Federal Reserve Chairman Ben S. Bernanke said that expansionary monetary policies in the world’s largest countries are “mutually constructive.”
Monetary stimulus from global central banks “is providing additional support for other countries through stronger financial markets, more exports,” Bernanke said in response to audience questions at a conference in Stone Mountain, Georgia.
Bernanke compared today’s policies to countries leaving the gold standard during the Great Depression and reflating their economies.
“The fact that every country was doing the same thing was mutually reinforcing,” he said of the 1930s. “There’s an analogy between this 1930s experience and what we’re seeing in the world today.”
Steve Matthews in Atlanta at email@example.com