Fed Dual Mandate Shows Bernanke’s Model Working Better in Crisis
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Federal Reserve Chairman Ben S. Bernanke’s focus on full employment and price stability is being validated as the U.S. expansion gains speed and his counterparts in Europe emulate his approach.
Bernanke pursued new stimulus last year to create jobs, defying critics who said his record accommodation would spark inflation. Now, with U.S. growth accelerating and the euro area on the brink of a second recession in three years, Bank of England Governor Mervyn King and European Central Bank President Mario Draghi are showing they also are willing to spur their economies while inflation exceeds their goals.