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A Hawkish Signal Bernanke Didn't Send
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Central bank governors Ben Bernanke, Mario Draghi, Stanley Fischer, Mervyn King and the MIT Economics Department
01/28/2008
Ben Bernanke and Mervyn King once shared an office as professors at MIT. Stanley Fischer was Draghi's and Bernanke's PhD. advisor. The MIT economics department fostered a view in the 1990's in which central banks played an active role when markets failed and the economy stumbled. This followed a period of post-Keynes views at the universities of Rochester, Minnesota, and Chicago, that markets operated on rational expectations and needed minimal intervention by central banks.
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