Bernanke’s Jackson Hole message summarized in 8 points

Genevieve Signoret

Update (3 September 2012): Title now says “message” instead of “speech”.

What follows is my summary of Bernanke’s message from Jackson Hole:

1. Quantitative easing has worked.
2. It also poses risks. We’re alert to them. But none has materialized. If any should start to, we’ll be ready.
3. Unemployment levels are stuck high and won’t fall unless the economy grows faster than it does when capital and labor are fully employed.
4. This is not happening, nor will it under current policy.
5. You may say, but Ben, housing activity is recovering. I say, I know, but activity levels remain depressed.
6. You may say, but Ben, surely things will improve. I ask, can’t you feel those headwinds?
7. And let’s not forget: massive unemployment means massive suffering; prolonged unemployment means slower future growth.
8. (Unstated conclusion: we must take action.)

Actualización (3 septiembre 2012): Vea esta entrada en español.