Open Market operations are crucial determinant of the success of any country’s monetary policy. Therefore prioritizing the instruments thereof is bound to capacitate the policy makers gain control over elusive issues of interest rates versus jobs, prices versus pay hikes among others. By slackening the labor market, Ben Bernanke controlled inflation rate to the ceiling of 0.25% through relatively high unemployment but I strongly feel it distabilised other crucial sectors especially as seen in the oil price surge. For this alone I would give Ben a lower grade but for his consideration of the private sector demand he deserves my B. Oil prices rose by 1.5% and still he managed to stimulate consumer and businesses’ demand that enhanced gradual recovery via controlled low interest rates. This is likely to have a contra impact on the lending markets, inflation and hence unemployment (Ben 1).
Bernanke under intense pressure had to weigh between salvaging the lending markets by slashing rates and lowering inflation rates by raising rates and he chose the latter. This could earn him a C but since he succeeded in maintaining inflation at market-conducive level of below 0.25%, he gets my B.
He indicated that the oncoming economic growth was likely to raise the cost of capital adeptly likely to be linked with rising oil prices. The dollar fell in value while oil supplies, gasoline, fell thus raising prices. Ben was able to rid Americans from the rampant low interest mortgages that are bound to last two years, but that used to end in disarray and messing up the monetary policy of the US hence recession as with his predecessors. He was able to pre-empt the oncoming vicious cycle of falling mortgage industry and even though after trials to cut rates on political influence. This saw to it the knife-edge survival of the monetary policy even under recession threats. Ben managed to curtail the powers of the executive using reason to expound on the possible macroeconomic repercussions and hence I award his hands on tactics another B
In a nutshell Bernanke qualifies for a strong B for his balancing act and extensive knowledge of the economic concepts at play, ability to pre-empt an economically adverse phenomenon and lastly economic diplomacy for working well for the political elite besides towing economic principles (Orley and Richard 25).