Ben Bernanke. Photo: Bloomberg
Ben Bernanke. Photo: Bloomberg

Bernanke blogs

What former US Federal Reserve chairman Ben Bernanke has written in his initial posts on his new blog is puzzling

Ben Bernanke has begun blogging.

What Bernanke has written in his initial posts is puzzling. He has defended his policies as chairman of the US Federal Reserve. The entire argument is based on the fact that the economy needed low interest rates. Bernanke has said the state of the economy, rather than the central bank, determines the real interest rates.

There is no mention of the emerging markets in this narrative, especially the fact that low interest rates in the developed countries led to asset bubbles, appreciating exchange rates and financial instability in other parts of the world. But then, Bernanke has suddenly made emerging markets the central theme when it comes to explaining why interest rates were pushed down in the developed countries. He repeats his old argument that excess savings in the emerging world created a global savings glut.

It is a very self-serving narrative.

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