--- title: "Meaning & Key Takeaway of: During the Greenspan-Bernanke era, the…" description: "\"During the Greenspan-Bernanke era, the Fed has embraced the view that stability in the economy and stability in prices are mutually consistent. As long..." image: "https://sms4smile.com/quotes/i/ee4/steve-hanke-18876_emergency_during-the-greenspan-bernanke-era-the-fe_795816.jpg" --- # During the Greenspan-Bernanke era, the Fed has embraced… ![“During the Greenspan-Bernanke era, the Fed has embraced the view that stability in the economy and stability in prices are mutually consistent. As long as inflation remains at or below its target level, the Fed's modus operandi is to panic at the sight of real or perceived economic trouble and…” quote by Steve Hanke](https://sms4smile.com/quotes/i/ee4/steve-hanke-18876_emergency_during-the-greenspan-bernanke-era-the-fe_795816.jpg) [Download](https://sms4smile.com/quotes/i/ee4/steve-hanke-18876_emergency_during-the-greenspan-bernanke-era-the-fe_795816.jpg) [Open image](https://sms4smile.com/quotes/i/ee4/steve-hanke-18876_emergency_during-the-greenspan-bernanke-era-the-fe_795816.jpg) > “During the Greenspan-Bernanke era, the Fed has embraced the view that stability in the economy and stability in prices are mutually consistent. As long as inflation remains at or below its target level, the Fed's modus operandi is to panic at the sight of real or perceived economic trouble and provide emergency relief.” [Steve Hanke](https://sms4smile.com/quotes/author/steve-hanke/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. The Fed treats price stability and economic stability as the same goal, intervening quickly when any trouble appears. **In simple terms:** Fed sees price and economic stability as linked, reacts fast to problems. Key Takeaway Act quickly but watch for over‑reaction. Themes monetary policy inflation crisis management Mood cautious analytical Type policy economic When to use this quote - central bank decisions - market shocks - budget planning Key Concepts Keynesianism policy bias financial stability Questions to Reflect On - Is constant intervention sustainable? - How to balance stability with market discipline? A Different Perspective Over‑reliance on emergency measures can create moral hazard. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Emergency](https://sms4smile.com/quotes/about/emergency/) [Inflation](https://sms4smile.com/quotes/about/inflation/) [Modus operandi](https://sms4smile.com/quotes/about/modus-operandi/) ## Related quotes > [A wide range of possible fiscal policy tools and approaches could enhance the cyclical stability of the economy. For example, steps could be taken…](https://sms4smile.com/quotes/janet-yellen/a-wide-range-of-possible-fiscal-policy-tools-and-approaches-could/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [We have to keep our eye on inflation, but so far inflation remains reasonably in check on the global stage.](https://sms4smile.com/quotes/john-w-snow/we-have-to-keep-our-eye-on-inflation-but-so-far-inflation-remains/) [John W. 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