How Psychology Will Determine Economy's Fate

Noam Scheiber, TNRIn a much-anticipated speech on Friday, Fed Chairman Ben Bernanke invoked a favorite metaphor of economists to describe the current, critical period in the recovery. Now is the moment, he said, that a “handoff” must occur between temporary boosts to growth, like government stimulus, and more lasting drivers, like spending by consumers and businesses. Bernanke stressed that the handoff was underway, but he conceded that “growth has been proceeding at a pace that is less vigorous than we would like.”The particular source of his anxiety was consumer...

Scott Brown Sheldon Whitehouse Sherrod Brown Susan Collins Ted Kaufman