Bernanke: Fed Policies to Help Emerging Markets
He said he doesn't believe that interest-rate polices at the Fed and other developed nations necessarily dictate capital flows. And Bernanke said there are a number of ways that developing nations can control these investment flows to prevent asset bubbles or higher inflation.
For instance, a nation could allow the value of its currency to rise as foreign capital flows in. But Bernanke said that some emerging-market economies have chosen to keep the value of their currencies low to gain trade advantages. He didn't name any country in his speech, but U.S. manufacturers contend that China is manipulating its currency to keep its value low against the dollar to boost its exports and make American goods more expensive in China.
Bernanke said, "The perceived advantages of undervaluation and the problem of unwanted capital inflows must be understood as a package -- you can't have one without the other."
The Fed isn't expected to announce any major moves when it next meets on Oct. 23-24. Most analysts believe the central bank prefers to wait and monitor the impact of the September actions.Bernanke was in Tokyo to attend the annual meetings of the International Monetary Fund and the World Bank. Copies of his speech were distributed in Washington.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV