Australia Quote by Ben Bernanke

“If Australia finds it has a strong Australian dollar, and it has higher unemployment, then it would have to respond, and that would either be by increasing domestic demand or by weakening its own currency.” quote by Ben Bernanke — Download Open image

“If Australia finds it has a strong Australian dollar, and it has higher unemployment, then it would have to respond, and that would either be by increasing domestic demand or by weakening its own currency.”

Ben Bernanke

About This Quote

Source Speech: Economic Outlook, Ben Bernanke, 2008

A strong currency with high unemployment forces policy to boost demand or devalue money to restore balance.

In simple terms: Currency strength can hurt jobs, requiring policy action.

Key Takeaway

Adjust policy to restore employment.

Themes

economics policy currency employment inflation

Mood

analytical concerned

Type

explanatory policy

When to use this quote

government budgeting
central bank decisions
trade negotiations
business planning

Key Concepts

monetary policy exchange rates fiscal stimulus

Questions to Reflect On

What tools can a country use to weaken its currency?
How does currency strength affect everyday life?

A Different Perspective

Policy changes may cause inflation or debt concerns.

★ ★ ★ ★ ★ 2.9 out of 5 (6 ratings)

Australia Australian Australian Dollar Customer Dollar Domestic Demand Higher Unemployment Own Then Weakening Currency

More by Ben Bernanke

If Wall Street crashes, does Main Street follow? Not necessarily.

Ben Bernanke

Image

The Federal Reserve is not currently forecasting a recession.

Ben Bernanke

Image

We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.

Ben Bernanke

Image

In the past, Federal Reserve chairmen have not generally gone directly to the public.

Ben Bernanke

Image

The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars…

Ben Bernanke

Image

The Depression was an incredibly dramatic episode - an era of stock-market crashes, breadlines, bank runs and wild currency speculation, with the storm clouds…

Ben Bernanke

Image

Community development has a long history of innovation and learning from experience.

Ben Bernanke

Image

To be sure, the provision of liquidity alone can by no means solve the problems of credit risk and credit losses; but it can…

Ben Bernanke

Image

Consumers going through foreclosure typically will see their credit scores drop, raising longer-term questions about their ability to rebound financially and perhaps pursue a…

Ben Bernanke

Image

If you are not happy with yourself, even the loftiest achievements won't bring you much satisfaction.

Ben Bernanke

Image

High levels of homeownership have been shown to foster greater involvement in school and civic organizations, higher graduation rates, and greater neighborhood stability.

Ben Bernanke