title: Bernanke's Test: Ben Bernanke, Alan Greenspan, and the Drama of the Central Banker
author: Johan Van Overtveldt
description: Though a phrase like "the drama of the central banker" might once have drawn snickers, today the chairman of the Federal Reserve has become something of a star. This contemporary history, from the 1970s chairmanship of Paul Volcker on, provides an excellent introduction to the current financial crisis. Easy credit in the early-mid 2000s catalyzed the subprime mortgage debacle, but Dutch author and economist Van Overtveldt (The Chicago School) defends the Fed throughout, arguing that low interest rates kept Japanese-style deflation at bay. It's early for predictions, but Van Overtveldt portrays Bernanke as the man for the season: an academic focused on the Great Depression, Bernanke became a member of the Fed's Board of Governors in 2002. Though conventional, Bernanke's present approach-further cutting the federal funds rate to spur liquidity, keeping his hands off interest rates-and belief in regulation, set him apart from Greenspan, while his commitment to transparency and clear communication align him with the new administration. Anyone who wants to understand the role of the Fed in the current crisis will find this an accessible primer. <BR>Copyright &copy; Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
zlib_text: 
  
  
  # Chapter One
  
  
  
  
  
  Monday evening
  
  
  
  
  
  Oliver Spinner sat down, his face a puzzled frown. He had been informed that
  the board of governors just finished an extraordinary “in camera” session and
  he had not been invited. This in itself was perplexing considering that, as
  the institution’s chief financial officer, he attended all such meetings as a
  matter of course. Bewilderment deepened into concern when he saw the board
  chair in the president’s office as well, looking bleaker and more severe than
  he usually did. Sheldon Blythe was clearly discomforted, his high forehead
  profoundly creased, the mouth etched into a pucker as if tasting something
  thoroughly unappetizing and the eyes averted, studying the hands clasped in
  his lap.
  
  
  
  
  
  The only individual who seemed herself, which was to say in control, was the
  president; Vanessa Dworking shifted slightly in her seat, took full measure of
  the two men before her, and, seemingly satisfied that they were sufficiently
  attentive — in the case