Bernanke’s stimulus endorsement
The Fed chairman backs another round of spending
The massive U.S. cash injection into the banking sector “shows signs of working,” said Irwin Kellner in MarketWatch, and now “a good dose of fiscal stimulus,” as advocated by Federal Reserve Chairman Ben Bernanke Monday, is just what the doctor ordered to ease us through our recession. If Bernanke, a Great Depression expert, supports targeted measures such as expanded jobless benefits and aid to states, we should listen. We’ll deal with the “red ink” later.
Looks like “we are all Keynesians now,” said Andrew Neil in The Daily Beast. But as policy-makers revive the dusty theories of John Maynard Keynes—more federal spending to boost the economy—it’s worth recalling “the lessons of history”: limited “Keynesian pump-priming, of the right sort, won’t do any harm—but it probably won’t do much good either.”
Bernanke is harming his credibility and the Fed’s independence by "giving a political green light” to the Democrats’ stimulus plans, said The Wall Street Journal in an editorial. Republicans are “resisting” new “‘stimulus’ spending,” and Bernanke’s backing amounts to an endorsement of Barack Obama. It seems he wants another term as Fed chairman.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Trump uses tariffs to upend Brazil's domestic politics
IN THE SPOTLIGHT By slapping a 50% tariff on Brazil for its criminal investigation into Bolsonaro, the Trump administration is brazenly putting its fingers on the scales of a key foreign election
-
3 questions to ask when deciding whether to repair or replace your broken appliance
the explainer There may be merit to fixing what you already have, but sometimes buying new is even more cost-effective
-
'Trump's authoritarian manipulation of language'
Instant Opinion Vienna has become a 'convenient target for populists' | Opinion, comment and editorials of the day