New Books in Economics Ben Bernanke: “Like being a paleontologist”
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May 2, 2025 
David Wessel, a two-time Pulitzer Prize-winning journalist and director at the Brookings Institution, dives into the tumultuous years of Ben Bernanke's tenure at the Fed. He reflects on the impact of Bernanke's deep understanding of the Great Depression on his decision-making during the 2008 financial crisis. Wessel reveals the complexities of inflation targeting and the personal toll on leaders navigating economic turmoil. He also discusses critical choices, like the failure of Lehman Brothers, and how these decisions shaped public perception of the Federal Reserve.
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Bernanke's Paleontologist Moment
- Ben Bernanke's expertise in the Great Depression prepared him for the 2008 crisis unexpectedly.
- His historical knowledge helped him avoid past Fed mistakes in an unprecedented financial situation.
Writing the Crisis in Real Time
- David Wessel started writing a book on the Fed after Bear Stearns' collapse, not expecting a bigger crisis.
- Lehman's failure surprised even him, accelerating the narrative he was documenting in real time.
From Small Town to Harvard
- Bernanke's parents were convinced by a family friend to let him attend Harvard despite their worries.
- He found Harvard intimidating but succeeded despite early academic challenges.
