Business Case Studies & Business Publications

Bernanke's Dilemma

Warnock, Francis E...

Case

Bernanke's Dilemma

Warnock, Francis E.

GEM-0111 | Published February 22, 2013 | 29 pages Case

Collection: Darden School of Business

Add To Cart Buy Now

Product Details

At what point in the tepid recovery from the global financial crisis should the Fed take a major step in normalizing U.S. monetary policy by greatly reducing its holdings of U.S. Treasury bonds? Federal Reserve Board Chairman Ben Bernanke faced this question in Spring 2013, even as he was concerned that the U.S. economy was still on a weak footing. Suitable for both core and elective MBA courses in global financial markets and international finance, this case examines the risks associated with a policy some would consider monetizing the budget deficit. Students consider the factors behind past, current and prospective levels of U.S. long-term interest rates.

To analyze the potential path of U.S. long-term interest rates.