Ben Bernanke, chairman of the Federal Reserve, explains that the recession has forced policymakers to implement accommodative monetary policies. Such policies will likely be necessary for a while, he writes, but as the economy recovers, the Fed will need to exit its stimulus efforts and tighten monetary policy. The Federal Open Market Committee must consider inflationary issues, Bernanke says. "We will calibrate the timing and pace of any future tightening, together with the mix of tools to best foster our dual objectives of maximum employment and price stability."

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