Ben Bernanke facts for kids
Quick facts for kids
Ben Bernanke
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Bernanke in 2008
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| 14th Chairman of the Federal Reserve | |
| In office February 1, 2006 – January 31, 2014 |
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| President | George W. Bush Barack Obama |
| Deputy | Roger Ferguson Donald Kohn Janet Yellen |
| Preceded by | Alan Greenspan |
| Succeeded by | Janet Yellen |
| Member of the Federal Reserve Board of Governors | |
| In office February 1, 2006 – January 31, 2014 |
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| President | George W. Bush Barack Obama |
| Preceded by | Alan Greenspan |
| Succeeded by | Stanley Fischer |
| In office July 31, 2002 – June 21, 2005 |
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| President | George W. Bush |
| Preceded by | Edward W. Kelley Jr. |
| Succeeded by | Kevin Warsh |
| 23rd Chairman of the Council of Economic Advisers | |
| In office June 21, 2005 – January 31, 2006 |
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| President | George W. Bush |
| Preceded by | Harvey Rosen |
| Succeeded by | Edward Lazear |
| Personal details | |
| Born |
Ben Shalom Bernanke
December 13, 1953 Augusta, Georgia, U.S. |
| Political party | Independent (2015 or earlier–present) |
| Other political affiliations |
Republican (before 2015 or earlier) |
| Spouse | Anna Friedmann |
| Children | 2 |
| Education | Harvard University (BA, MA) Massachusetts Institute of Technology (PhD) |
| Awards | Nobel Memorial Prize in Economic Sciences (2022) |
| Signature |  |
| Scientific career | |
| Thesis | Long Term Commitments, Dynamic Optimization, and the Business Cycle (1979) |
| Doctoral advisor | Stanley Fischer |
Ben Shalom Bernanke (born December 13, 1953) is an American economist. An economist studies how money and resources are used. He is best known for serving as the 14th chairman of the Federal Reserve from 2006 to 2014. The Federal Reserve is like the central bank of the United States. It helps manage the country's money supply and keeps the economy stable.
During his time as chairman, Bernanke led the Federal Reserve's efforts to deal with the 2007–2008 financial crisis. This was a very difficult time for the world economy. For his work, he was named Time Person of the Year in 2009.
Before leading the Federal Reserve, Bernanke was a professor at Princeton University. He also chaired the Economics Department there. In 2022, he won the Nobel Memorial Prize in Economic Sciences. He shared this award with two other economists for their research on banks and financial crises. His work especially looked at the causes of the Great Depression.
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Early Life & Family History
Ben Bernanke was born in Augusta, Georgia. He grew up in Dillon, South Carolina. His father, Philip, was a pharmacist and also managed a theater part-time. His mother, Edna, was an elementary school teacher.
The Bernanke family was one of the few Jewish families in Dillon. They attended a local synagogue. Ben learned Hebrew from his grandfather, Harold Friedman. His grandfather was a professional cantor, which is someone who leads prayers in a synagogue.
Ben's father and uncle owned a drugstore. They bought it from Ben's grandfather, Jonas Bernanke. Jonas was born in what is now Ukraine in 1891. He came to the United States in 1921.
When Ben was born, his mother stopped teaching school. She then worked at the family drugstore. Ben also helped out at the store sometimes when he was young.
Teenage Years & Early Jobs
As a teenager, Ben Bernanke worked different jobs. He helped build a hospital. He also waited tables at a restaurant called South of the Border. This was a roadside attraction near his hometown.
He continued to work there during the summers while he was in college. These jobs helped him pay for his education.
Education & Learning
Bernanke went to East Elementary, J.V. Martin Junior High, and Dillon High School. He was the top student in his class. He also played the saxophone in the school's marching band.
His high school did not offer calculus, which is an advanced type of math. So, Bernanke taught it to himself. He scored very high on his SATs. He was also a contestant in the 1965 National Spelling Bee.
In 1971, Bernanke started at Harvard College. He earned his bachelor's and master's degrees in economics from Harvard in 1975. He then went on to get his PhD in economics from the Massachusetts Institute of Technology (MIT) in 1979. His PhD paper was about how long-term decisions affect the economy.
Career in Economics & Government
After finishing his education, Bernanke taught at the Stanford Graduate School of Business. This was from 1979 to 1985. He then became a professor at Princeton University. He led the economics department there from 1996 to 2002.
From 2002 to 2005, Bernanke was a member of the Board of Governors of the Federal Reserve System. During this time, he talked about something called the "Great Moderation." This idea suggested that big ups and downs in the economy were becoming less common. He believed this was due to changes in the global economy.
In June 2005, President George W. Bush chose Bernanke to lead his Council of Economic Advisers. This group gives economic advice to the President. This job was seen as a way to see if Bernanke would be a good choice for the top job at the Federal Reserve.
