Bernanke Doctrine

The Bernanke Doctrine refers to the approach to monetary policy associated with Ben Bernanke, former Federal Reserve Chair, emphasizing the importance of central banks actively responding to economic crises. It advocates for the use of aggressive, transparent measures such as lowering interest rates and implementing unconventional tools like asset purchases (quantitative easing) to stabilize the economy, support employment, and prevent deflation. Bernanke’s strategy underscores the need for prompt, decisive action during economic downturns to maintain financial stability and promote sustainable growth.