Book Review: Ben Bernanke’s Fed

For those who who wonder what the Fed is and how it does what it does, I found the perfect primer.

First, the boilerplate stuff from the publisher:
Product Description
Ben Bernanke’s swearing in as Federal Reserve chairman in 2006 marked the end of Alan Greenspan’s long, legendary career. To date, the new chair has garnered mixed reviews. Business economists see him as the best-qualified successor to Greenspan, while many traders and investors worry that he’s too academic for the job. Meanwhile, ordinary Americans do not even know who he is.

How will Bernanke’s leadership affect the Fed’s actions in the coming years? How will Bernanke build on Greenspan’s success, but also put his own stamp on the Fed? What will all this imply for businesses and investors? In Ben Bernanke’s Fed, Ethan Harris provides exceptional insights into these crucial issues.

Engaging and discerning, this book demystifies the man who has stepped into what many describe as the second most powerful job in America.

About the Author
Ethan S. Harris is a member of Lehman Brothers’ Global Economics team. A U.S. chief economist, he started his career at the Federal Reserve Bank of New York, joining Lehman Brothers in 1996.

So, it it worth it. In a word, yes. Now, if you are a veteran Fed watcher and have an advanced degree in Economics, then this may be a bit rudimentary for you. But, if you are like the overwhelming majority if people who are mystified by the Fed and its operations, this book is perfect.

Harris also does a nice job explaining the economic concepts that decisions are based on. For those without a background in economics, fear not, Harris explains everything he write about for all to understand.

Harris goes into detail on Ben Bernake’s background and education and illustrates how that influences his belief in how the Fed should operate today. Harris also examines his predecessor Alan Greenspan’s tenure as he tracks the current economic conditions we find ourselves in. He does a nice job laying out the Greenspan years without sounding too harsh or complimentary, it is a truly balanced look.

He then looks into Bernanke’s response to events as they unfolded both when he was a Fed Governor and as its leader. The only regret is the the books ends in the spring of 2008, too early to address the climax of events in capital markets we witness today….perhaps a sequel?

For those interested, you can buy the book through this link.

Visit the ValuePlays Bookstore for Great Investing Books