Leading the Federal Reserve
On February 1, 2006, Ben Bernanke became the chairman of the United States Federal Reserve. President Bush had nominated him for this important role. As chairman, he also led the Federal Open Market Committee. This committee makes key decisions about the country's money supply.
At first, Bernanke had some trouble talking to the media. He wanted the Federal Reserve to be more open about its plans. But some of his early comments caused confusion in the stock market. He later said this was a "lapse in judgment."
The 2007–2008 Financial Crisis
During the 2007–2008 financial crisis, Bernanke faced huge challenges. This period is also known as the Great Recession. Under his leadership, the Federal Reserve took unusual steps to help the economy.
The Fed quickly lowered its main interest rate to almost zero. This made it cheaper for banks to borrow money. When this wasn't enough, the Fed started something called "quantitative easing." This meant the Fed created new money. It used this money to buy financial assets from banks and the government. This helped to keep money flowing in the economy.
Second Term as Chairman
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On August 25, 2009, President Barack Obama announced he would nominate Bernanke for a second term. President Obama praised Bernanke's calm nature and courage. He said Bernanke helped prevent another Great Depression.
Some senators were unsure about confirming him for a second term. However, the Senate voted 70-30 to confirm him on January 28, 2010. This was a close vote for such a high-ranking position.
Bernanke's second term ended on January 31, 2014. He was then replaced by Janet Yellen. She became the first woman to hold the position of Federal Reserve chair.
Economic Ideas & Views
Ben Bernanke has written several textbooks on economics. He also edited a major economics journal. He is known for his deep interest in the Great Depression. This was a severe worldwide economic downturn in the 1930s.
Before Bernanke's work, many economists believed the Federal Reserve caused the Great Depression. They thought the Fed reduced the money supply too much. Bernanke agreed that the Fed made mistakes. He once famously said, "Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again."
Bernanke's research focused more on how problems in private banks and financial institutions made the Depression worse. He showed that when banks get into trouble, they lend less money. This can make a small economic problem much bigger. He called this the "financial accelerator."
In 2002, Bernanke gave a speech about deflation. Deflation is when prices for goods and services go down. He said that a government with its own currency can always avoid deflation. It can do this by simply printing more money. He joked about using a "helicopter drop" of money to fight deflation. Because of this, some people started calling him "Helicopter Ben."
Bernanke believes that politicians should handle tax and spending policies. He sees his job as focusing only on monetary policy. This means managing the money supply and interest rates.
Life After the Federal Reserve
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After leaving the Federal Reserve in 2014, Bernanke reflected on his time as chairman. He hoped that the economy was getting stronger. He also felt confident that the central bank could slowly reduce its support.
Since February 2014, Bernanke has worked at the Brookings Institution. This is a research organization in Washington, D.C. He also became a senior adviser for two large financial companies, Citadel and PIMCO.
In his 2015 book, The Courage to Act, Bernanke shared that he no longer considers himself a Republican. He wrote that he is now a "moderate independent."
In 2022, Bernanke published another book. It's called 21st Century Monetary Policy: The Federal Reserve from the Great Inflation to COVID-19. In this book, he looks at the successes and failures of the Federal Reserve.
Nobel Prize in Economics
In 2022, Ben Bernanke won the Nobel Memorial Prize in Economic Sciences. He shared the award with Philip H. Dybvig and Douglas Diamond. Their research helped us understand why financial crises happen.
They showed that problems in credit markets can make economic downturns much worse. When banks and borrowers get worried, they become more careful with money. Lenders might stop lending, and people might pull their money out of banks. This creates a bad cycle that hurts the economy.
Their work also looked at the role of the gold standard in the Great Depression. The gold standard tied a country's money to gold. They found that its failure in the late 1920s, combined with stressed credit markets, led to a huge economic spiral.
Personal Life
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Bernanke met his wife, Anna, on a blind date. Anna is a schoolteacher. They have two children, Joel and Alyssa. Ben is a big fan of the Washington Nationals baseball team. He often goes to their games.
When Bernanke moved to Princeton, his family moved to Montgomery Township, New Jersey. His children went to the local public schools there. Bernanke also served on the school board for six years.
Awards & Honors
- Fellow of the Econometric Society (1997)
- Fellow of the American Academy of Arts and Sciences (2001)
- Order of the Palmetto (2006)
- Member of the American Philosophical Society (2006)
- Distinguished Leadership in Government Award, Columbia Business School (2008)
- In 2009, a highway exit in Dillon County, South Carolina, was named the Ben Bernanke Interchange.
- In 2009, he was named the Time magazine person of the year.
- In 2020, he received the BBVA Foundation Frontiers of Knowledge Award.
- Member of the National Academy of Sciences (2021)
- Awarded the 2022 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
See also
In Spanish: Ben Bernanke para niños
- Causes of the Great Depression
- Great Contraction
- List of Jewish Nobel laureates
