No comparison between current crisis and 1930s: Bernanke
US Federal Reserve Chairman Ben Bernanke has said the current economic crisis faced by the US cannot be compared with the Great Depression of the 1930s but admitted that the economy of the country still remains under "considerable stress".
By PTI |
WASHINGTON: US Federal Reserve Chairman Ben Bernanke has said the current economic crisis faced by the US cannot be compared with the Great Depression of the 1930s but admitted that the economy of the country still remains under "considerable stress".
The Fed Chief, who is also a scholar of the Great Depression, on Tuesday said that the existing economic turmoil has "no comparison" with the 1930s. According to him, the worst-ever economic turmoil then resulted in a depression for many years. He has also written books on the Great Depression.
Meanwhile, yesterday speaking in Texas on the Federal Reserve Policies during the financial crisis, Bernanke said that the nation's economy is under stress despite various initiatives by the policymakers.
"Despite the efforts of the Federal Reserve and other policymakers, the US economy remains under considerable stress. Economic activity was weakening even before the intensification of the financial crisis ...," the Fed Chief pointed out.
Warning that the likely duration of the turmoil would be difficult to judge, Bernanke noted that economic conditions would remain weak for a longer period even if financial markets continue to make progress.
"... But even if the functioning of financial markets continues to improve, economic conditions will probably remain weak for a time.
In particular, household spending likely will continue to be depressed by the declines to date in household wealth, accumulating job losses, weak consumer confidence, and a lack of credit availability," he added.
The Fed Chief, who is also a scholar of the Great Depression, on Tuesday said that the existing economic turmoil has "no comparison" with the 1930s. According to him, the worst-ever economic turmoil then resulted in a depression for many years. He has also written books on the Great Depression.
Meanwhile, yesterday speaking in Texas on the Federal Reserve Policies during the financial crisis, Bernanke said that the nation's economy is under stress despite various initiatives by the policymakers.
"Despite the efforts of the Federal Reserve and other policymakers, the US economy remains under considerable stress. Economic activity was weakening even before the intensification of the financial crisis ...," the Fed Chief pointed out.
Warning that the likely duration of the turmoil would be difficult to judge, Bernanke noted that economic conditions would remain weak for a longer period even if financial markets continue to make progress.
"... But even if the functioning of financial markets continues to improve, economic conditions will probably remain weak for a time.
ADVERTISEMENT
In particular, household spending likely will continue to be depressed by the declines to date in household wealth, accumulating job losses, weak consumer confidence, and a lack of credit availability," he added.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
