Absence Quote by Ben Bernanke
“The risk exists that, with aggregate demand exhibiting considerable momentum, output could overshoot its sustainable path, leading ultimately in the absence of countervailing monetary policy action to further upward pressure on inflation.”
About This Quote
Source Speech: Economic outlook, 2022
If demand stays strong, output may exceed sustainable levels, risking higher inflation without monetary countermeasures.
In simple terms: Strong demand can cause inflation without policy action.
Monitor demand and adjust policy proactively.
Themes
Mood
Type
When to use this quote
- central banking
- budget planning
- business forecasting
Key Concepts
Questions to Reflect On
- What indicators best signal an inflationary overshoot?
- How should policymakers balance growth and price stability?
Policy may lag behind rapid demand shifts.