Because a person has to be either working or looking for work to be counted as part of the labor force, an increase in the number of people too discouraged to continue their search for work would reduce the unemployment rate, all else being equal - but not for a positive reason.

Clear communication is always important in central banking, but it can be especially important when economic conditions call for further policy stimulus but the policy rate is already at its effective lower bound.

Given the extent of the exposures of major banks around the world to A.I.G., and in light of the extreme fragility of the system, there was a significant risk that A.I.G.'s failure could have sparked a global banking panic.

In the future, financial firms of any type whose failure would pose a systemic risk must accept especially close regulatory scrutiny of their risk-taking.

The failure of Lehman Brothers demonstrated that liquidity provision by the Federal Reserve would not be sufficient to stop the crisis; substantial fiscal resources were necessary.

The lesson of history is that you do not get a sustained economic recovery as long as the financial system is in crisis.

I am particularly pleased to see that the Bendheim Center for Finance is thriving.

Smart financial planning - such as budgeting, saving for emergencies, and preparing for retirement - can help households enjoy better lives while weathering financial shocks. Financial education can play a key role in getting to these outcomes.

As an educator myself, I understand the profound effect that good teachers and a quality education have on the lives of our young people.

In many spheres of human endeavor, from science to business to education to economic policy, good decisions depend on good measurement.

The best solution to income inequality is providing a high-quality education for everybody. In our highly technological, globalized economy, people without education will not be able to improve their economic situation.

Income inequality is troubling because, among other things, it means that many people in our society don't have the opportunities to advance themselves.

History has demonstrated time and again the inherent resilience and recuperative powers of the American economy.

The Fed's independence is critical.

Economics has many substantive areas of knowledge where there is agreement, but also contains areas of controversy. That's inescapable.

Many foreclosed homes are neglected or abandoned, as legal proceedings or other factors delay their resale. Deteriorating or vacant properties can, in turn, directly affect the quality of life in a neighborhood, for example, by leading to increases in vandalism or crime.

The more guidance a central bank can provide the public about how policy is likely to evolve the greater the chance that market participants will make appropriate inferences.

High levels of homeownership have been shown to foster greater involvement in school and civic organizations, higher graduation rates, and greater neighborhood stability.

When the economic well-being of their nation demanded a strong and creative response, my colleagues at the Federal Reserve... mustered the moral courage to do what was necessary.

Economic engineering is about the design and analysis of frameworks for achieving specific economic objectives.