Although we work through financial markets, our goal is to help Main Street, not Wall Street.
There is always some chance of recession in any year. But the evidence suggests that expansions don't die of old age.
Interpretation
What this quote means
Recessions are inevitable, but economic expansions typically continue unless disrupted by significant events.
Janet Yellen's quote emphasizes the cyclical nature of the economy, indicating that while recessions can happen unexpectedly in any given year, periods of economic growth (expansions) generally do not end simply due to the passage of time. Instead, expansions often continue until they are interrupted by external factors such as financial crises or policy changes, suggesting a more resilient nature of growth compared to the occurrence of downturns.
Themes
In practice
Example use cases
In a financial seminar discussing market trends, one might quote Yellen to highlight the resilience of economic growth.
More from Janet Yellen
All quotes βWe need to keep in mind the well-established fact that the full effects of monetary policy are felt only after long lags. This means that policy makers cannot wait until they have achieved their objectives to begin adjusting policy.
A clear lesson of history is that a 'sine qua non' for sustained economic recovery following a financial crisis is a thoroughgoing repair of the financial system.
Transparency concerning the Federal Reserve's conduct of monetary policy is desirable because better public understanding enhances the effectiveness of policy. More important, however, is that transparent communications reflect the Federal Reserve's commitment to accountability within our democratic system of government.
For decades, the pace of technological change in manufacturing has outstripped that in the economy as a whole. And, so, firms - manufacturing firms - have found it easier to continue producing by - with - reducing their workforces.
Inequality has risen to the point that it seems to me worthwhile for the U.S. to seriously consider taking the risk of making our economy more rewarding for more of the people.
Similar quotes
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Money differs from an automobile or mistress in being equally important to those who have it and those who do not.
In the 1940s, economics started getting highly mathematical. It was basically because economists weren't smart enough to write down models of real behavior that they started writing down models of highly rational behavior - and they kind of forgot about humans.
There never has been a time in our history when work was so abundant or when wages were as high, whether measured by the currency in which they are paid or by their power to supply the necessaries and comforts of life.
Money is not capital in most of the developing countries. It's just cash. Because it lacks the institutional, organizational, managerial forms to turn it into capital.
Raising the minimum wage allows business people to stop thinking about workers simply as costs to be cut and allows you to start thinking about workers as customers to be cultivated.