Bernanke: Coronavirus disruptions ‘much closer to a major snowstorm’ than the Great Depression
· Ex-Fed Chairman Ben Bernanke said the coronavirus economic halt is more like a natural disaster than an economic depression.
· “The Great Depression, for one thing, lasted for 12 years, and it came from human problems,” he said on CNBC.
· “If we don’t get the public health right,” no Fed monetary policy or Washington fiscal package is going to work, Bernanke added.
Matthew J. Belvedere, CNBC
Mar 25 2020
Ben Bernanke, the former Federal Reserve chairman who served before and after the 2008 financial crisis, told CNBC on Wednesday the coronavirus economic halt is more like a “major snowstorm” than an economic depression.
“This is a very different animal than the Great Depression,” Bernanke stressed. “The Great Depression, for one thing, lasted for 12 years, and it came from human problems: monetary and financial shocks that hit the system.”
“This has some of the same feel of panic, some of the feel of volatility,” he said in a “Squawk Box” interview. “It’s really much closer to a major snowstorm or a natural disaster than it is to a classic 1930s-style depression.”
Bernanke said he does expect a “very sharp” U.S. recession, but also a “fairly quick” recovery.
Bernanke’s comments echoed what current St. Louis Fed President James Bullard said earlier on “Squawk Box.” Bullard believes the economy is facing a huge shock to the system over the near term, but it will then bounce back strong after worst of the outbreak passes...
more, including links