Bernanke AEA Speech Last Hurrah for Central Bankers, Says Summers

The transcript discusses the limitations of monetary policy in addressing recessions, given the current low interest rates. It suggests that fiscal policy, including direct government spending and public investment, should play a larger role. The concept of semi-automatic stabilizers is introduced, advocating for pre-set rules to adjust spending during economic downturns, such as increased state assistance and temporary tax credits.

What does the speaker believe about the effectiveness of quantitative easing in future recessions?

According to the speaker, what should be relied upon to stimulate the economy during downturns?

What are semi-automatic stabilizers, as discussed by the speaker?

What are some potential forms of assistance mentioned for people during economic downturns?

What kind of fiscal stimulus does the speaker suggest will be necessary?