I want to make sure you keep your eyes on the ball, that is, the two basic missions of a central bank. The first is maintaining macroeconomic stability: maintaining stable growth and keeping inflation low and stable. The principal policy tool for maintaining macroeconomic stability is monetary policy. In normal times, the Fed and other central banks use open market operations-purchases and sales of securities in markets-to move interest rates up or down, and in doing so try to create a more stable macroeconomic environment. The second part of a central bank's mission is maintaining financial stability. Central banks are focused on trying to ensure that the financial system functions properly, and in particular, they want to prevent, if possible, and if not, to mitigate the effects of a financial crisis or a financial panic.
Ben BernankeRelated topics
ball bank basic central fed inflation interest keeping low maintaining market move open panic possible principal second stability stable sure times trying try use eyesRelated quotes
Data management housekeeping is not the only problem to plague oversimplified approaches to high speed computation. The physical problems which are of practical interest tend to have rather significant complications. Examples of these complications are as follows: boundaries are likely to be irregular; interiors are likely to be inhomogeneous; computations required may be dependent on the states of the variables at each point; propagation rates of different physical effects may be quite different; the rate of convergence, or convergence at all, may be strongly dependent on sweeping through the array along different axes on succeeding passes; etc. The effect of each of these complications is very severe on any computer organization based on geometrically related processors in a paralleled processing system.
Gene Amdahl
In recent weeks, we have taken bold steps to prevent a severe disruption of the American economy, which would have a devastating effect on other economies around the world. We've promoted stability in the markets by preventing the disorderly failure of major companies. The Federal Reserve has injected urgently needed liquidity into the system. And last week, I announced a decisive action by the federal government to address the root cause of much of the instability in our financial markets, by purchasing illiquid assets that are weighing down balance sheets and restricting the flow of credit. I can assure you that my administration and our Congress are working together to quickly pass legislation approving this strategy, and I'm confident we will act in the urgent time frame required.
George W. Bush
We had to dispel the notion that the way to economic success lies through a sort of fiscal levitation. That was the abiding post-war delusion-that governments could spend and borrow their way to prosperity, and fine-tune the performance of the economy through something known pretentiously as demand management...It used to be an establishment nostrum that you need a budget deficit to get economic growth. That was the belief which lay behind the notorious letter by 364 economists in March 1981. We have given the lie to that, decisively. There can no longer be any argument about it. Everyone-or almost everyone-now accepts that the proper role of macro-economic policy is to keep downward pressure on inflation and to maintain a stable framework in which the private sector can expand.
Nigel Lawson
I'm torn by two perspectives in this regard. One is that the Palestinians have no interest whatsoever in establishing peace, and that the pathway to peace is almost unthinkable to accomplish. [...] And I look at the Palestinians not wanting to see peace anyway, for political purposes, committed to the destruction and elimination of Israel, and these thorny issues, and I say, "There's just no way." And so what you do is you say, "You move things along the best way you can." You hope for some degree of stability, but you recognize that this is going to remain an unsolved problem. We live with that in China and Taiwan. All right, we have a potentially volatile situation but we sort of live with it, and we kick the ball down the field and hope that ultimately, somehow, something will happen and resolve it.
Mitt Romney
Globalization creates interlocking fragility, while reducing volatility and giving the appearance of stability. In other words it creates devastating Black Swans. We have never lived before under the threat of a global collapse. Financial Institutions have been merging into a smaller number of very large banks. Almost all banks are interrelated. So the financial ecology is swelling into gigantic, incestuous, bureaucratic banks - when one fails, they all fall. The increased concentration among banks seems to have the effect of making financial crisis less likely, but when they happen they are more global in scale and hit us very hard. We have moved from a diversified ecology of small banks, with varied lending policies, to a more homogeneous framework of firms that all resemble one another. True, we now have fewer failures, but when they occur... I shiver at the thought.
Nassim Nicholas Taleb