If bankers become overly conservative in response to past lending mistakes - or if examiners force such behavior - it will hurt bankers' own long-term interests and the economy in general.

The Federal Reserve has always recognized the importance of allowing markets to work, and government oversight of financial firms will never be fully effective without the aid of strong market discipline.

The financial crisis that began in the summer of 2007 was an extraordinarily complex event with multiple causes.

In the future, financial firms of any type whose failure would pose a systemic risk must accept especially close regulatory scrutiny of their risk-taking.

The public in many countries is understandably concerned by the commitment of substantial government resources to aid the financial industry when other industries receive little or no assistance. This disparate treatment, unappealing as it is, appears unavoidable.

To minimize market uncertainty and achieve the maximum effect of its policies, the Federal Reserve is committed to providing the public as much information as possible about the uses of its balance sheet, plans regarding future uses of its balance sheet, and the criteria on which the relevant decisions are based.

The Federal Reserve has never suffered any losses in the course of its normal lending to banks and, now, to primary dealers.

There will not be an automatic increase in interest rate when unemployment hits 6.5%.

History proves... that a smart central bank can protect the economy and the financial sector from the nastier side effects of a stock market collapse.

Evolutionary psychologists suggest that humans experienced evolutionary benefits from brain developments that included aversion to loss and risk and from instincts for cooperation that helped strengthen communities.

In the tradition of national income accounting, economic policymakers have typically focused on variables such as income, wealth, and consumption.

Evolving technologies that allow economists to gather new types of data and to manipulate millions of data points are just one factor among several that are likely to transform the field in coming years.

In many spheres of human endeavor, from science to business to education to economic policy, good decisions depend on good measurement.

The Mexican debt crisis, Latin American debt crisis, the crises of the 1990s, the Wall Street stock market crash, and other events should have reminded us, and did remind us, that financial instability remains a concern, remains a problem.

Different countries have different kinds of financial structures.

Uncertainty is seen to retard investment independently of considerations of risk or expected return.

Preventing liquidation of an unbalanced market will leave you in tears.

In a mature economy like India's, which is becoming modern and a financially-oriented economy, an independent central bank, responsible central bank, is really central to success.

To achieve a more balanced international system over time, countries with excessive and unsustainable trade surpluses will need to allow their exchange rates to better reflect market fundamentals.

The one thing people don't appreciate, I think, is that central banking is not a new development. It's been around for a very long time.

Economic management involves the operation of economic frameworks in real time - for example, in the private sector, the management of complex financial institutions or, in the public sector, the day-to-day supervision of those institutions.

Economic engineering is about the design and analysis of frameworks for achieving specific economic objectives.

Economic science concerns itself primarily with theoretical and empirical generalizations about the behavior of individuals, institutions, markets, and national economies. Most academic research falls in this category.

I am particularly pleased to see that the Bendheim Center for Finance is thriving.