’s as an economist and working with Federal Reserve System will be effective in order to strengthen the US economy. In this concern, it is identified that Dr. Bernanke was Chairman of the President’s Council of Economic Advisers, from June 2005 to January 2006 (Board of Governors of the Federal Reserve System, 2012). At the same time, he has served the Federal Reserve System in several roles such as the member of the board of governors, visiting scholar and as a member of the Academic Advisory Panel. In addition, he has published many articles on different economic issues such as macroeconomics and monetary policy. All these show that he has deep understanding related to different economic concept including inflation, unemployment, GDP, recession, etc. Moreover, knowledge of all these concepts develops necessary competencies in Dr. Bernanke, through which he can handle several economic issues faced by US economy. In addition to this, he also ability to take bold action and think out of box and it is the reason due to which the Senate makes the decision to reappoint Bernanke for a second term (Bernanke, 2012).

 

Conclusion From the above discussion of Mr. Ben Bernanke’s policies case study assignment help, it can be stated that Mr. Ben Bernanke’s policies such as opened the Fed’s discount window to a new range of financial institutions, cut interest rate to near zero, etc. was beneficial for the US economy. Furthermore, he has several competencies, through which it can generates flow of money within a depressed economy. It is the reason that the Senate makes the right decision by confirming Bernanke’s reappointment for a second term. It is because he has the capabilities by which, he can take the economy in right direction through its innovative economic ideas.

 

References BBC (2012). Fed hints at new bond-buying scheme. Retrieved from http://www.bbc.co.uk/news/business-20334488 Bernanke, B. (2012). Retrieved from http://topics.nytims.com/top/reference/timestopics/people/b/ben_s_bernanke/index.html Board of Governors of the Federal Reserve System (2012). Retrieved from http://www.federalreserve.gov/aboutthefed/bios/board/bernanke.htmn Quantitative Easing (2012). Retrieved from http://topics.nytimes.com/top/reference/timestopics/subjects/q/quantitative_easing/index.html?inline=nyt-classifier Reuters (2012). Bernanke Says Fed Policy Could Benefit Global Economy. Retrieved from http://www.nytimes.com/2012/10/15/business/bernanke-defends-fed-from-claims-it-is-being-selfish.html?ref=bensbernanke&_r=0#h[]    How to get assignment help and dissertation help with assignmenthelpexperts.com At assignmenthelpexperts.com you get the ideal and unique task assignment help from our UK,US and Australian experts. Group of assignment help specialists have bunches of experience of composing task with exceptionally sensible expense. Additionally we also give guarantee that you task paper will be impeccable and will be free from any kind of mistakes..  Understudies who need business help can touch with our 24X7live emotionally supportive network or can send email at info@www.assignmenthelpexperts.com