Ben Bernanke, the former Federal Reserve chairman who is now a Distinguished Fellow in Residence here at Brookings, launched his blog today with an explanation of why interest rates – not just in the U.S. but around the world – are so low. (It isn’t all the Fed’s doing, he says.)
In subsequent posts this week, he’ll critique the “secular stagnation” hypothesis that Larry Summers has advanced as an explanation for recent and current condition of the U.S. economy. He’ll also advance an updated version of an alternative explanation, which Dr. Bernanke has dubbed “the global savings glut.”
If you can’t wait for his coming blog posts, you can watch a C-span video of Dr. Bernanke talking about all these issues at an event held Monday by the Center on Budget and Policy Priorities:
[On the ongoing trade negotiations] If we’re serious about resolving the core issues that the U.S. has with China, then this is going to be a way station that’s going to require a lot more continued focus by the administration for a number of months if not years.